Yong Tai terminates gold mining agreement

• In March 2021, Yong Tai's wholly-owned subsidiary YTB Land Sdn Bhd (YTBL) was appointed as the exclusive mining operator to undertake the exploration and exploitation works on the project after it signed an agreement with the registered holder of the mining lease of the land, Tengku Fahad Mua'adzam Shah ibni Almarhum Sultan Haji Ahmad Shah, and Amazing Logic Sdn Bhd.

KUALA LUMPUR (April 13): Yong Tai Bhd has scrapped the mining agreement to undertake a gold mining project on a 100ha site in Bukit Kenderak in Pahang's Lipis district.

To recap, in March 2021, Yong Tai's wholly-owned subsidiary YTB Land Sdn Bhd (YTBL) was appointed as the exclusive mining operator to undertake the exploration and exploitation works on the project after it signed an agreement with the registered holder of the mining lease of the land, Tengku Fahad Mua'adzam Shah ibni Almarhum Sultan Haji Ahmad Shah, and Amazing Logic Sdn Bhd.

The mining agreement would have been valid for four years until May 11, 2025.

On Thursday (April 13), the property developer said in a bourse filing that the parties have terminated the mining agreement with immediate effect due to the non-fulfilment of the condition precedent of the mining agreement.

Upon termination, the mining agreement shall have no further force or effect and neither party shall have any claim whatsoever against the other in respect of the mining agreement, said Yong Tai.

The termination will not have any material financial impact on Yong Tai and its subsidiaries, it added. 

Under the mining agreement, it stated that commencement and undertaking of the exploitation works would be conditional upon satisfactory completion of the exploration of the land which includes surveying the land, taking drill samples and cores from the land and taking geological and geochemical samples from mineral seams by YTBL within six months from the date of the mining agreement (exploration period); as well as the approval of YTBL’s board and shareholders’ approval (if required) and all the relevant regulatory approvals. 

If the exploration works cannot be completed within the exploration period due to adverse weathers or other factors outside the control of YTBL, the owner would grant an additional three-month period for YTBL to carry out the exploration works. 

However, if either of the conditions above were not fulfilled, the mining agreement shall be terminated and be null and void and of no further effect and none of the parties thereto shall have any claims against each other, said Yong Tai in previous filing. 

Shares in Yong Tai closed up 0.5 sen or 1.52% at 33.5 sen, giving the group a market capitalisation of RM127 million.