KUALA LUMPUR: Minetech Resources Bhd rose over 3% in early trade Tuesday following its announcement to expand into renewable energy (RE) and the oil and gas (O&G) sectors.

       The mining group gained 3.45%, or 0.5 sen to 15 sen with 2.5 million shares done.

       At its EGM yesterday, Minetech shareholders approved its resolution on a proposed private placement, amendments to the constitution, reduction of share capital to fund the business expansion, as well as diversifications into the new sectors.

       Minetech is expected to raise proceeds amounting to approximately RM85.1mil through the proposed private placement and irredeemable convertible preference shares (ICPS).

       “The approval of the proposed private placement and ICPS will allow us to shift our gearing into the renewable energy and oil & gas sectors, which we have identified as potential revenue generators that could potentially contribute 25% or more to our net profit,” executive chairman Pengiran Datuk Awang Daud Awang Putera said.

       Minetech is currently actively exploring business opportunities in the O&G sectors which includes tendering for several O&G related projects.

       In March this year, Minetech had been registered as a solar photovoltaic Investor with the Sustainable Energy Development Authority Malaysia (SEDA).

       Under SEDA’s Net Energy Metering Programme or NEM3.0, Minetech will be able to sell electricity to government agencies, businesses, as well as individuals.