Introduction

The Board of Directors of Minetech wishes to announce that Techmile Resources Sdn Bhd [Registration No. 202001021725 (1378045-K)] ("TRSB"), a wholly-owned subsidiary of Minetech has on 30 November 2022 accepted a Letter of Award ("LOA”) from Empada Sdn Bhd [Registration No. 201301041889 (1071714-T)] (“Empada”) to undertake subcontracting works for provision of storage tank and pressure vessel maintenance services for Labuan Oil Terminal ("Maintenance Contract”). This Maintenance Contract is based on call-out basis and the value of the Maintenance Contract is approximately RM15.0 million, based on the Management’s best estimates and the agreed rates as stipulated in the LOA. 

The overall Maintenance Contract duration shall be two (2) years with effective from 30 November 2022 and is expected to be completed by third quarter of 2024.

Financial Effects

The Maintenance Contract is expected to contribute positively to the revenue, earnings and net assets of the Company and its subsidiaries (“Minetech Group”) for the financial years ending 31 March 2023, 31 March 2024 and 31 March 2025.

The Maintenance Contract will not have impact on the share capital and/or shareholding structure of Minetech.

Risk Factors

There are no foreseeable significant risks other than operational risk associated with the Maintenance Contract during the contract period. Minetech Group management would put in place control measures and operational procedures to reduce the impact or likelihood of such events.

Directors’ and/or major shareholders’ interests

None of the Directors and/ or Major Shareholders of Minetech and/or persons connected to them has any interest, direct or indirect, in the Maintenance Contract, save for Encik Azlan Shah Bin Zainal Arif whom is the Director of TRSB and Minetech Group and a shareholder with direct interest of 1.098% in Minetech, he is also the director and shareholder with direct interest of 49% in Empada.

Directors’ Statement

The Board of Directors, save for Encik Azlan Shah Bin Zainal Arif, after considering amongst others, the potential financial benefits arising from the Maintenance Contract, is of the opinion that the acceptance of the Maintenance Contract is in the best interest of Minetech Group.

This announcement is dated 30 November 2022.