Indika, Barito eye Indo Muro Kencana

Local investors Indika Group and Barito Group have expressed interest to acquire the gold reserves of debt-troubled gold mining firm PT Indo Muro Kencana (IMK), a local unit of ASX-listed Straits Resources Ltd, which operates a gold concession in Murung Raya Regency, Central Kalimantan.

IMK official William Eduard Daniel was quoted by Kontan as saying Monday that the two investors made an offer of 10-25 percent of the total debt of US$75 million. He added that Indika and Barito will conduct due diligence process.

William said that with the offers made by the two investors, there is now a total of five investors which have expressed interest in acquiring the IMK asset including a hedge fund management association from New York, a company from China, and Indonesian firm PT Kasongan Bumi Kencana of the Gajah Tunggal Group.

William said that the winning bidder is expected to be announced on November 30, 2014. (*)