Niche Capital Allocates RM23.18 Mln To Advance KK Hill, Sokor Midland Gold Projects

By Durratul Ain Ahmad Fuad

KUALA LUMPUR, Oct 8 (Bernama) -- Niche Capital Emas Holdings Bhd (NICE) plans to allocate approximately RM23.18 million or 89 per cent of the total RM26.18 million raised from its private placement exercise to advance its mining business, particularly the KK Hill and Sokor Midland projects in Kelantan.

NICE chief operating officer Tan Ken Sim said the proceeds of RM23.18 million would be used to support exploration, resource verification, and regulatory approvals. 

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“These investments are essential for de-risking our projects, upgrading resources to Joint Ore Reserves Committee (JORC) standards, and preparing the groundwork for future large-scale production,” he told Bernama. 

At Sokor, Tan said the company aims to enhance processing throughput by 20-30 per cent and improve gold recovery rates, enabling better yields from current ore bodies and contributing incremental revenue in the near term.

“For KK Hill, our target is to move the project towards commercial production within 18-24 months, subject to final approvals,” he said.

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He noted that KK Hill, secured via a joint venture (JV) in June 2025, has an estimated JORC-compliant resource valued in the hundreds of millions of ringgit and is positioned as a key growth driver for the group.

At its recent extraordinary general meeting (EGM) held on Sept 19, the company obtained shareholder approval for a private placement of about 296.7 million new shares, expected to raise approximately RM26.18 million, based on the indicative issue price.

Tan said that of the RM23.18 million proceeds allocated to advance the mining business, RM5 million would go towards infrastructure development — including access roads, bridges, site clearing, and temporary exploration facilities at Sokor North, Midland, and KK Hill.

A further RM9.93 million is earmarked for resource definition and exploration activities such as drilling, trenching, assay testing, JORC certification, and exploration within an initial 97.12-hectare area at Sokor and KK Hill.

“Regulatory payments related to the KK Hill project, including land-use approvals, exploration permits, mining leases, environmental impact assessments (EIAs), sustainability compliance, and landowner compensation, are projected at RM8.24 million. 

“The remaining RM2 million will be allocated for working capital to cover trade payables, staff expenses, and general operating costs, while RM1 million is set aside for advisory, regulatory, and placement-related fees,” he added. 

At the same EGM, shareholders also approved a RM70 million share capital reduction to offset accumulated losses, creating room for future dividends, alongside a proposed bonus issue of free warrants.

NICE entered into a JV with Spate Precious Metals in 2021 to develop its Sokor project, with initial mining operations focused on alluvial gold. 

Mining activities commenced in 2023, with commercial operations at the Sokor North heap-leach plant officially commissioned in October 2024. The plant began contributing to group revenue in the third quarter of the financial year ending 2025 (FY2025).

Since the start of mining activities in March 2023, the Sokor plant has produced 18.18 kilograms of fine gold, generating RM960,000 in revenue for FY2023 and RM3.45 million for FY2024.

Meanwhile, NICE chief financial officer Chong See Teck said the group invested around RM50 million in capital expenditures over the three-year exploration and development period leading up to the commissioning of the Sokor heap-leach plant.

He said the estimated cost to build a single heap-leach plant is between RM15 million and RM20 million, excluding expenses for drilling, earthworks, and preparatory works.

“We are currently exploring potential JV partnerships to help mitigate these upfront preparatory costs rather than the plant construction itself,” he said.

Chong added that a second heap-leach plant is scheduled for construction in 2026, subject to certain conditions, while a third plant at Sokor North is being considered as a carbon-in-leach plant.

On KK Hill, he said the site holds an estimated 169,300 ounces of gold valued at US$590 million, based on a gold price of US$3,500 per troy ounce.

According to Chong, NICE’s immediate focus remains on the Central Gold Belt, covering Sokor North, Midland, South, and KK Hill, with a total tenement size reaching approximately 1,831 hectares, positioning it among the largest pure gold mining companies in Malaysia.

He added that while the company remains open to exploring opportunities in Pahang, Terengganu, Sabah and Sarawak, any expansion outside Kelantan will only proceed after technical due diligence, engagement with local authorities, and a clear commercial case.

“Our main focus remains on optimising operations within our existing landbank. We treat Sokor as the current revenue engine and KK Hill as the next growth leg,” he said. 

The surge in gold prices, which have more than doubled from around RM250 per gram in 2021 to above RM500 per gram currently, provides a favourable environment for NICE to accelerate its production ramp-up.

-- BERNAMA