UPDATE 1-Origo Partners buys stakes in Mongolian explorers

UPDATE 1-Origo Partners buys stakes in Mongolian explorers

  • To invest up to $5 mln for 23 pct in Bumbat Consolidated
  • To buy 10 pct stake in Huremtiin Hyar
  • FY pretax profit $39.5 mln vs loss $8.2 mln yr ago
  • Revenue falls 23 pct (Adds details)

June 23 (Reuters) – China-focused investment company Origo Partners (OPP.L: Quote) said it agreed to buy stakes in two Mongolia-based exploration companies, continuing its efforts to focus on the Chinese natural resources sector.

The company said it would invest up to $5 million for a 23 percent interest in Bumbat Consolidated Ltd, an exploration company focused on coal, iron-ore, copper and gold.

Origo will also acquire a 10 percent stake in copper and gold explorer Huremtiin Hyar LLC for $300,000, with an option to invest $3.5 million more to raise its stake to 70 percent.

Both Mongolian companies have exploration licences in areas where significant mineral deposits have been found, Origo said in a statement.

On June 11, Origo said it was raising up to $30 million in a placing to enable it to take advantage of deal opportunities in China’s clean-tech and agriculture sectors. [ID:nLDE65A075]

Separately, the company posted a full-year pretax profit, helped by a gain of $45.4 million related its acquisition of Origo Resource Partners Ltd.

For the year ended Dec. 31, pretax profit was $39.5 million, compared with a pretax loss of $8.2 million in the year-ago period. Revenue fell 23 percent to $3.7 million.