KUALA LUMPUR (Feb 27): Niche Capital Emas Holdings Bhd has ended collaboration talks with an Indonesian nickel mining company for a nickel mining venture, but keeps the possibility open for the potential partnership to be revisited in the future.
The integrated jeweller said the company and PT Advance Nickel Energy (PT ANE) terminated their memorandum of understanding (MOU) for the potential collaboration with immediate effect due to “current market conditions”.
However, the company noted that both parties have agreed to revisit the collaboration in the future when the time is more opportune.
“The termination of the MOU does not have any material financial impact to the company,” it added in an exchange filing on Tuesday.
The MOU was signed in July last year, where the parties mulled the potential collaboration to take the form of Niche Capital Emas acquiring shares in PT ANE, establishing a joint venture or cooperating for contractor works.
The proposed collaboration was part of the company’s strategic plan to expand its mining operations beyond Malaysia and diversify into other minerals besides gold.
Shares in Niche Capital ended half a sen or 4% higher at 13 sen, giving the company a market capitalisation of RM169.68 million.