VCI Global Provides Preliminary Funding for Saudi Project
KUALA LUMPUR, Malaysia, May 15, 2024 (GLOBE NEWSWIRE) - VCI Global Limited (NASDAQ: VCIG) (“VCI Global”, “VCIG”, or the “Company”), is pleased to announce plans to facilitate the Capital Raising of no less than US$210 million for Magnum Mining & Exploration Limited (ASX: MGU) (“Magnum”) through its subsidiary, V Capital Consulting Limited (“VCCL”).
The agreement with VCCL and 2x1.Digital Private Limited (“2x1.Digital”) is to undertake a capital raising of no less than US$210 million (“Capital Raising”) to advance Magnum's Green Pig Iron Project (the “Project”) in Saudi Arabia. Magnum is to receive no less than US$10 million as working capital, and the remaining amount, no less than US$200 million, is to be provided as 50% of the capital for the Midmetal HIsmelt plant. The remaining 50% funding for the Midmetal HIsmelt plant will be matched by the Saudi Investment Development Fund (“SIDF”). Investors participating in the Capital Raising will receive fully paid ordinary shares in Midmetal in proportion to their participation in the Capital Raising up to a total aggregate interest in Midmetal of 50%; and, subject to Magnum's shareholder approval, fully paid ordinary shares in Magnum in proportion to their participation in the Capital Raising up to a total aggregate interest in Magnum of 19.99%.
Magnum and Middle East for Metallic Industrial (“Midmetal”) have entered into a project funding agreement (“PFA”) with VCCL and 2x1.Digital, under which VCCL and 2x1.Digital will use their best endeavors to complete the Capital Raising to fund the building of a HIsmelt plant in the Kingdom of Saudi Arabia (KSA) that will see the planned production of Green High Purity Pig Iron by Midmetal. Midmetal, the vehicle for the Project, is 50% owned by Magnum. Midmetal has secured certification for funding of up to 50% of the costs of the Project from the KSA Government, through SIDF.
Under the PFA, and on its successful completion, VCCL and 2x1.Digital will each receive 10% of Midmetal's ordinary shares. 2x1.Digital will also have the right to receive a position on the Board of Magnum. The PFA is binding for a term of four months, renewable by the mutual agreement of the parties.
“Through VCCL, we are proud to support Magnum in their pursuit of sustainable innovation within the mining and exploration industry. This partnership exemplifies our commitment to fostering growth and advancing transformative projects in the global market,” said Dato' Victor Hoo, Group Executive Chairman and Chief Executive Officer of VCI Global.
About VCI Global Limited
VCI Global is a diversified holding company. Through its subsidiaries, it focuses on consulting, fintech, AI, robotics, cybersecurity, and gamification. Based in Kuala Lumpur, Malaysia, our main operations are centered in Asia, with significant visibility across Asia Pacific, the United States, Europe, and the Middle East. VCIG primarily offers consulting services in capital markets, real estate, AI, and technology. In technology businesses, the company operates a proprietary financing platform that serves companies and individuals, as well as a secured messaging platform serving governments and organizations. We also invest, incubate, accelerate, and commercialize businesses and technologies in AI, robotics, and gamification.
For more information on the Company, please log on to https://v-capital.co/.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements that are subject to various risks and uncertainties. Such statements include statements regarding the Company's ability to grow its business and other statements that are not historical facts, including statements which may be accompanied by the words “intends,” “may,” “will,” “plans,” “expects,” “anticipates,” “projects,” “predicts,” “estimates,” “aims,” “believes,” “hopes,” “potential” or similar words. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including without limitation, the Company's ability to achieve profitable operations, customer acceptance of new products, the effects of the spread of Coronavirus (COVID-19) and future measures taken by authorities in the countries wherein the Company has supply chain partners, the demand for the Company's products and the Company's customers' economic condition, the impact of competitive products and pricing, successfully managing and, general economic conditions and other risk factors detailed in the Company's filings with the United States Securities and Exchange Commission (SEC). The forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake any responsibility to update the forward-looking statements in this release, except in accordance with applicable law.
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