Hong Lai Huat announced that its wholly-owned subsidiary, HLH Agriculture (Cambodia) (HLHA) has terminated its joint venture (JV) agreement with HSC Group (HSCG) for the proposed exploration and mining of mineral resources at the Cambodia-Singapore Agriculture Hub.
The group says that the process to secure regulatory approval is still under review by the relevant authorities in Cambodia. However, the agreed period under the JV agreement in which 35% is held by HLHA and balance 65% under HSCG has lapsed, hence, both parties have mutually agreed to terminate the JV agreement.
Both parties further agreed to discharge all duties and responsibilities within the JV agreement and shall not hold any legal liabilities to each other after the termination of the JV agreement.
Going forward, the group will continue to seek alternative option to continue the exploration and mining project and will provide updates should there be any new development to the proposed exploration and mining of mineral resources project.
The termination of this JV agreement shall not have any financial impact to the group’s financial results ending Dec 31, 2022.
Shares in Hong Lai Huat closed at 6.8 cents on Jan 5.
See also: Sembcorp issues $350 mil of guaranteed notes due 2036 at 3.65%
Photo: The Edge Singapore/ Albert Chua
