PETALING JAYA: MUI Properties Bhd’s wholly owned subsidiary Cesuco Trading Ltd, will be taking up a 40.73% stake in ASX-listed gold exploration company Nex Metals Explorations Ltd, following the conversion of a A$1.5 million secured convertible note.

In a statement, MUI said Cesuco Trading, its Hong Kong-based investment company, had advised Nex Metals Explorations Ltd of its decision to exercise the share conversion.

“We are excited to take a significant position 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,” said MUI group chairman and CEO Andrew Khoo.

Since August 2018, gold prices have climbed from US$$1,180 per ounce to US$$1,529 in September this year. It is currently trading at above US$$1,450.

Based in Perth, Nex Metals’ gold projects include the Yundamindera and the 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 Limited, another listed mineral exploration company in Australia, to undertake exploratory drilling on nine separate gold mining sites in the Kookynie area.