Lion Diversified to grant 10-year mining rights to related firm

PETALING JAYA: Lion Diversified Holdings Bhd intends to grant Lion Tin Sdn Bhd sole and exclusive rights to carry out mining activities in six of its 800-acre mining lands in Kuala Langat, Selangor.
Both Lion Diversified and Lion Tin are controlled by steel tycoon Tan Sri William Cheng.
As per the contract to work agreement inked on Oct 11, Lion Tin will have the rights to extract and develop tin and other mineral deposits found either in or on the soil of earth or in the rocks beneath the soil, including but not limited to sand, silica, clay and amang.
Lion Tin on its sole discretion will also be able to sell and receive the sale proceeds of the minerals mined.
Lion Diversified said the contract award will allow the group to realise potential earnings from mining activities without incurring material operational and capital costs as Lion Tin is responsible for bearing such costs to extract the minerals.
The proposed time frame for Lion Tin to undertake mining activities is 10 years, with an additional extension of five years.
The contract is expected to contribute positively to Lion Diversified’s future earnings.
Its shares dropped 10% to close at 4.5 sen with some 101,000 shares changing hands.