KUALA LUMPUR (Nov 7): Niche Capital Emas Holdings Bhd has proposed a private placement to raise up to RM37.66 million to fund its mining business and working capital.
The integrated jeweller said in a filing with Bursa Malaysia on Monday (Nov 7) that the exercise will see fresh capital raised from issuing 369.23 million shares at an indicative issue price of 10.2 sen per share.
The indicative issue price is based on an approximate 19.69% discount to the five-day volume weighted average market price of Niche Capital shares of 12.7 sen per share.
Niche Capital plans to utilise part of the proceeds to acquire interests in minerals and mining assets. In addition, the fund will be used to develop and construct beneficiation facilities for new mineralisation identified, as well as for exploration activities in order to identify new gold mineralisation in the Sokor north area in Kelantan.
In June 2021, the company obtained its shareholders' approval to diversify its operation to include the exploration of minerals, mining and mining-related businesses.
In a separate announcement, Niche Capital said its joint venture (JV) unit received approval from the Kelantan Department of Mineral and Geoscience to carry out a gold alluvial operational mining scheme in Sokor, Kelantan for the period of two years from Aug 13, 2022 to Aug 12, 2024, encompassing the entire Sokor north area of approximately 547.4 hectares.
The commencement of gold alluvial mining operation in Sokor is now pending the approval of the environmental management plan by the Kelantan Department of Environment, which is currently in progress.
In April 2021, Niche Capital's wholly owned subsidiary Pembangunan Maju Setia Sdn Bhd formed a JV company with Spate Precious Metals Sdn Bhd to carry out and implement mining, extraction and processing of gold and minerals in Kelantan. The Sokor area has been identified as a gold prospect with the grade of the ore to be within the range of 0.4 to 0.6 gram/tonne.
Assuming this grade and ore tonnage range is estimated at 550,000 to 650,000 tonnes, this should give rise to a potential gold metal content ranging between 7,000 and 12,000 ounces.
Shares of Niche Capital closed unchanged at 13.5 sen on Monday, giving it a market capitalisation of RM114.23 million.
Source: TheEdge - 8 Nov 2022
