New World Cyberbase jumps after coal mine purchase

New World Cyberbase jumps after coal mine purchase

Shares of New World Cyberbase Ltd. soared 85 percent early on Thursday after the firm announced a plan to buy a coal mine in western Mongolia for HK$1.2 billion (US$154 million).

The company’s shares, which were suspended on January 26, gained HK$0.23 to open at HK$0.50 in resumed trading.

New World Cyberbase said in a statement it would buy a coal mine, comprising mining licences and an exploration licence and mining assets, in Khovd province in western Mongolia from Puraway Holdings Ltd. for HK$1.2 billion.

Of the purchase, HK$270 million will be settled by issue of 1.125 billion new shares at HK$0.24 each, HK$142.5 million in a convertible bond, and the remaining HK$787.5 million to be settled by a loan note as deferred payment. (US$1=HK$7.8)

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