Merdeka signs $25m lending deal with Pierfront Capital
Wednesday, September 7 2016 - 03:05 PM WIB
IDX-listed gold mining company PT Merdeka Copper Gold Tbk said on Wednesday it had on September 5 signed a US$25 million lending agreement with creditor Pierfront Capital Mezzanine Fund Pte Ltd.
Merdeka said in a statement that of the total lending facility, $10 million will be used to cover cost overrun in the development of oxide gold project at its Tujuh Bukit concession in Banyuwangi, East Java.
It added that another $15 million will be used to help finance the development of porphyry copper/gold project.
PT Bumi Suksesindo, a subsidiary of Merdeka, owns the Tujuh Bukit concession. According to 2012 JORC, the Tujuh Bukit 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 or early 2017 to 2025.
Editing by Reiner Simanjuntak