KUALA LUMPAR, Oct 14 Asia Pulse - Kim Loong Resources Berhad (KLRB)announced Wednesday that it had entered into a joint venture with Dr GeePing Tou to cooperate on the construction of a Laboratory Plant.

The laboratory will be used to conduct experiments for the manufacture oftocotrienol concentrates with a high proportion of Delta-tocotrienol andlow Alpha-tocopherol extracted from crude palm oil, KLRB said in astatement to Bursa Malaysia.The products will be manufactured and processed based on the technologydeveloped by Dr Gee.

KLRB holds a 70 per cent stake in the venture, while Dr Gee holds theremaining 30 per cent.

The benefits of the partnership include the utilisation of the excesssteam and electricity from the existing mill in Kota Tinggi and thediversification of high value-added palm oil by-products

The project will also qualify for pioneer status and may enjoy a maximumtax exemption of 100 per cent.

KLRB will make an interest free loan of RM1,400,000 (US$368,000) to PalmNutraceuticals Sdn. Bhd. (PNSB), a wholly owned subsidiary of KLRB, tofinance the Laboratory Plant and working capital.

KLRB will provide a further interest free loan of RM3,600,000 to PNSB andprocure a loan from financial institutions of RM1,500,000 to finance thePlant and working capital.

In the event of failure to obtain the loan, KLRB will provide additionalloans at interest calculated at the Base Lending Rate of Malayan BankingBerhad plus one per cent per annum compounded monthly.

ASIA PULSE