Minetech gets 3-year contract extension to prospect for gold at Selinsing mine

MINETECH Resources Bhd, one of Malaysia’s largest aggregate mining business player, has secured a three-year mining-related contract extension (from July 1, 2020 to June 30, 2023) valued at RM70 mil with regard to its Selinsing Gold Mine project in Pahang.

This fourth contract extension follows an agreement reached between its wholly owned subsidiary Minetech Construction Sdn Bhd and Able Return Sdn Bhd and and Damar Consolidated Exploration Sdn Bhd in the areas of waste removal, ore delivery and associated works in the open-pit Selinsing Gold Mine.

The Selinsing Gold Mine which belongs to Vancouver-based Monument Mining Ltd, public-listed mineral exploration and gold-mining company, has been assigned to operate one million tonnes per annum throughput mill of gold production in Malaysia.

The mine which has been in commercial gold production since 2010 has produced 312,916 oz of gold – generating over C$423 mil (RM1.4 bil) in gold revenues and C$268 mil (RM880 mil) in net cash since start-up up to March 31 last year, according to its CEO and president Cathy Zhai.

“Selinsing is our primary gold producing project,” Zhai noted in a production update dated Aug 21 last year which is made available on the Monument Mining website.

“We continue to work hard on several financing alternatives to upgrade the Selinsing Gold processing plant that will treat sulphide ore, bringing the new life of mine into production.”

Minetech began prospecting and mining for gold in the Selinsing Gold Mine in 2009.

“This extension continues a relationship that we have enjoyed with Selinsing Gold Mine for more than 10 years,” Minetech executive chairman Pengiran Datuk Awang Daud Awang Putera pointed out.

“This extension gives us visibility in for the three year-year period to 2023 while reinforcing our leading position in the mining industry of the region.”

To re-cap, Minetech first clinched the job – a three-year deal – on May 25, 2009 for RM37 mil. Subsequently on Oct 2, 2014, the company announced that the deal had been extended for another two years for RM42.37 mil.

Its third contract extension which was valued at RM24 mil commenced from July 1, 2016 for a two-year period

At 9.36am, Minetech was up 0.5 sen or 2.33% to 22 sen with 12.71 million shares traded, thus valuing the company at RM256 mil. – March 12, 2021

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