The King of Malaysia has acquired a stake in a mining company that is expanding into the rare earth business.

Malaysia's King Sultan Ibrahim Iskandar has bought a stake in local mining company Southern Alliance Mining Ltd., in a deal worth S$6.1 million, the company said in a statement. The acquisition comes as Singapore-listed iron ore miner Southern Alliance Mining expands into Malaysia's rare earth sector, with a project in the King's home state of Johor. Sultan Ibrahim purchased a 2.25% stake in the company's issued shares from its managing director Pek Kok Sam at S$0.425 per share, a nearly 12% premium to Monday's closing price of S$0.380. The company said in a statement released Monday evening that it was not a party to the transaction and did not receive any proceeds from it.