PETALING JAYA, 5 October: Minetech Resources Bhd’s (MRB) wholly owned subsidiary Minetech Construction Sdn Bhd (MCSB) yesterday accepted a letter of award for a RM8.55 million contract from Gamuda Engineering Sdn Bhd.
Gamuda Engineering appointed MCSB as the sub-contractor to perform reinforced concrete structure and associated works for the proposed development of 714 units of Rumah Selangorku.
The works of the contract will be carried out and completed in 10 months from Aug 18, 2016.
“The contract is expected to contribute positively to the future earnings and net assets per shares of the MRB Group. The contract will not have any effect on the share capital and substantial shareholders’ shareholding of MRB,” MRB said in a stock exchange filing.
The risk factors affecting the contract include, but not limited to, execution risks such as availability of skilled manpower and general business risks. MRB Group management has the experience and expertise to undertake such a project and the board believes that the group is able to mitigate any of the aforesaid risk factors.
“The board of directors, after considering amongst others, the potential financial benefits arising from the implementation of the contract, is of the opinion that the acceptance of the contract is in the best interest of MRB Group.”