KUALA LUMPUR (April 22): Construction and property development company Ageson Bhd (formerly Prinsiptek Corp Bhd) has bagged a US$26.6 million (RM116.77 million) contract to sell natural sand to Hong Kong-based Boyijun Resources (HK) Ltd.

In a bourse filing today, Ageson said its wholly-owned subsidiary Esa Pile Sdn Bhd has accepted a Letter of Intent (LOI) from Boyijun for the purchase of natural sand from Esa Pile which is principally involved in piling and construction works.

The contract is up to December 2021, with an option for extension.

Under the LOI, Boyijun will purchase the natural sand in bulk in freight-on-board terms. It involves a minimum of 50,000 tonnes plus 10% at Boyijun’s option per shipment and Boyijun reserves the right to purchase more shipments.

Ageson said the LOI is expected to augur well for the group as it will enable the group to further expand geographically.

It added that the LOI will enhance the group’s profitability and shareholders’ value, and create synergistic business opportunities to the group in the future."

"The LOI is expected to contribute positively to the group’s future earnings, earnings per share and enhance its consolidated net asset."

Ageson shares closed up 2.5 sen or 25% at 12 sen today, bringing it a market capitalisation of RM62.76 million. A total of 74.6 million shares were traded.