BlackGold to acquire gold mine in RI
Thursday, August 20 2015 - 04:33 AM WIB
SGX-listed BlackGold Natural Resources Limited seeks to diversify beyond coal amid the current industry downturn as it plans to acquire an operating gold mine in Indonesia.
BlackGold announced Thursday that it had signed a non-binding term sheet with GainCapital Group Pte Ltd and Terrence Timothy Tyler for the proposed acquisition of the entire issued shares of Ensbury International Limited for an indicative purchase price of US$100 million.
BlackGold said it has taken steps to strengthen its mining operations in Indonesia as part of its efforts to seize business opportunities in this fast-growing market.
The firm said the indicative purchase price was arrived at, after arm?s length negotiation, on a willing-buyer willingseller basis, subject to the minimum valuation, and shall be satisfied by way of cash and/or allotment andissuance of new ordinary shares in share capital of the company. Following thesigning of the Term Sheet, the company said it will commence its due diligence on the target group.
?The proposed acquisition is in line with the company?s intention to expand our commodities business horizontally and we are exploring opportunities presented by existing operating assets which may potentially bring instant stream to our revenue portfolio. To date we have successfully locked various off-take contracts for our coal commodity whereas gold produced bythe target group can be sold directly to Antam (Indonesia?s state-owned naturalresources based company)?, explained by Philip Rickard, Chief ExecutiveOfficer of the company.
The target company is an investment holding companyincorporated in British Virgin Islands. The target group comprises EnsburyKalteng Pte Ltd (an investment holding company incorporated in Singapore) and PT Ensbury Kalteng Mining (a company incorporated in Indonesia which is primarilyengaged in the business of gold mining).
PT Ensbury Kalteng Mining currently holds five (5) mining concessions over mining blocks measuring in aggregate 21,110 hectares(collectively, the assets) located in Central Kalimantan, which comprise (a)a block covering a total area of 1,716 hectares (the Pangkut Block) which hasbeen in production since 2011; and (b) four (4) blocks covering a total area of19,394 hectares which are currently under feasibility study. The blocks in the assets are under a 6th generation Contract of Work with the Government ofIndonesia.
Editing by Reiner Simanjuntak