Fortress Minerals Limited – engaged in the exploration, mining, production and sale of iron ore concentrate – has filed a preliminary prospectus to list on the Singapore Exchange (SGX) Catalist Board.
The pricing, amount to be raised, and timing of the offering have not yet been announced.
Fortress Minerals produces iron ore concentrate from the East Valley and West Deposits in the Bukit Besi Mine located in Terengganu, Malaysia. Fortress Minerals sells the iron ore concentrate to steel mills and trading companies in China and Malaysia. The total area of the Bukt Besi Mine stands at approximately 526.2 hectares, and its mining rights expire in early 2033.
The company intends to deploy the IPO proceeds for further development of the Bukit Besi Mine, including future exploration and geology work, and expansion of iron ore processing capacities. It will also engage in the acquisition, joint venture, and/or development of new mines. The remaining proceeds will also be used for general working capital purposes.
Fortress Minerals generated revenues of $6.57 million during the 1HFY2019 ending August 31, 2018, as compared to zero revenues during the same period last year. It clocked profits of $2.01 million in 1HFY2019, as compared to losses of $546,000 in 1HFY2018.
The company’s major shareholders include its CEO, Chee Yew Fei, who holds 60 per cent of the total and issued and paid-up share capital of GISB, which owns 7.1 per cent of the total shares. Other major shareholders include Y F Chee Holdings Pte Ltd which holds 51.5 per cent stake, and SDB Mining Sdn Bhd which owns 37 per cent stake. Both companies are incorporated in Malaysia.
Fortress Minerals cornerstone investors include Loh Chen Yook, The Cheng Eng, The Kun Ann, Chang Chee Kheo, Arena Jujur Sdn. Bhd., First Grand Investment Pte Ltd, and Teambuild Construction Pte Ltd.
The IPO’s sponsor, issue manager, underwriter, and placement agent are Prime Partners Corporate Finance Pte Ltd.