Merdeka to start gold production in Q4 2016
Friday, June 12 2015 - 01:39 AM WIB
Gold mining company PT Merdeka Copper Gold plans to start production at the Tujuh Bukit gold and copper project in Banyuwangi, East Java, in the fourth quarter of next year.
?The plan is (for production to start) in the fourth quarter of 2016,? said Leona Karnali, General Manager for Investor Relations and Risk Management at Saratoga Group, the parent of Merdeka, which plans to offer 12 percent of its shares to the public via initial public offering (IPO) scheduled for June 15. The company is expected to raise about US$63 million in proceeds from the IPO.
Leona said that Merdeka is currently preparing the construction stage at the Tujuh Bukit Project, which is targeted to have annual gold output of 900,000 troy ounces and copper output of 1 million troy ounces.
Meanwhile, President Director Adi Adriansyah Sjoekri said that as the IPO proceeds are lower than the initial projection due to weaker market response amid the current downturn in global mining sector, the company will seek loan facility worth US$80 million to $100 million to help finance its gold project. He said that a number of domestic and foreign banks have made commitment to provide the loan.
Editing by Reiner Simanjuntak