AMAC signs letter of intent with ESAN, Armeco-Fujairah companies to establish closed JS at capital of SAR 1 mln

AlMasane Alkobra Mining Company (AMAK) announced on Monday that is signed a Letter of Intent with (ESAN) company and (ARMICO-FUJAIRAH) company.

This letter of intent aims to establish a closed joint-stock company with an initial capital of one million Saudi Riyals, subject to future increases.

The primary objective of this company is to invest in industrial minerals and related industries in the Kingdom of Saudi Arabia, including but not limited to quartz, feldspar, silica sands, and various types of clay minerals.

The Company said today on Tadawul that as part of the agreement to establish the new company, the ownership distribution among the parties will be as follows:

– 45% for (AMAK)

– 45% for (ESAN)

– 10% for (ARMICO-FUJAIRAH).

The Company explained that the purpose of establishing this company is to collaborate with Esan Company in the field of industrial minerals and related industries, leveraging its diverse experience. Additionally, we aim to partner with the Arab Mining Company – Fujairah, known for its distinguished expertise in the mining and industrial investment sectors.

One of the significant advantages of forming this company is that it allows AMAK to focus on its core activities, including the study, development, and implementation of projects related to base metals such as copper, zinc, nickel, as well as precious metals like gold and silver in the KSA.

The effect of this Letter of Intent shall remain in force until the parties reach mutually agreed-upon terms or until 12 Nov. 2024 whichever occurs earlier.

The Company indicated that the Related Parties are: Eng.Mohammed bin Ahmad M. AlShehhi (AMAK’s Board Member) – Chairman of the Board of Directors at Arab mining Company- Fujairah.

Eng. Savas Sahin (AMAK’s Board Member) – CEO of ESAN company.

The Company added that this Letter of Intent (LOI) doesn’t result in any financial or legal obligations for either party towards the other, but the resulting agreements will be formulated later in detailed legal agreements and contracts.

It’s noteworthy that the company “ESAN,” headquartered in Istanbul, maintains multiple branches across China, Italy, and Ukraine. ESAN specializes in the exploration and production of industrial minerals and associated processing industries. Furthermore, the company is engaged in the production and global export of industrial mineral materials, encompassing feldspar, quartz, ball clay, kaolin, as well as metallic ores such as lead, zinc, and copper. In addition, the Arab Mining Company – Fujairah, situated in the Emirate of Fujairah within the United Arab Emirates, is wholly owned by the Arab Mining Company, (a pan-Arab shareholding company). This company’s expertise lies in mining and industrial investments, coupled with its commitment to research, development, and the execution of diverse mining extractive and industrial mining projects at the forefront of which is the project for producing basalt fibers and rebar in the Emirate of Fujairah.