MSWG Weekly Newsletter 19 May 2023 (English)

Troubles brewing at Bahvest

Trouble is brewing at Sabah-based mining company Bahvest Resources Berhad after a private company owned by its managing director and chief executive officer filed a letter of demand (LOD) to the listed entity for trespassing into a concession area that the private company owns. This is on top of a string of investigations and material litigations to deal with.

The LOD is seeking RM20.4 million in compensation from Wullersdorf Resources Sdn Bhd (WRSB), a 100% subsidiary of Bahvest, for wrongful occupation of the mining land belonging to Southsea Gold Sdn Bhd (SGSB) for the period between September 2017 and April 2023. At the same time, SGSB demanded that WRSB vacate and move all operations out of SGSB’s mining lease land within 30 days from the date of LOD. SGSB has subleased 317.7 ha of land to WRSB since 2017 at RM60,000 per annum for 33 years.