HONG KONG, Oct 11 Karce International Holdings Co Ltd 1159.HK said it would buy m

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HONG KONG, Oct 11 (Reuters) Karce International Holdings Co Ltd <1159.HK> said it would buy mining and exploration rights for coal mines in Mongolia for HK$1.4 billion (US$179 million) in new shares, promissory notes, convertible bonds and cash.

The electronic products maker said in a statement late on Wednesday that it would buy from a third party the entire Silverway Pacific Ltd, which indirectly holds a mining licence and an exploration licence for the Khuldiin South Coal Mine, and exploration licence for Khuldiin North Coal Mine and TN Coal Mine.

The company said the deal is to be settled through the issuance of HK$69.86 million worth of new shares, HK$150 million in cash, HK$200 million in notes and HK$980.14 million in bonds.

Karce will also place 455 million new shares at HK$0.33 a share to fund its cash payment portion.

Khuldiin South Coal Mine and Khuldiin North Coal Mine are located in Aimag province of Selenge, about 150 kilometres north of Mongolia's capital Ulaanbaatar, while TN Coal Mine is 156 kilometres south of the capital city.

Trading in shares of Karce, which has been suspended since Sept 20, will resume on Thursday.

Reuters DKS VP0650

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