Antam to cut stake in Canada-listed unit to 19.9 percent; clear debt: Report
Friday, May 10 2002 - 10:10 AM WIB
IAR will return to Antam its 99.99 percent Indonesian-held operating unit, PT Antam Resourcindo, which runs the gold and silver Cikidang underground mine in West Java and holds 11 tenements to conduct gold exploration.
Antam had transferred these assets to IAR in 1997 as part of a cashless deal to acquire the 81.9 percent stake in IAR, which is listed on Vancouver's TSX Venture Exchange.
"There is a signed letter but there's no definitive agreement yet (on IAR's restructuring)," Antam investor relations manager Cameron Tough was quoted as saying by the newswires.
A statement issued in Vancouver by IAR states it has agreed to a major corporate restructuring with Antam which will result in the cancellation of 10.8 million shares held by Antam.
"Upon completion of the transaction, the company (IAR) will have approximately 3.1 million shares outstanding, Antam's ownership of the company will be reduced to 19.9 percent and the company will have a cash balance of approximately CA$1.4 million and no material liabilities," the statement said.
It said the assets to be transferred back to Antam, excluding PT Antam Resourcindo, are valued at around CA$660,411 , according to an independent valuation report prepared by Snowden Mining Consultants.
The cashless deal is subject to due diligence by Antam and a definitive agreement to be approved by Antam's shareholders and an independent committee of IAR's board of directors.
Because it is a "related party transaction', the deal is also subject to approval from the TSX Venture Exchange, minority shareholders at a meeting scheduled for June 24, and any other required approvals, IAR said.
IAR said it has appointed independent financial advisors to determine whether or not the consideration to be paid by Antam is fair. (*)