Bumi makes all-cash offer to buy Herald Resources

Indonesia Stock Exchange-listed mining house PT.Bumi Resources announced on Wednesday its intention to make an all cash offer of A$2.25 per share for all the shares in the ASX-listed mining firm Herald Resources Limited.

Bumi?s offer values Herald?s equity at approximately A455 million on fully diluted basis.

Herald?s main asset is the undeveloped Dairi Lead/Zinc underground mining project in North Sumatra, which had been slowed down due to lack of permit from Ministry of Forestry.

Bumi Chairman Ari Hudaya said the all cash offer would be attractive Herald shareholders.

?The Dairi project is yet to formally move to development stage and will require further substantial funding as well as be subject to a number of significant regulatory requirements and development and operational risk,? he said.

?Bumi?s experience in the Indonesian mining sector and the requirements of Indonesian regulatory process make it uniquely to advance the Dairi development project in an efficient and timely way.?

Herald, together with its 20 percent partner PT Aneka Tambang Tbk, is planning to develop Dairi zinc/lead project to process 1 million tons of ore per annum and to produce between 220,000 and 100,000 tons of zinc and lead concentrates annually.(alex)