Northern Mining plans to acquire RI mining firm

By Romel S. Gurky

ASX-listed Northern Mining Limited announced Thursday that its wholly-owned subsidiary, NMI Limited (NMI), has entered into a non-binding Heads of Agreement (HOA) under which it has reached an agreement in principle to investigate the acquisition of a 90 percent interest in the business of PT Bintang Cipta Persada (BCP), a mining company incorporated in Indonesia.

The HOA is non-binding. NMI is to complete its due diligence investigations and enter into a Conditional Sales and Purchase Agreement (CSPA) upon satisfactory of the due diligence investigations and obtaining governmental regulatory approval, the company said in a statement.

?NMI will endeavor to complete the due diligence within 6 months from the signing of the HOA. The purchase consideration is to be negotiated and is subject to further discussion and advice,? the statement said.

BCP holds a number of mining concessions in minerals such as gold, coal and nickel in Sumatra and Balikpapan in Kalimantan Province. BCP is highly experienced in the identification of high quality mineral assets in Indonesia.

Northern Mining hopes that through this acquisition, it will be able to develop a portfolio of world-class resource projects in Indonesia.

BCP also owns and operates a new Liquefied Petroleum Gas ?LPG) filling station in East Java. This LPG business unit forms an insignificant part of the main undertaking of BCP, although it has potential for further development.

Editing by Reiner Simanjuntak