KUALA LUMPUR (Dec 31): Borneo Oil Bhd is planning to raise up to RM30.56 million via private placement of up to 10% of its total issued shares to third party investors to be identified, to fund its limestone operations.

Of the total proceeds to be raised, it wants to spend RM11.02 million to install power grid and electrical substation for the quarry land located in Sabah; RM4.81 million to build a conveyor belt delivery system to transport the limestone aggregates from its limestone quarry to the integrated limestone processing plant; and RM5 million to upgrade the limestone quarry ops' general infrastructure.

It also intends to use RM9.54 million of the proceeds for working capital. This leaves a balance RM190,000, which will be used to defray expenses related to the proposed exercise, its stock exchange filing today showed.

Meanwhile, Borneo Oil plans to establish a new five-year employee share option scheme (ESOS), which involves no more than 15% of its total issued and paid-up share capital, to replace its existing five-year ESOS that it is planning to terminate. The existing ESOS was originally due to expire on July 31, 2022.

Borneo Oil said it has granted a total of 747.97 million ESOS options under this existing ESOS, representing approximately 14.56% of the total number of 5.14 billion Borneo Oil shares (excluding 201.58 million treasury shares), at the exercise price of 9 sen per option, as at Dec 11.

“Barring any unforeseen circumstances and subject to all required approvals being obtained, the proposals are expected to be completed by the first quarter of 2020,” Borneo Oil said.

Its share price closed unchanged at 4.5 sen today, bringing a market capitalisation of RM231.2 million. It saw some 4.08 million shares traded.