CNMC Goldmine Holdings' application for large-scale operations at its Sokor gold field project has been approved.
This will allow the company to mine unlimited amounts of ore at Sokor, the group said on Tuesday evening. The mining lease, which originally expires in 2018, will also be extended to Dec 31, 2045, providing long-term certainty to the group's operations, it added.
The royalty rates for minerals produced in Sokor will be adjusted to 10 per cent, and the company will be required to pay the Kelantan State Lands and Mines Office (PTG) and other state authorities a processing payment of up to RM20 million for the lease extension.
Said CNMC chief executive Chris Lim: "Shareholders and investors have long been asking about the status of our lease extension application. We are glad to have finally received the go-ahead from PTG to continue operations at Sokor until 2034. The extension will enable CNMC to better plan and budget for the long term."
Shares in the company had been actively traded in the past few days, and closed unchanged at 56.5 Singapore cents on Tuesday before the announcement.