KUALA LUMPUR: Alaska Mining Sdn Bhd's (AMSB) sole shareholder, Lee Hon Kit, is selling a 51 per cent stake in the company for A$5.0 million (RM15.2 million) Nanopac Alaska Sdn Bhd (NASB) under a share sale agreement.
The stake sale will be satisfied through issuing new shares in NASB to be paid in two tranches.
The first tranche of new shares amounting to A$2.5 million (RM7.77 million) will be paid upfront following the share sale agreement, while the second tranche of new shares amounting to A$2.5 million (RM7.77 million) will be paid out after the company has achieved A$5.0 million (RM15.2 million) in net profit.
As part of the share sale agreement, Lee will be appointed the managing director of AMSB.
AMSB has been granted rights to mine sands to be processed into silica and ilmenite, from which a Chinese business group has agreed to an offtake agreement with part of the ilmenite produced.
"This acquisition is advantageous to NASB as this secures a steady flow of raw materials for the nano-solar and existing line of products, which it would otherwise have to source through third parties.
"The mining operations will also give NASB a source of recurring income as the silica and ilmenite that it does not require will be sold to others while ensuring that the mining operations remain commercially
sustainable, as the offtake agreement with the Chinese business group shows," Lee said in a statement.
NASB is a Nanopac Innovation Ltd (NIL) unit on the Sydney-based National Stock Exchange of Australia.
NIL engages in the research, development, manufacturing, distribution and servicing of nanotechnology materials and products.
The company's other businesses include nano-solar panels and raw materials for the paint industry.
Lee is the sole shareholder of AMSB, an earthworks and mining specialist, and a trader of various goods and logistics services.
He looks forward to working with NASB and NIL to grow the mining business and, simultaneously, ensure a steady flow of silica for nano-solar panel production and ilmenite for its paint products.
NASB acting chief executive officer Tobby Tan welcomed Lee to the NIL family.
"We do not doubt that with his knowledge and experience, we will be able to grow the mining business to greater heights.
"We also believe that the acquisition of the stake will add to our production capabilities and is positive for the growth of NIL's solar panels and paints businesses," he said.