Shares of Think Environmental , a Singapore-based firm that invests in and manages renewable energy businesses, rose as much as 2.9 percent on Tuesday after it said it will acquire 70 percent of gold miner Mornington Offshore for $35 million.
At 0222 GMT, Think Environmental shares were trading at S$0.72 on a volume of 4 million shares.
The acquisition will give Think Environmental control of gold concessions in Mali in Western Africa, thus making it the only Singapore-listed company with gold mining assets, it said in a statement.
“Logically it should be positive, but this company hasn’t got a long track record. It’ll take a while for people to see if it’s a great investment, and also how much reserves there are in this gold mining company,” said a local trader.
“Although gold prices are high, but at the end of the day what’s important is whether you have a lot of gold reserves,” he added.
Spot gold edged higher to $1,386.30 an ounce on Tuesday, as the dollar fell nearly half a percent in thin year-end trade, and strong demand is expected to lend support to the bullion into the new year.
