JAG Berhad (“JAG” or the “Company”), a total waste management and resource recovery specialist, today announced that its wholly-owned subsidiary, JAG Capital Equity Sdn. Bhd. (“JAG Capital”), has entered into binding agreements to subscribe for 60,000,000 new ordinary shares in Metal Bank Limited (“Metal Bank” or “MBK”), a gold exploration and development company listed on the Australian Securities Exchange (“ASX”), by way of a placement.
The placement shares are priced at A$0.01254 per share, representing a total investment of A$752,400 (approximately RM2.15 million, based on an indicative exchange rate of RM1.00 to A$0.35), which will be funded through internal funds. Upon issuance of the placement shares, JAG Capital will hold approximately 6.17% of Metal Bank’s enlarged issued share capital of 971,839,863 shares, becoming a new strategic cornerstone investor in the company.
The subscription represents a long-term strategic investment, with JAG intending to maintain a non-controlling interest in Metal Bank. The investment marks a strategic step in broadening JAG’s exposure to the upstream segment of the precious metals value chain, complementing its existing expertise in precious metal recycling and recovery through Jaring Metal Industries Sdn. Bhd. (“JMI“). By gaining exposure to gold exploration and potential future mining production, JAG aims to explore longer-term synergies with its established expertise in downstream gold extraction and recovery operations. This direction also aligns with the Group’s longer-term strategy to explore business to consumer (B2C) opportunities, potentially extending its reach from resource recovery to consumer markets.
Metal Bank is an ASX-listed mineral exploration and development company with a portfolio of gold, copper and cobalt projects in Australia. Its flagship asset in the Livingstone Gold Project in Western Australia, which holds a global JORC 2012 Mineral Resource Estimate of 2.81 million tonnes at 1.36g/t Au for 122,500 ounces of gold across three proximal deposits. Its other projects include the Whiteheads Gold Project near Kalgoorlie and the Millennium cobalt-copper-gold project near Cloncurry.
Proceeds from the placement will be used by Metal Bank to advance its production strategy at the Livingstone Gold Project, where initial production is targeted from the Homestead deposit, alongside exploration programmes at its other projects and working capital requirements. Metal Bank is progressing key development activities, including mining lease applications, metallurgical testwork and technical studies, as it works towards potential gold production.
Dato’ Ng Meow Giak, the Executive Director of JAG Berhad, commented, “This investment represents a strategic opportunity for JAG to broaden our presence across the precious metals value chain. While our existing operations through JMI focus on the recycling and recovery of precious metals, including gold, Metal Bank provides us with exposure to the upstream segment through its gold exploration and development activities in Australia. We believe this complementary positioning could create synergies over the longer term as Metal Bank progresses towards potential production, while allowing JAG to participate in opportunities beyond our existing recovery operations.”
Dato’ Ng added, “Our core Total Waste Management business remains the foundation of JAG’s growth strategy. While we continue strengthening our sourcing, processing and precious metal recovery capabilities, we also see opportunities to selectively invest in businesses that complement our existing expertise. Our investment in Metal Bank reflects this approach, allowing us to pursue new avenues for long-term value creation while maintaining financial discipline and a clear focus on our core operations.”
