Singapore-listed JES said it would be investing up to SGD127m ($102.2m) in Mineriver, a Singapore-registered company which is to acquire the entire issued share capital of a Xinjiang Company, which holds mineral exploration rights in the Xinjiang Uygur Autonomous Region.
The mineral rights include nickel and magnesium and Mineriver is expected to obtain the mining rights and manufacture magnesium products.
“The signing of the investment agreement is an important step towards the realisation of our overall group strategy, which is to increase our earnings stream that is independent of the cyclical effect in the shipbuilding industry,” said Jin Xin, chairman and ceo of JES International.
The transaction will be in three tranches of SGD7m for the first tranche, and SGD60m each for two subsequent tranches. JES is only expected to proceed with the second and third tranches if the measured and indicated value of the mining assets is not less than SGD60bn.
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