AsiaPhos to acquire China resource group for $36.8m

Singapore July 6th, By Ann Williams, Straits Times

Catalist-listed mineral resource group AsiaPhos announced on Monday that it will acquire the entire issued and paid-up capital of LY Resources (LYR Group) for $36.8 million from Mr Luo Yong, who owns half of the equity interest in Mianzhu Dashan Mining Co Ltd (Dashan), the group’s cooperation partner in China.

AsiaPhos said the acquisition will allow it to acquire the economic benefits of an existing cooperation arrangement presently accruing to its partner Dashan.

It will also facilitate the ownership of a 55 per cent equity interest in Deyang Fengtai Mining Co Ltd, a company incorporated in China, which holds the FengTai licence – an exploration licence for barite rocks in an area situated in the vicinity of the group’s existing mines in China’s Sichuan province.

AsiaPhos CEO Dr Ong Hian Eng said the LYR acquisition will improve the group’s operating cash flows as Dashan’s share of profits from the cooperation arrangement which are recognised as AsiaPhos’ production costs need not be payable to Dashan after the completion of the transaction.

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