SHH Resources (KLSE:SHH) subsidiary, Pureyield Mining, signed a share sale agreement with Sa Yijiao to acquire a 51% stake in Stellar Jewel Mining for 4 million ringgit, according to a Thursday filing with the Malaysian Exchange.
Stellar Jewel's key asset is a mining agreement with Jayamas Mining, which gives it contractual rights to undertake gold mining and extraction on about 153.8 hectares in Kelantan. The lease expires on July 30, 2027, with a second renewal extending the expiration date to July 30, 2031.
Via an additional shareholders' agreement, Pureyield will provide Stellar with a loan of 1.5 million ringgit, while Sa Yijiao will provide a loan of the same amount.
The acquisition aligns with the company's strategy to establish new sources of recurring income and enter the upstream gold mining sector.