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ISR Capital's acquisition target receives renewal of exploration permit

SINGAPORE (Nov 15): Tantalum Rare Earth Malagasy S.A.R.L.U (TRE), a company that holds the exploration licence to a Madagascar rare earth concession, has received a three-year renewal that gives exclusive rights up till Nov 2021, says ISR Capital in an SGX filing on Thursday night.

See: John Soh-linked ISR Capital gets nod for Tantalum deal, but further hurdles remain

See: Shareholders approve ISR Capital's bid to acquire Madagascar rare earth asset

See also: ISR Capital says chairman's statement at EGM mistranslated

The licence was first awarded back in 2008 but has been renewed several times since.

With the renewal, ISR Capital, which is trying to acquire a 60% stake in Tantalum Holdings (Mauritius), which wholly owns TRE, has crossed another hurdle in its bid to transform itself from an empty shell to a mining company.

Following results from detailed exploration of the concession, TRE can then apply for a so-called “Permis de Exploitation”, which means “exploitation licence”, adds ISR Capital.

Under revised terms, shareholders of ISR Capital gave the go-ahead to pay $3 million for the stake on Oct 30, following approval-in-principle given by the Singapore Exchange earlier.

Vendor REO Magnetic had bought the same stake for 3.7 million ($5.8 was million) euros.

ISR Capital's planned acquisition was first announced back in middle of 2016. Under the original 2016 terms of the acquisition, ISR was to pay $40 million for the same 60% stake in THM.

ISR Capital has since been linked to alleged penny stock saga mastermind John Soh, who is awaiting trial.

Shares of ISR Capital, which were halted just after market opened on Nov 14, last traded at 0.3 cent.