Gold miner eyes $350m from IPO
Wednesday, November 12 2014 - 04:37 AM WIB
Indonesian gold miner PT Archi Indonesia is planning to list its shares at the Indonesian Stock Exchange next month, reaping fresh funds of around US$350 million, which will be used to pay for debts and to finance acquisition.
According to the company?s prospectus, proceed from the IPO will be used to pay $216.2 million to Archipelago Resources Plc, which will mature on December 30, 2014 and $35.9 million will be used to acquire PT Smart Mining Resources.
Archi Indonesia, Archipelago Resources and Smart Mining Resources (SMR)are controlled by controlled by tycoon Peter Sondakh. SMR has 55% stake at Wonogiri copper and gold project in Central Java. The project has completed scoping study in April this year with positive result, according to the prospectus.
Archi Indonesia plans to sell up to 43 percent of its shares to public.
Archi currently has 100 percent shares in two producing gold mine in North Sulawesi, namely PT Meares Soputan Mining and PT Tambang Tondano Nusajaya. In 2013, both mines produced 152,000 ounces of gold equivalent in 2013.
The company also has 35% stake in ASX-listed mining firm Augur Resources Limited, which in turn has 45% stake at Wonogiri copper and gold project. When acquisition is completed, Archi will effectively control 70% stake at Wonogiri project.