WaratahResources Ltd. intends to acquire Singapore-based technologysolutions provider CSB Engage Pte. Ltd. and quit the mining business.

The company entered into a definitive letter of intent to acquirethe company for about A$22 million, it said July 22.

It flagged a move out of mining in 2015, and in hired a technology groupfor help in making the move happen.

If the transaction goes through, the iron ore miner maytransfer its assets into a separate company, with existing shareholders owningits shares pro rata to their current holdings, it said in the latest statement.

The deal is subject to a capital raising by Waratah ofbetween A$5 million and A$9 million, satisfactory due diligence, shareholderapprovals, and execution of employment agreements with key employees for atleast two years.

Funds from the capital raising will be used to advanceoperations of CSB Engage, and for working capital purposes.

Meanwhile, Waratah appointed Neil Herbert as interimmanaging director and CEO. He will remain interim CEO until completion of theacquisition.

The company is also undertaking a share placement to raiseup to A$672,000 from sophisticated investors to assist in its shift to atechnology firm.

Waratah will issue up to 96 million fully paid ordinaryshares at 0.7 Australian cent per share, which will become 3,360,000 sharesafter consolidation at 20 cents per share.