Ancora obtains $2m loan to finance gold mine acquisition
Tuesday, October 31 2017 - 01:36 AM WIB
IDX-listed PT Ancora Resources Tbk, which among others is engaged in the production of explosives for the mining sector, has obtained loan worth US$2 million to help finance the acquisition of gold and copper mine in Lombok Barat, West Nusa Tenggara Province, Kontan reported on Tuesday.
The paper said that the five-year loan with interest rate of 5 percent was obtained from Dewata Konsultana Sinergi.
Ancora President Director Teddy Somantri was quoted as saying that the company wants to first start gold production at one of the three exploration areas, hopefully in 2019, to provide cash flow for the company to finance development activities in the other areas.
He said that the acquisition of the gold and copper mine forms part of the company?s diversification strategy.
Teddy said that Ancora is currently conducting due diligence process on the acquisition target, and is seeking the required various permits. He added that the company will also either seek banks loans or partners to help finance the development of the mine.
Ancora revealed last month its plan to acquire Singapore-registered Indotan Lombok Pte, which owns 90 percent of PT Indotan Lombok Barat, which holds an IUP business mining permit for the Lombok Barat gold and copper mine. Ancora will acquire the Indotan shares from Southern Arc Minerals. (*)