Macquarie to provide $150m for Pani Project

By Ruli Setiawan

ASX-listed One Asia Resources Ltd announced on Wednesday it has mandated Macquarie Bank Limited (MBL) to provide up to US$150 million of capital to fund the development and all associated costs of the Pani Gold Project in Sulawesi.

OAR?s Managing Director and CEO, Stephen Walters, said ?We believe the mandate provides a clear path to delivery of the US$150 million in finance facilities for the further development of the Pani Gold Project and we look forward to working with Macquarie on a definitive financing package. Pani will be a significant new investment in the Indonesian mining sector and one of the first gold projects financed under the new Indonesian mining laws.?

On Dec.29, 2013 OAR advised that the KUD Dharma Tani (KUD) had signed a Memorandum of Understanding with a subsidiary of publicly listed Indonesian company PT J Resources Asia Pasifik in relation to the mining license at Pani in Pohuwatu Regency, Gorontalo Province, the Pani Project. OAR reiterates that the KUD is still bound under the terms of the agreements with OAR, and OAR staff and personnel are at the Pani site conducting ongoing activities.

OAR is taking all actions necessary to protect and enforce its interest in the Pani Gold project under the existing agreements with the KUD, which remain in full force. OAR remains committed to developing the Pani Gold project, and continuing to work with and support the local community as it has in the past. Upon a successful resolution, OAR, with the support of MBL, will move to develop the Pani site for gold production activities in line with existing plans, which will deliver substantial benefits to the local community around the Pani Gold Project and the Gorontalo Province.

Editing by Johannes Simbolon