The Board of Directors of PESTECH is pleased to announce that PESTECH Sdn. Bhd. ( PSB ), a wholly-owned subsidiary of the Company had on 18 March 2013 received a PO from RSG, an Australian Securities Exchange listed gold mining company, in relation to the engineering, procurement and commissioning of a 225kV high voltage substation for the Syama Gold Mine located in the south of Mali, West Africa. The site is approximately 30 kilometers from the CÑte d'Ivoire border and 300 kilometers southeast of the capital Bamako.
The electricity supply through the substation, to be constructed within the compound of the mines, will replace the onsite diesel generation of power and is expected to significantly lower utility costs for RSG. The power will be delivered from Sikasso to Syama approximately 72 kilometers away from Syama.
The PO is valued at a total of USD2.982 million and it is anticipated to commence by April 2013 and to be completed within 13 months by May 2014. The Company also expects additional order from RSG to construct interconnecting substation of 225kV with Mali's existing grid at Sikasso and another connecting substation at Syama before power could be brought to the gold mine.
This would be major milestone for PESTECH as it breaks through another new market in West African region after the earlier successful project in Ghana.
The PO will have no material effect on the revenue and earnings of the Group for the financial year ending 31 December 2013 but is expected to contribute positively to the future earnings and net assets per share of the Group.
The Company does not foresee any expectional risk other than the normal operational risk associated with the PO such as availability and changes in the prices of raw materials. The Company will take the necessary steps to mitigate the risks as and when it occurs.
None of the Directors and/or Major Shareholders and/or persons connected to them, has any interest, direct or indirect in the PO.
This announcement dated 19 March 2013.