Kuala lumpur: 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.

According to BERNAMA News Agency, NICE chief operating officer Tan Ken Sim stated that the proceeds of RM23.18 million will be used to support exploration, resource verification, and regulatory approvals. These investments are seen as essential for de-risking the projects, upgrading resources to Joint Ore Reserves Committee (JORC) standards, and laying the groundwork for future large-scale production. At Sokor, the company aims to enhance processing throughput by 20-30 per cent and improve gold recovery rates, which is expected to contribute to incremental revenue in the near term.

For the KK Hill project, NICE targets moving towards commercial production within 18-24 months, pending final approvals. The KK Hill site, secured via a joint venture in June 2025, has an estimated JORC-compliant resource valued in the hundreds of millions of ringgit and is considered a key growth driver for NICE.

At a recent extraordinary general meeting held on September 19, the company received shareholder approval for a private placement of about 296.7 million new shares, projected to raise approximately RM26.18 million based on the indicative issue price. Of the RM23.18 million proceeds allocated to advance the mining business, RM5 million will be invested in infrastructure development, including access roads, bridges, site clearing, and temporary exploration facilities at Sokor North, Midland, and KK Hill.

An additional 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, 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.

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 joint venture with Spate Precious Metals in 2021 to develop its Sokor project, with initial mining operations focused on alluvial gold. Mining activities began in 2023, with commercial operations at the Sokor North heap-leach plant officially commissioned in October 2024, contributing to group revenue from the third quarter of the financial year ending 2025.

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. NICE’s chief financial officer, Chong See Teck, mentioned 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. 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.

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, 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. 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.

Chong noted that while the company remains open to exploring opportunities in Pahang, Terengganu, Sabah, and Sarawak, any expansion outside Kelantan will proceed only after technical due diligence, engagement with local authorities, and a clear commercial case. The main focus is on optimizing operations within the existing landbank, treating Sokor as the current revenue engine and KK Hill as the next growth leg. 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 favorable environment for NICE to accelerate its production ramp-up.