Hartawan to acquire RI gold miner for S$300m

Singapore ? Catalist-listed Hartawan Holdings Limited, a property management and leasing as well as hospitality group, is transforming its core business after agreeing a proposed acquisition of an Indonesian gold mining group for S$300 million.

On October 29, 2011, Hartawan signed a conditional sale and purchase agreement with Mr Wijaya Lawrence and Mr Ngiam Mia Je Patrick to acquire a 100% stake in Wilton Resources Holdings Pte. Ltd, a Singapore-incorporated investment holding firm.

Pursuant to a restructuring exercise that will be undertaken for the proposed acquisition, Wilton will become a gold mining group that owns two concession blocks in West Java, Indonesia.

?This proposed acquisition gives us an exciting opportunity to transform Hartawan from a property leasing and management and hospitality group into a gold mine owner and producer,? said Executive Chairman of Hartawan Winstedt Chong in a media statement.

The statement added that based on the preliminary information on the quantity of gold reserves and resources in the two concession blocks and the prevailing market price of gold, the company believes this deal is an attractive proposition that has the potential to revitalize the Group?s future financial performance, and enhance both the company and shareholder value.

Concurrent to the signing of the agreement, Hartawan has also entered into a Convertible Loan Agreement with Wilton, and agreed to extend to Wilton a convertible loan of up to S$12 million, which will be payable in two tranches of up to S$6 million each.

The loan is to facilitate and to enhance, among other uses, the building of infrastructure for the extraction of gold ore and mining operations, and a floatation plant for the processing and production of gold at the concession block in West Java.

The completion of the proposed acquisition is subject to fulfillment of certain conditions. These include:
? The preparation and issue of a joint ore reserves committee (JORC) report by an independent qualified person that meets the requirements in the Catalist Rules, stating that the concession blocks have not less than 60 tonnes (equivalent to 2,112,000 troy ounces (oz)) measured and indicated resources of gold. Of this, at least 10 tonnes (equivalent to 352,000 troy ounces) of gold must be classified as Probable and Proved reserves;
? Commencement of gold ore extraction at the concession block in West Java within six months from payment of the first tranche of the convertible loan. In addition, the initial rate of production and mining extraction shall not be less than an average of 600 tonnes of gold ore per day;
? Satisfactory legal and financial due diligence on Wilton and its subsidiaries;
? Approval of SGX-ST; and
? Approval from Hartawan?s shareholders at a general meeting. (romel)