Exact details of the deals have yet to be finalised and a dollar value could not be indicated, as a valuer has yet to be engaged and due diligence has not been completed. Nonetheless, Lim Wei Hung, executive director and COO of SAM, tells The Edge Singapore in an interview that the acquisitions will be “substantial” and will be paid using new SAM shares.
Southern Alliance Mining (SAM) (SGX:QNS
) , with its main revenue from iron ore production, plans to expand into rare earth mining, as it eyes the growth potential of another market for metals. On April 17, the Malaysia-based, Singapore-listed company signed two memorandums of understanding (MOUs) to potentially acquire stakes in two entities in rare earth mining.
The first acquisition is a 40% stake in MCRE Resources, which is already in production via a 2,161-hectare site in Perak. The other MOU is to acquire 100% of Paramount Synergy, which already has the necessary paperwork to carry out exploration activities within a 1,863-hectare site in Johor. SAM is now producing iron ore from its mine in Chaah, within the same Malaysian state.
