Jakarta – PT Indika Energy Tbk (IDX: INDY) through its subsidiary PT Indika Mineral Investindo (both referred to hereinafter as “Indika Energy”) announced today that it has made a strategic investment in Nusantara Resources Limited (“Nusantara” listed on the Australian Stock Exchange under the ticker symbol: NUS).
The transaction has a total value of A$7.68 million and will be completed in two tranches. For the first tranche, Indika Energy signed a Subscription Agreement (“Agreement”) with Nusantara to subscribe to 30.6 million shares of Nusantara at the price of A$0.23 per share, with a transaction value of approximately A$7.04 million. Post Completion of the placement, Indika Energy will become a 19.9% shareholder in Nusantara. The investment is part of Indika Energy’s intention to continue to diversify earnings while providing
In the second tranche, which is subject to Nusantara’s shareholder approval, Indika Energy will subscribe to an additional 2.8 million shares (of the total of 14 million shares to be issued) at A$0.23 per share (totaling A$0.64 million) which will result in Indika Energy maintaining a 19.9% share in Nusantara.
In addition, Indika Energy and the existing shareholders will be issued options on a pro-rata
Indika Energy welcomes the opportunity to invest in Nusantara, “We are excited to be a partner in Nusantara Resources. As a local partner, we look forward to working together with the existing management to unlock the potential of the Awak Mas Gold Project. We have identified gold as a strategic sector and feel privileged to enter into this partnership as the project gets closer to its construction and production stages. This investment is an important first step towards our diversification strategy into other mining sectors.” said
The Awak Mas Gold Project offers promising prospects with an estimated 1.1 million ounce ore reserve and 2 million ounce mineral resource in South Sulawesi. Nusantara Managing Director, Mike Spreadborough, said, “The Board of Nusantara welcomes Indika Energy as a shareholder and looks forward to the contribution Indika Energy will make to exploring avenues for the financing and development of the Awak Mas Gold Project. Indika Energy’s investment in Nusantara is a significant milestone in progressing the project and demonstrates the value of this low cost, long life gold project and its exceptional exploration potential.”
ABOUT INDIKA ENERGY
PT Indika Energy Tbk. (”Indika Energy”) is Indonesia’s leading integrated energy company through its strategic investments in the areas of Energy Resources – coal production (PT Kideco Jaya Agung, PT Multi Tambangjaya Utama, PT Mitra Energi Agung); gold production (Nusantara Resources Limited), coal trading (Indika Capital Investment), Energy Services – EPC – oil & gas (PT Tripatra Engineers & Constructors, PT Tripatra Engineering); EPC – contract mining (PT Petrosea Tbk (IDX: PTRO).); information, communications and technology (PT Indika Digital Teknologi) and Energy Infrastructure – marine transportation, ports & logistics for bulk goods and natural resources (PT Mitrabahtera Segara Sejati Tbk. (IDX: MBSS), PT Sea Bridge Shipping, PT
Nusantara is an ASX-listed gold development company with its flagship project comprising the 1.1