Octagon eyes Australian copper project JV to exit PN17

by **Cals** Thu 17 Oct 2013, 16:02

Published: Thursday October 17, 2013 MYT 2:56:00 PM
Updated: Thursday October 17, 2013 MYT 3:10:29 PM
Octagon eyes Australian copper project JV to exit PN17

KUALA LUMPUR: Loss-making Octagon Consolidated Bhd has proposed to venture into a copper project in Australia in a move to put the company on a stronger footing and to exit the Practice Note 17.
It said on Thursday Octagon had agreed with Malaco Mining Sdn Bhd and Malaco Leichhardt Pty Ltd for the proposed joint development of the Leichhardt copper project in Queensland.
The framework agreement would see Malaco Leichhardt and Octagon Mining Group to undertake for the mining, extraction and process of copper oxide and transition ore in the project.
The agreement would also involve the sale of the copper cathode produced and for exclusive use of the process plant and infrastructure.
Malaco Leichhardt is the holder of amongst others mining leases within the Leichhardt Copper Project.
“The proposed joint development and operations is part of the company’s initiative to restore Octagon onto stronger financial footing via, amongst others, a balance sheet reconstruction, injection of new funds and settlement with the group’s creditors.
“The company is currently finalising its regularisation plan under Practice Note 17,” it said, adding that it would release details of the proposed regularisation exercise upon finalising the terms of the proposed joint development and operations.
Octagon posted net loss of RM1.90mil in the third quarter ended July 31, 2013 and RM11mil in the nine months. It had short-term borrowings of RM184.82mil as at July 31, 2013.