Borneo Aqua drops plans to go into mining

PETALING JAYA: Borneo Aqua Harvest Bhd has dropped plans to acquire Wullersdorf Resources Sdn Bhd and diversify into the exploration for minerals, mining and mining-related businesses.

In a filing with Bursa Malaysia yesterday, the company said its cooperative agreement with Southsea Gold Sdn Bhd in relation to the prospecting, exploration, extraction and commercialisation of mining business at Bukit Mantri in Tawau, Sabah, lapsed on Monday.

The company said it will not request an extension of time from Southsea Gold for several proposed corporate exercises, including the acquisition of Wullersdorf Resources,diversification of its core business, increase in authorised share capital and amendments to its memorandum and articles of association to facilitate the issuance of irredeemable convertible preference shares (ICPS).

To recap, the company entered into a conditional share sale agreement on Nov 20, 2015 for the proposed acquisition of 10,000 ordinary shares of RM1 each in Wullersdorf Resources for RM131 million to be satisfied via issuance of 104.52 million new shares at an issue price of 94 sen per share and issuance of 34.84 million ICPS at an issue price of 94 sen per ICPS.

Southsea Gold, a company with common shareholders as Wullersdorf Resources, was granted by the Sabah Lands and Surveys Department a lease of 35 years up till Dec 31, 2048 on 1,000ha of land in Bukit Mantri for mining purposes.

Wullersdorf Resources was identified as a special purpose vehicle to venture into the mining business via a sub-lease agreement with Southsea Gold, on 317.7ha for 33 years at an annual rent of RM60,000.