KUALA LUMPUR (July 17): Sabah-based gold mining group Bahvest Group Bhd said its wholly-owned subsidiary, Wullersdorf Resources Sdn Bhd (WRSB), has lodged a police report to investigate any possible element of fraud on the letter of demand issued by its mining lease land owner.

Bahvest had received the letter of demand from Southsea Gold Sdn Bhd on May 2, seeking RM20.4 million for alleged wrongful occupation and trespass into the lease land in Tawau.

In a bourse filing on Monday (July 17), Bahvest said WRSB has also requested the police to investigate the subsequent payment of RM6 million to Southsea Gold, which is controlled by Bahvest's founder and former chief executive officer Datuk Lo Fui Ming.

The group added that WRSB had recently discovered a letter dated Sept 18, 2015 from Southsea, consenting to WRSB utilising part of the master title land for the purpose of WRSB’s mining operation including storage of tails and locating site facilities.

Based on the letter, WRSB is further permitted to make use of such road constructed or to be constructed on the master title land for the purpose of access to the mining land.

“Such usage of land and road access shall be free of any payment whatsoever from WRSB for the duration of the sub-lease period,” it said.

Bahvest shares closed two sen or 8.33% higher at 26 sen on Monday, valuing the group at RM322.34 million.

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