Milux to diversify into iron ore mining

PETALING JAYA: Milux Corp Bhd plans to diversify into iron ore mining to improve and diversify its earnings from its core business of consumer electrical and gas appliance manufacturing and trading.
In line with the diversification plan, Milux also proposed a capital raising exercise comprising a one-into-two share split followed by a four-for-five rights issue with one free warrant for every right shares subscribed.
In a statement yesterday, Milux said the proposed exercise will raise at least of RM15 million on a minimum subscription basis, which will be used entirely for the new business.
It said a total of RM10 million has been earmarked for site infrastructure and purchase of mining machineries while RM4.2 million has been allocated for working capital.
Its managing director Koh Pee Seng said by venturing into the iron ore business, the group can not only diversify its earnings base and improve its financial performance, but also utilise the cashflows and earnings to further strengthen the company's existing business in producing consumer electrical and gas products.
"We expect the iron ore sector to contribute higher returns and cashflow over the medium to long term and strengthen Milux's financial position," he said.