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KUALA LUMPUR (March 24): Real estate developer Yong Tai Bhd’s subsidiary was designated as the exclusive mining operator to carry out exploration work on a 100ha site at Bukit Kenderak in the Lipis district of Pahang.
In a filing with Bursa Malaysia, Yong Tai said that the wholly owned subsidiary YTB Land Sdn Bhd has entered into an agreement with the land’s registered mining lease holder, Tengku Fahad Mua’adzam Shah ibni Almarhum Sultan Haji Ahmad Shah, and Amazing Logic Sdn Bhd.
Tengku Fahad, who is also Yong Tai’s existing joint venture partner for the Impression U-Thant property development project, has appointed Amazing Logic to manage the economic exploitation of the rights under the mining lease.
Tengku Fahad and Tengku Nor Aizah Sultan Abu Bakar are the directors of Amazing Logic. The company is 50% owned by Hawthorne Capital Sdn Bhd and the remainder by Tengku Nor Aizah, Tengku Nong Maharani Sultan Abu Bakar, Tengku Zabedah Sultan Abu Bakar and Tengku Nina Sir Abu Bakar (50%).
Yong Tai Chief Executive Officer Datuk Wira Boo Kuang Loon said in a press release that the group’s appointment is a golden opportunity to diversify its tourism and real estate development business, which has been severely affected by the Covid- pandemic. 19.
“A brownfield project is also a viable option for us, as it offers a faster return at a lower cost when using existing infrastructure,” he added.
Yong Tai said that the mining area has been in operation for the past five years with proven gold mined, providing a better exploration database and detailed geological models, resulting in reduced risks and deep discounts in capital costs. .
“Given the average gold price of around RM 225,000 per kg, Yong Tai will record revenue of RM 4.5 million per month if mining activities are carried out at the estimated average capacity of 20 kg,” the group said.
“As consideration for the rights granted to the group to carry out the mining operation and once exploration work on the land is satisfactorily completed, the group would pay RM30 million of a base fee to the owner for four years, assuming production monthly gold is 20 kg of gold per month.
“For all gold mined in excess of the monthly production of 20 kg, 7.5% of the gross value mined during the corresponding month would be paid as an excess fee to the owner of the mining lease,” he added.
The mining contract is valid until May 11, 2025 for the initial term and the group could request an extension of the mining lease for an additional five years if the gold deposits on the ground are not depleted.
The operating costs of the mining works are expected to be financed through a combination of proceeds from the sale of gold production and / or bank loans, Yong Tai said.
Yong Tai’s shares rose to 45.5 sen on December 7 after announcing a Covid-19 vaccine deal. The shares had been trading between 4.5 sen and 20 sen for the past year.
Today, the counter closed one sen or 3.85% higher at 27 sen, valuing the group at RM340 million.
He was one of the most actively traded accountants in Bursa Malaysia, with 148.61 million shares changing hands, three times his 200-day average trading volume of 47.63 million shares.
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