PROPERTY developer Yong Tai Bhd’s wholly-owned subsidiary YTB Land Sdn Bhd has been appointed as the sole and exclusive gold mining operator for a 100 hectares site located at Bukit Kenderak, Hulu Jerai, Daerah Lipis, Pahang.
YTB Land will perform and undertake exploration and exploitation works on the mining site which is co-owned by Tengku Fahad Mua’adzam Shah ibni Almarhum Sultan Ahmad Shah Al-Musta’in Billah – who is also is also YTB’s existing joint venture partner for Impression U-Thant property development project – and Amazing Logic Sdn Bhd.
“This appointment is a golden opportunity for the group to diversify away from its property development and tourism business, which has been severely affected by the COVID-19 pandemic,” YTB’s CEO Datuk Wira Boo Kuang Loon remarked.
“A brownfield project is also a viable option for us as it offers a faster return at a lower cost by using existing infrastructure.”
According to the group, the mining agreement is valid until May 11, 2025 for the initial term and that the group could apply for an extension of the mining lease for additional period of five years if the gold deposits in the land are not exhausted.
Meanwhile, the mining area was in operations over the last five years with proven gold mined, giving a better exploration database and detailed geological models, which translated into reduced risks and huge discount on capital costs.
“Given the average gold price of around RM225,000 per kg, YTB is set to record a revenue of RM4.5 mil per month if the mining activities run at the estimated average capacity of 20kg,” Yong Tai said in a statement.
“The exploration works will commence within six months from the date of the mining agreement while the operational costs are expected to be funded through a combination of sale proceeds from gold production and/or bank borrowings.” – March 24, 2021
