Office interiors maker AHB mulling stake for Mongolian gold and mineral mining venture

by AZALEA AZUAR / pic source: Artwright’s Facebook

OFFICE interiors maker AHB Holdings Bhd is mulling a minority stake in a company that has a joint venture (JV) with a Mongolian golds and minerals miner for a period of 30 years.

In an exchange filing on Feb 8, the loss-making AHB said it plans to take a 20% stake in Altangadas Mining Group Bhd for a purchase price to be determined after conducting an independent valuation.

It said it had signed a memorandum of understanding (MoU) to enter into a definitive share sale agreement with Piong Choong Fah, the largest stakeholder in Altangadas Mining with a 66% stake. The second largest shareholder in Altangadas Mining is Otgon-Od Namsrai, a Mongolian, with a 32% stake.

In March 2022, Altangadas Mining entered into a JV with a Mongolian company, Realxoin Resources LLC, to finance, develop, extract, mine, explore, unearth, remove golds and minerals from two tenements in Mongolia, specifically in the Altangadas and Shiirt region, for a period of 30 years, according to the filing.

The JV is entitled to 65% of the net profit of the sale of the golds and minerals extracted from the two tenements.

The parties have 90 days to prepare, finalise and execute a definitive share sale agreement.

AHB posted a net loss of RM8.35 million on a turnover of RM10.27 for the financial year ended Sept 30, 2022. In the year before, it posted a net loss of RM5.13 million on RM8 million in turnover. The stock closed at 11.5 sen.