KUALA LUMPUR: Jewellery trader Niche Capital Emas Holdings Bhd is planning to venture into the gold mining business.
The company told Bursa Malaysia on Wednesday that it has entered into a Joint Venture Agreement (JVA) with Spate Precious Metals Sdn Bhd to undertake a gold mining project in Tanah Merah, Kelantan.
The group said it has been given access, through the JVA, to mine on an area measuring approximately 50 hectares which is part of the 547.4 hectares Sokor North area.
"The Group will undertake further exploration studies on the Mining Area to identify specific mineral deposits areas. Barring any unforeseen circumstances, the Group expects its Mining Business to contribute towards its earnings in 4th quarter 2021," it said.
Meanwhile, the group has proposed to raise as much as RM26.85mil, via the issuance of new shares of about 20% of its current paid up share capital, to fund the gold mining project.
The 146 million new shares will be issued to Macquarie Bank Ltd (122 million new shares) and Heah Kwai Keng (22 million new shares).
Macquarie will pay at least 12 sen a share, while Heah has agreed to pay 18.33 sen a share.