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Manhattan Resources to acquire Chinese mining firm for $1 billion

Published on May 22, 2014 11:45 AM

SINGAPORE- Coal transporter Manhattan Resources has agreed to acquire mining firm Singxin Resources for $1 billion, in its first foray into China's mineral mining industry.

This will be paid for in full by issuing new shares in Manhattan. The original owners of Singxin will end up with 73 per cent of Manhattan's enlarged share capital, the firm said in a statement filed with the Singapore Exchange on Thursday.

If the acquisition is successful, Manhattan will offer a one-for-one bonus issue of about 1.9 billion warrants at $1 apiece for existing shareholders.

"This latest proposed acquisition offers a chance for the company to acquire a new business which will in turn provide it with a potential growing revenue stream and enable the company to diversify its operations and build a sustainable business," said Mr David Low, chief executive and managing director of Manhattan.

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