Anchor Resources to acquire mining firm for $100m, list 30.8m new shares

The target company is expected to have a cash balance of $6.5m.

Catalist-listed Anchor Resources has announced the proposed acquisition of a mining and quarry extraction company for $100 million.

The acquisition will provide the group with an additional income stream from the sale of dimension stone granite. It will also enlarge the group's financial position as the target company is expected to have a cash balance of roughly $6.5 million.

In connection with the acquisition, the company will allot and issue an aggregate of 30.7 million new shares to three subscribers. Fortune Asia Long Short Fund will receive 14.4 million shares, representing a 5.15% stake in the existing share capital of the company; Tay Kwong Hua subscribed to 11.37 million shares, representing a 4.06% stake; while Lim TIong Kheng Steven snapped up 5 million placement shares, representing a 1.79% strake in the company.