Nusantara receives minimum IPO subscription of $15m

Australia?s One Asia Resources Limited (One Asia) said that its gold mining subsidiary Nusantara Resources Ltd has received subscriptions and firm commitments in excess of A$15 million for an upcoming initial public offering (IPO), meeting one of the conditions of its offer.

The company said in an update statement of the IPO issued last week that this includes a recent commitment to invest $1.5 million from a subsidiary of Zhaojin Mining Industry Company Limited (Zhaojin), a leading gold producer listed on the main board of the Stock Exchange of Hong Kong Limited. Zhaojin?s commitment follows the cornerstone commitments by ASX-listed Lion Selection Group Limited of $4.5 million and AustralianSuper of $3.9 million.

Nusantara is launching an IPO and seeks to list shares on the ASX hoping to raise between $15 million and $20 million in proceeds to help finance the development of its gold asset in Indonesia. Admission to the ASX is currently anticipated for late July or early August 2017 following the IPO closing date of July 18.

Nusantara is a result of spin off from parent company One Asia Resources with asset comprising Awak Mas Gold Project in South Sulawesi. Nusantara holds a 100 percent beneficial interest in the Awak Mas Project via a 7th Generation Contract of Work (CoW) through its wholly owned subsidiary PT Masmindo Dwi Area. Total JORC Resource at the Awak Mas Project currently stands at 1.74 million ounces of gold.

Elsewhere, One Asia said that the status of permitting at the Awak Mas Gold Project in Sulawesi, Indonesia has advanced, with all necessary approvals received from the Government of Indonesia for advancing the Contract of Work (CoW) into the Construction Period. The CoW allows for a three-year construction period followed by a 30‐year operating period.

Subject to a successful demerger and IPO, One Asia said shareholder will receive one Nusantara share by way of an in‐specie distribution for every three One Asia shares held. One Asia shareholders will also be able to apply for additional shares in Nusantara as part of the IPO. Anyone considering investing should read the Nusantara prospectus in its entirety before deciding whether to do so. Applications can only be made via the application form accompanying the Nusantara prospectus, available at www.nusantararesources.com.

Nusantara has assembled an experienced board and management team with a corporate strategy focused on the development of the Project. The immediate focus is to advance resource drilling and technical work for a Definitive Feasibility Study (DFS) leading to a final investment decision in midlate 2018.

Nusantara?s Managing Director, Mike Spreadborough, commented: ?These two important milestones pave the way for Nusantara?s ASX listing and the commencement of feasibility study activities to advance the Awak Mas Gold Project towards production. With a 1.74 million ounce resource1 and enormous upside for additional discoveries combined with access to grid power, Awak Mas has the potential to be a highly profitable and long life gold mining development.?

Editing by Reiner Simanjuntak