SINGAPORE (June 27): Anchor Resources is acquiring all the issued shares of GCT Manufacturing Sdn Bhd, for a consideration of S$100 million, to be satisfied in cash and the issue of new Anchor Resources shares.

The acquisition is considered a very substantial acquisition and an interested person transaction and is subject to the approval of the Singapore Exchange and Anchor Resources shareholders.

Anchor Resources, which made its debut trading on Catalist on March 19, last traded at 11.3 cents on June 21 and had a market cap of only S$31.6 million. The company had posted full-year net losses for the past nine years.

GCT owns an exclusive dimension stone granite concession of 800 acres in Hulu Terengganu in the State of Terengganu in Malaysia for a 14-year period expiring on Oct 26, 2029. The types of dimension stone granite found within the concession area include Terengganu Green, Sekayu White and Rosa Tenggo. GCT also owns granite block cutting facilities located in the vicinity of the concession area at Kampung Cheting, Sekayu.

Anchor Resources, which is currently mining for gold in Malaysia, plans to diversify into the new business of mining and quarry extraction of dimension stone granite as well as architectural stone and interior fit-out.

The vendors of the GCT shares are founder Lim Chiau Woei, who is also the managing director of Anchor Resources, private investor Koh Ah Luan and Luminor, which is part of private equity Luminor Capital Group.

To pay for costs and expenses related to the acquisition, Anchor Resources has also entered an agreement with Fortune Asia Long Short Fund and two other private investors to sell them 30.8 million new shares in the company at 10.4 cents each to raise net proceeds of S$3 million.