KUALA LUMPUR: MUI Properties Bhd wholly-owned Cesuco Trading Ltd (CTL) will convert an A$1.5 million secured convertible note in an Australian gold exploration company into ordinary shares.

In its filing with Bursa Malaysia, MUI Properties said CTL, its Hong Kong-based investment company, had informed Nex Metals Explorations Ltd of its decision on the conversion.

MUI group chairman and chief executive officer Andrew Khoo said it was timely to invest more in the gold exploration industry in Australia.

“Having taken into account all underlying factors, we feel the time is right to invest in this sector, which has vast potential,” he said.

Based in Perth, Nex Metals is primarily engaged in gold exploration.

Its gold projects include the Yundamindera and Kookynie mining leases, covering a total area of 6,746 hectares in the north-eastern goldfields of Western Australia.

This year, Nex Metals entered into a farm-in agreement with Metalicity Ltd, another listed mineral exploration company in Australia, to undertake exploratory drilling on nine separate gold mining sites in the Kookynie area.

According to Metalicity’s latest announcement in October, the last three holes follow-up programme reaffirms the excellent exploration potential of the Kookynie Gold Project.

Following the release of further test results last month, Metalicity managing director Jason Livingstone, in a statement, said the intercept at Leipold indiacted that the high-grade nature was possible in these structures.

Following the results from the preliminary nine drill holes, further drill programme is planned to determine gold grade and obtain a more comprehensive mineral resource estimate.