KUALA LUMPUR, Oct 14 (Bernama) -- JAG Bhd’s wholly-owned subsidiary, JAG Capital Equity Sdn Bhd, is subscribing to new shares representing 6.17 per cent of the enlarged issued share capital of Australia-listed gold exploration and development company Metal Bank Ltd for A$752,400 (about RM2.15 million).
The total waste management (TWM) and resource recovery specialist said it has inked binding agreements to subscribe for 60 million new Metal Bank shares at A$0.01254 apiece, to be funded through internal funds.
“Through the investment, JAG Capital will become a strategic cornerstone investor in MBK,” it said in a statement today.
JAG said the subscription represents a long-term strategic investment, with the group intending to maintain a non-controlling interest in Metal Bank, which has a portfolio of gold, copper and cobalt projects in Australia.
Proceeds from the placement will be used to advance Metal Bank’s production strategy at the Livingstone Gold Project, where initial production is targeted from the Homestead deposit, as well as fund exploration programmes at its other projects and working capital requirements.
JAG executive director Datuk Ng Meow Giak said the complementary positioning could create long-term synergies as Metal Bank progresses towards potential production while allowing JAG to participate in opportunities beyond its existing resource recovery operations.
In a filing with Bursa Malaysia, JAG said its wholly-owned subsidiary, JAG Renewable Energy Sdn Bhd, has signed an agreement with Kobe Steel Ltd to acquire a freehold industrial land in Shah Alam, Selangor, for RM36.89 million.
It said the proposed land acquisition forms part of the group’s strategy to expand its TWM business and develop additional processing capabilities for emerging industrial waste streams.
The land is also intended to support the establishment of new processing lines and facilities for the treatment, dismantling, segregation, recycling and recovery of materials from end-of-life equipment, while increasing the group’s existing processing and storage capacities.
-- BERNAMA