SINGAPORE (June 28): CNMC Goldmine Holdings has signed a non-binding letter of intent to acquire a 51% stake in a Malaysian mineral miner Pulai Mining.

Pulai Mining owns exploration and mining licenses with a combined license area of 3,841.3 ha, in Kelantan. The licences include an exploration licences of 2,300ha, seven gold mine licences for 1,166.2 ha, two iron ore mining licences of 359.7ha, and a feldspar mining licence for 15.41ha.

Pulai Mining will issue new shares to CNMC for a total consideration of RM13.8 million (S$4.6 million) which will be funded through internal resources.

As at 31 March 2016, CNMC had US$26.2 million (S$35.5 million) in cash on its balance sheet.

According to a filing to the exchange, CNMC’s executive vice chairman Choo Chee Kong holds an indirect interest of less than 3% of Pulai Mining, through his investment holding company, Messiah. As such, Choo will abstain from the resolutions set out by the board relating to the subscription.

CNMC says that the share acquisition is part of its strategy to seek out other mining projects in Malaysia to acquire and develop.

CNMC shares closed 3.8% lower at 38 cents.