Thursday 28 Mar 2024
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KUALA LUMPUR (June 27): Borneo Oil Bhd’s subsidiary Borneo Oil & Gas Corp Sdn Bhd, has disposed of its entire 95% stake in a precious metals mining company for RM10 million.

The mining company — Jusra Mining Merapoh Sdn Bhd — is the main contractor appointed to mine five prospecting blocks measuring 1,780 acres in Lipis, Pahang, said Borneo Oil in a filing.

“Presently, it is working on one of the prospecting blocks that has been granted a mining lease on 8th April 2013 covering an area of 500 acres located at SG Serumbum, Hutan Simpan Hulu Jelai, Daerah Lipis, Pahang,” said Borneo Oil.

Borneo Oil acquired Jusra for RM5 million. Proceeds from the disposal will be used as working capital, it said.

The disposal, Borneo Oil added, is in line with the group’s plan to streamline its mining operations to focus its resources on the hard rock mining operations in Bukit Ibam, Pahang.

Amid positive results from earlier prospecting activities at the site, Borneo Oil said it plans to “leach on a commercial scale” pending necessary approvals from the relevant authorities.

Shares of Borneo Oil closed unchanged at 7 sen apiece, giving the group a market capitalisation of RM400.53 million.

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