("Creon" or "the Company")
New Investment and Strategic UpdateCreon (AIM: CRO), the resource and resource infrastructure focussed investment company, is pleased to announce that it has acquired a 49% equity interest in Singapore based MGR Resources PTE Ltd ("MGR") (the "Investment").
About MGRMGR is wholesale trader of ferrous metals and ore. It sources iron ore principally from Africa, India and the Middle East and sells on to buyers in East Asia including China. In the 18 month period to 28 February 2013, MGR had unaudited revenues of approximately US$29.5 million and a net profit of approximately US$1.0 million.
Terms of the Investment
Creon has acquired 49% of MGR's equity share capital, for US$49,900 from Fortus PTE Ltd
("Fortus"). The balance of MGR's share capital will be held by Fortus.
Creon has agreed to provide a three year unsecured 15% coupon convertible loan to MGR of up to US$1.95 million to assist MGR to increase its trading operations ("Convertible Loan"). The Convertible Loan can be converted at any time during the three year period at Creon's option into new shares in MGR at US$1 per new share.
In the last 9 months, Creon has transformed itself, implemented its strategy and made and progressed its first investment: