Merdeka Copper obtains $130m loans

IDX-listed PT Merdeka Copper Gold Tbk has obtained US$130 million loans from a syndication of three international banks to help finance the development of its Bukit Tujuh gold mining project in Banyuwangi, East Java.

Investor Daily quoted Merdeka Copper President Director Adi Adriansyah Soejkri as saying Monday that the three international banks included BNP Paribas Singapore branch, HSBC Jakarta branch, and Societe Generale Asia Ltd Hong Kong branch.

He added that the lending agreement was signed late last week.

As has been previously reported by this portal, Merdeka has agreed to put its subsidiary PT Bumi Suksesindo as collateral for the loans.

BSI holds permit for the Bukit Tujuh concession. According to 2012 JORC, the Bukit Tujuh mine holds ore reserves of 90 million tons in its oxide layer. The project is expected to produce 90,000 ounces of gold and 300,000 oz of silver per year from late 2016 to 2025.

Merdeka raised about Rp 819 billion ($62.1 million) in proceeds from selling 21.7 percent shares via an initial public offering (IPO) in June 2015. The company has so far used about 53 percent of the IPO proceeds. (*)