KUALA LUMPUR (Dec 14): Handal Resources Bhd is teaming up with the investment arm of the Kelantan state government and a special purpose vehicle (SPV) to undertake the development and implementation of a tank farming project in Kelantan.

In a filing with Bursa Malaysia, Handal said its wholly-owned subsidiary Handal Engineering Sdn Bhd (HESB) today signed a heads of agreement (HOA) with Perbadanan Menteri Besar Kelantan (PMBK) and Tirai Dimensi Sdn Bhd for the proposed project.

Tirai Dimensi is a SPV whose promoters/founders have a combined experience of more than 20 years in the oil and gas industry, it added.

"The rationale for the HOA is to accommodate the intention of the (three) parties to work together for the purpose of undertaking the development and implementation of a tank farming project in Kelantan, in accordance with the terms of the HOA," said Handal.

Under the HOA, HESB will provide financing and undertake the construction of the tank farm, while PMBK will facilitate land acquisitions and other local or state government related matters. Tirai Dimensi, meanwhile, will provide expertise and experience for the successful implementation of the proposed project.

"All final terms and conditions to undertake the project shall be documented in a definitive agreement(s) to be signed by the parties during such time as shall be determined by the parties in writing," said Handal.

Handal shares closed the morning trade down 2 sen or 5.88% at 32 sen, with 80,000 shares done. Its market capitalisation stood at RM53.56 million.

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