| CAM RESOURCES BERHAD |
| Type | Announcement |
| Subject | OTHERS |
| Description | CAM RESOURCES BERHAD (CAMRES)
- Feed-In Tariff (FIT) Approval granted to Saluran Suriamas Sdn Bhd by the Sustainable Energy Development Authority (SEDA) for the Renewable Power Generation Project
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Reference is made to CAMRES’ announcements made on 11 November 2016 and 16 November 2016 in relation to the Feed-In Tariff (“FIT”) approval granted to the Company’s wholly-owned subsidiary, Saluran Suriamas Sdn. Bhd. (“SSSB”) by the Sustainable Energy Development Authority (“SEDA”) to build and operate a renewable electrical energy power plant with a capacity to supply 7.0 MW per hour of electricity to Tenaga Nasional Berhad for a period of 16 years ("the Project"). Unless otherwise stated, the definitions and terms used herein shall have the same meaning as defined in the earlier announcements.
The Board of Directors of CAMRES wishes to announce that after due consideration and further re-assessment on the feasibility of the Project, SSSB has decided that it will not proceed with the Project and will voluntarily surrender the approved FIT quota for the Project to SEDA.
The decision to cancel the Project is due to the increment on the total investment consideration of the project which has reduced the rate of return on investment and higher investment risk and business risk due to the lack of proven track record and lack of security in long term fuel supply as well as lack of technical expertise.
As the Project has not commenced, the cancellation of the Project is not expected to have any material effect on the earnings per share, net assets per share, gearing, share capital and the substantial shareholders’ shareholdings of CAMRES and its subsidiaries for the financial year ending 31 December 2019.
This announcement is dated 9 October 2019.
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