KUALA LUMPUR (June 10): Gold miner Niche Capital Emas Holdings Bhd (KL:NICE) said it has secured exclusive rights to develop and operate the KK Hill gold mining area in Jeli, Kelantan, under a joint venture agreement signed on Tuesday with another mining company.

The joint venture agreement with Enrich Mining Sdn Bhd follows a memorandum of understanding inked between the two sides in August 2024 that granted exclusive exploration rights to Niche Capital over the Sejana mining and mineral exploration project, encompassing an area of 3,255ha distributed over five pieces of land in Kelantan.

The KK Hill mining area spans 97.12ha within the Sejana Project, according to Niche Capital’s filing with Bursa Malaysia.

The group said an independent mineral resource estimate prepared by RSC Consulting Ltd estimates 7.64 million tonnes of ore at an average grade of 0.69 grammes per tonne of gold, comprising 169,300 troy ounces of in-situ gold resources at KK Hill.

“This ... mineral resources will significantly enhance the group’s mining business prospects,” Niche Capital said, adding that the group has yet to determine the total capital and investment outlay required for the project.

Under the joint venture terms, Niche Capital will pay Enrich Mining a tribute of 8% of the produced gold within 30 days from royalty payments to the Kelantan state authority for a period of five years.

Additional royalties include 10% to the Kelantan Land and Mines Office and 2% (hard rock mining) or 5% (alluvial mining) to the land's registered proprietor and beneficial owner, Perbadanan Pembangunan Ladang Rakyat Negeri Kelantan, within 30 days of payment to the state authority.

Enrich Mining is backed by Wan Kamaruddin Biji Sura @ Wan Abdullah, a former director of delisted Main-Market Sumatec Resources Bhd, and Chan Yok Peng, the founder of Sumatec and the current executive director of Aldrich Resources Bhd (KL:ALRICH).

Enrich Mining is owned by Tekad Mulia Sdn Bhd (90%) and Wan Kamaruddin (10%). The group became involved in the Sejana Project via a mining production sharing agreement signed in May 2020 with Bonanza Aycel Mining (Kelantan) Sdn Bhd (BAM Kelantan).

Shares in Niche Capital Emas closed unchanged at 12 sen on Tuesday, valuing the group at RM171.22 million. Year-to-date, the stock has fallen nearly 30%.