Adamas Finance Asia, a London quoted pan-Asian diversified investment vehicle, has announced the increase of the Company's indirect shareholding in Hong Kong Mining Holdings (HKMH) from 79.26% to 84.81%.
The Company has issued 4,277,568 new ordinary shares of no par value each at US$1.20 per share in consideration for the acquisition of shares in HKMH held by certain minority shareholders and the waiving of the repayment of certain loans to HKMH by the vendors.
A further 319,694 Ordinary Shares will be issued to one of the vendors in two equal tranches in 12 months and 24 months. The investment in HKMH is held via Adamas’ wholly owned subsidiary, Dynamite Win.
HKMH is a natural resources company whose primary asset is a large dolomite magnesium limestone mine that has 113.4 million tonnes of ore reserve. The mine is located in the province of Shanxi, China where HKMH is in the process of restarting operations. In the year ended 31 December 2016, HKMH reported an unaudited consolidated loss before tax of HK$3.826 million (approximately US$497,000). As at 30 June 2017, ADAM's holding of 10.95% in HKMH was valued at US$8.7 million, implying a gross value of HKMH of US$79.5 million. On that basis the value of the Acquired Interests is US$4.41 million.