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Notes to the Financial Statements (cont’d)
For the financial year ended 31 December 2011
41. Significant events
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The following significant events occurred during the financial year ended 31 December 2011:
(a) On 7 January 2011, the Company did not exercise its warrants in Asian Mineral Resources Limited (“AMR”) resulting in
its shareholding in AMR being diluted from 18.22% to 15.42%.
(b) On 17 January 2011, Bursa Malaysia Securities Berhad conditionally approved the listing and quotation of up to 25
million new Company (“MSC”) shares to be issued pursuant to the Proposed Public Issue in relation to the Proposed
Secondary Listing in Singapore Exchange Securities Trading Limited (“SGX-ST”).
On 21 January 2011, on behalf of MSC, CIMB Bank Berhad, Singapore Branch, announced that the issue price of the
public offering shares pursuant to the public issue has been fixed at SGD1.75 per MSC share, or in Ringgit Malaysia
equivalent of approximately RM4.165 per MSC share (based on RM/SGD exchange rate of 2.3800).
The public issue consists of:
i. A public offer of 1,000,000 public offering shares in Singapore; and
ii. A placement of 24,000,000 public offering shares to investors, including institutional and other investors in Singapore.
On 26 January 2011, a total of 25,000,000 offering shares have been allotted and issued which resulted in the increase of
the enlarged issued and paid-up share capital of MSC to RM100,000,000 comprising 100,000,000 MSC shares.
On 27 January 2011, the Secondary Listing has been completed following the listing of and quotation for the entire enlarged
issued and paid-up share capital of MSC of RM100,000,000 comprising 100,000,000 MSC shares on the Main Board of
SGX-ST.
(c) On 22 June 2011, the Company disposed of its entire 76.91% interest in Australia Oriental Minerals NL (“AOM”), a
company listed on Australian Securities Exchange, comprising a total of 1,677,545,461 ordinary shares at A$0.0016 per
share. Following the disposal, AOM ceased to be a subsidiary of the Company and Asiatic Coal Pte Ltd (“ACPL”), an
indirect subsidiary of the Company, also ceased to be a subsidiary of the Company following the dilution of its effective
interest from 53.07% to 30.0%.
On 2 November 2011, the Company disposed of its entire 30% interest in ACPL together with its indirect subsidiary, PT
Asiatic Coal Nusantara (“PT ACN”).
42. Subsequent events
The following events occurred subsequent to the end of the financial year ended 31 December 2011:
(a) On 5 March 2012, the Board of Directors of Malaysia Smelting Corporation Berhad (“MSC”) announced that Asian
Mineral Resources Limited (“AMR”), in which MSC currently holds 15.4% equity, has entered into a share subscription
agreement with Pala Investments Holdings Limited (“Pala”) whereby Pala will, subject to the satisfaction of certain
conditions precedent, subscribe for 71,666,667 new units via placement for total consideration of CDN$4,300,000. Each
unit will consist of one common share of AMR and one-half of a common share purchase warrant (“Warrants”) with each
whole Warrant carrying the right to subscribe one common share at an exercise price of CDN$0.10 for a period of five
years commencing on the closing date of the transaction. This placement will enable AMR to sustain its operations and
seek further funding to complete the Ban Phuc Nickel/Copper Project in Vietnam.
Concurrently with the above, MSC has entered into a right of first refusal agreement whereby MSC has granted Pala
a right of first refusal over MSC’s shareholding in AMR which is currently 31,297,661 shares. Pala and MSC have also
entered into a voting and support agreement whereby MSC is unconditionally obligated to vote its shares in favour of
the transactions provided for in the subscription agreement of Pala entered into with AMR in connection with the Pala
subscription. Until the earlier of the date of closing or termination of the Pala subscription and 6 July 2012, MSC will not
be able to dispose of any of its shares or engaging in activities in furtherance of a transaction whereby a third party would
acquire any shares of AMR.
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