Fortress Minerals bags 2 prospecting licences in Sabah
Tessa Oh
CATALIST-LISTED Fortress Minerals has been granted two new licences in Sabah, Malaysia to undertake prospecting operations for copper, nickel and cobalt minerals, the iron ore miner said on Monday (Mar 6).
The prospecting licences were issued by the Sabah Land and Surveys Department to two subsidiaries of Fortress Minerals, and cover prospecting in the concession areas of 40 square kilometres (sq km) in Telupid, Sabah and 400 sq km in Tongod, Sabah.
The licence granted to Saga Mineral Sdn Bhd allows it to conduct prospecting operations for copper mineral between Dec 15, 2022, and Dec 14, 2024. Meanwhile, the licence granted to Kencana Primary Sdn Bhd for the period between Dec 19, 2022, and Dec 18, 2024, allows it to prospect for nickel, cooper and cobalt minerals.
The Telupid and Tongod areas of Sabah are known to be rich in mineral sources, including copper, iron ore, nickel and cobalt, said the company.
The prospecting licences “offer the opportunity to expand the group’s commodity profiles and diversify its revenue streams”, as part of its strategic growth efforts to “invest prudently through the cycle and to enhance long-term shareholder value”, said Fortress Minerals.
Exploration activities are expected to commence in April 2023 and comprise surface geological mapping with different surveys “to better define the targets for drilling campaigns”, said the group.
The total estimated commitment of the exploration activities for both projects is about RM30 million (S$9 million) over the two-year period, which is expected to be funded by a combination of internal and external sources.
This is not expected to have any material impact on the net asset value per share and earnings per share of the group for the financial year ending Feb 29, 2024.
Shares of Fortress Minerals closed S$0.04 or 10.7 per cent higher at S$0.415 on Monday before the announcement.
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