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Borneo, Sarawak, Sarawak Corridor of Renewable Energy (SCORE), Sarawak Economy

OMH expected to get A$26.25mln funding injection for project in Samalaju

THE RM1.53 billion (US$502 million) OM Holdings (OMH) Ltd ferroalloy smelting project in Samalaju is expected to receive a funding injection of RM81.9 million (A$26.25 million).

This is a huge vote of confidence in the company’s operations from institutional investors to develop the project, which is part of the Sarawak Corridor of Renewable Energy (SCORE).

The funding injection is from a placement of 75 million shares at A$0.35 (RM1.14) each, with strategic investor Boustead Singapore accounting for two thirds (50 million shares) of the placement.

“The involvement of both Boustead and the Investors is expected to greatly assist in the on-time and on-budget delivery of the Sarawak project,” the company said in a statement.

OM said it expected to call a shareholders meeting to approve the placement in late February, after which Boustead would be offered a seat on the company’s board.

The plant will produce ferro-alloys, notably ferro silicon and silico manganese.

A binding term sheet is already in place for the Samalaju plant with JFE Shoji Trade Corporation of Japan.

The signed term sheet is for an off-take of up to 100,000 tonnes per annum of Ferro Silicon product.

OMH is a Singapore-based company with global operations, which in 2008 was selected as a constituent of the S&P/ASX 200, a stock index comprised of 200 select ASX listed companies.

Boustead Singapore is a progressive global Infrastructure-Related Engineering Services and Geo-Spatial Technology Group listed on the Singapore Exchange.

JFE Shoji Trade Corporation, established in 1954, has ¥14.5 billion (RM575.2 million) in capital. It has 30 overseas offices in 15 countries in Asia, Europe, Oceania and the Americas.

The fact that global players believe in Samalaju and SCORE and are willing to continue investing in it is all fantastic news.

Great vision is necessary in order that there be real transformation for a better future Sarawakians. Great stuff.

The report from the West Australian:

OM to raise $26m in placement

By Stuart McKinnon

Manganese miner OM Holdings has announced a $26.25 million placement to engineering services business Boustead Singapore to help fund the development of its $US502 million Sarawak ferroalloy smelting project in Malaysia.

Subject to shareholder approval, the company will issue 75 million new shares to Boustead and a small number of other institutional investors at a discounted price of 35 cents each.

OM said the placement was consistent with it plan to attract strategic investors that supported the company’s vision, underlying fundamentals, growth strategy, downstream expansion and geographic diversification.

“The involvement of both Boustead and the Investors is expected to greatly assist in the on-time and on-budget delivery of the Sarawak project,” the company said in a statement.

OM said it expected to call a shareholders meeting to approve the placement in late February, after which Boustead would be offered a seat on the company’s board.

OM’s holds an 80 per cent stake in the Sarawak project, which will see it become a producer of ferro-alloys, notably ferro silicon and silico manganese.

The remaining 20 per cent stake is held by Malaysian conglomerate Cahya Mata Sarawak Berhad.

Shares in the company were off half a cent to 39.5 cents at 7.45am.

A report from Proactive Investors Australia:

Om Holdings: A$26.25m funding injection to develop Sarawak ferroalloy project in Malaysia

By John Phillips

Om Holdings (ASX: OMH) has received a major vote of confidence in the company’s operations from institutional investors to develop the 80% owned Sarawak ferroalloy project in Malaysia, with a A$26.25 million capital raising.

The funding injection is from a placement of 75 million shares at $0.35, with strategic investor Boustead Singapore accounting for two thirds (50 million shares) of the placement.

Proceeds will finance development activities at Sarawak as well as assisting in the timely financial close of the project, expected to occur in the June quarter of 2012.

Om Holdings added that in addition to facilitating the development of Sarawak, the placement to Boustead represents the formalisation of a strong strategic relationship with one of South-East Asia’s most successful, progressive and experienced engineering services businesses.

For Sarawak, a Binding term sheet is in place with JFE Shoji Trade Corporation of Japan signed for an off-take of up to 100,000 tonnes per annum of Ferro Silicon product from the project.

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