KUALA LUMPUR (Dec 20): Bahvest Resources Bhd (KL:BAHVEST) has proposed to buy mining equipment from China-based Chengdu Mining Maintenance Technology Co Ltd for RM22.82 million, to be used to build a new gold mining processing plant.

The plant is located less than 1km from the company's existing facility in Bukit Mantri in Tawau, Sabah, Bahvest said in a filing with Bursa Malaysia. 

The company said the new plant, with a processing capacity of over 2,000 tonnes per day (tpd), is expected to double the output of the current plant, which operates at full capacity with a throughput of around 1,200 tpd. The commissioning of the plant is expected to commence within 12 months.

“This significant increase in capacity allows the group to meet higher production demands, improve operational throughput and optimise resource utilisation, which in return is expected to increase the group’s profitability when it reaches its full capacity.

“Additionally, the enhanced production capabilities would position the group to remain competitive in the gold mining market by offering cost-effective solutions, improving profit margins, and maintaining market relevance amidst industry fluctuations,” said Bahvest.

The company announced last week that its shareholders have approved a change in its name to Aumas Resources Bhd.

Shares of Bahvest gained 5.81% or 4.5 sen to close at 82 sen on Friday. This gives the Sabah-based gold mining company a market capitalisation of RM1.41 billion.