Southern Alliance Mining announced on July 16 that it has entered into a joint venture agreement with Duli Yang Maha Mulia Sultan Ibrahim Ibni Almarhum Sultan Iskandar to carry out exploration work for gold and any other mineral or deposits and/or mining activities at the Tenggaroh mine, Johor.
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The JVCo will be 85% owned by the group, while the Sultan will hold the remaining 15%.
In view of the current opportunity presented by the joint venture and gold mining operation, the group proposes to diversify its existing business of selling iron ore concentrate of low level of impurities with total Fe grade of between 62% to 65% to steel mills and trading companies mainly located in Malaysia and China; and pipe coating materials that are crushed iron ore with a natural characteristic of a higher density for subsea pipes to include the mining of gold and other precious metals, base metals and minerals.
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As at July 16, shares in Southern Alliance Mining closed 8.8% higher at $1.11.