DANVILLE, Calif., Jan. 11, 2011 (GLOBE NEWSWIRE) -- S3 Investment Company, Inc. (Pink Sheets:SIVC) today updated the status of an acquisition transaction involving Mongolian Resource Corporation (MRC) a client of the company's wholly owned Redwood Capital subsidiary. Redwood Capital has been engaged as the Asian merchant banking financial advisor for MRC.
Mongolian Resource Corporation has entered into a conditional agreement to be acquired by Alamar Resources Limited, which is traded on the Australian Stock Exchange. In addition to the share exchange agreement executed by MRC and Alamar Resources, Alamar has signed a Letter of Engagement (LOE) with Stifel Nicolaus Weisel, the investment banking arm of Stifel Financial Corp., for a planned A$10 million capital raise. As part of the LOE, Stifel Nicolaus Weisel has been engaged for a period of 24 months following the completion of the transaction to provide investment banking services for Alamar Resources.
MRC is a diversified mining company engaged in the acquisition, development and operation of resource properties in Mongolia, particularly late stage or current producing mines. MRC's objective is to build shareholder value by maximizing the potential of its current properties and leveraging our financial strength and experience to acquire new long-life, low-cost projects. The company's current assets include gold, coal, tungsten, iron ore, and lithium.
"This Redwood Capital client transaction will be significant in a number of ways, not the least of which is the fact that Alamar is listed on the Australian Stock Exchange, a new global market for Redwood Capital clients," said S3 Chairman and CEO Jim Bickel. "MRC is also important due to its current base of operations in Mongolia, which Redwood sees as a growing market with almost limitless possibilities, especially in the metals and mining sector. We look forward to seeing this transaction close along the announced timetable."
Mongolia is seen as a new frontier for investors, particularly in the metals and mining sector, and Redwood Capital recently opened a new office in Ulaanbaatar, the capital city.
Redwood Capital has been engaged as a financial advisor for its client, which is based in Mongolia, where Redwood Capital recently opened an office. Redwood Capital assists private Chinese companies through the process of accessing capital markets through Alternative Public Offerings (APO) transactions. The company has participated in transactions for clients which are now listed on exchanges including the U.S. Over-the-Counter Bulletin Board (OTCBB) market and Canada's Toronto Stock Exchange (TSX).
As part of S3's previously announced re-branding under the Redwood name, the company has moved its website to . In the coming weeks, changes will be made to the site to reflect the new name and additional subsidiary operations. To sign up to receive information by email directly from S3 Investment Company whenever new information is disclosed by the company, please visit .
About S3 Investment Company, Inc.
S3 Investment Company, Inc. ( ) and its Redwood Group International subsidiary are focused on facilitating the success of its subsidiaries operating in the China market, including Redwood Capital, Inc. Redwood Capital assists private companies in Asia through the process of accessing capital markets through Alternative Public Offerings (APO) transactions. The company has participated in transactions for clients which are now listed on exchanges including the U.S. Over-the-Counter Bulletin Board (OTCBB) market and Canada's Toronto Stock Exchange (TSX) and has a pending client transaction on the Australian Stock Exchange. For more information, please visit . Redwood Group International Medical, Inc. assists companies seeking to import and distribute Western medical technologies and products into the China market.
Any statements contained herein related to future events are forward-looking statements and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Readers are cautioned not to place undue reliance on forward-looking statements. S3 Investment Company, Inc. undertakes no obligation to update any such statements to reflect actual events.
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