One Asia signs MoU with Provident on Pani gold project
Monday, May 11 2015 - 08:29 AM WIB
Australian firm One Asia Resources Limited (One Asia) announced on Monday it has signed a Memorandum of Understanding (MOU) with Provident Capital Partners Pte Ltd which provides for the establishment of a Joint Venture on the Pani Gold Project.
The joint venture will see One Asia?s interests in the Pani IUP transferred into a special purpose vehicle (SPV) along with a commitment of US$4 million cash from each of One Asia and Provident, with the ultimate ownership of the SPV being 66.6% Provident and 33.3% One Asia.
Detailed agreements need to be established with respect to the operation and management of the joint venture, however the MOU provides for arrangements typical of joint venture conditions including representation on the Joint Venture board by One Asia and pro rata funding rights.
The purpose of this arrangement is to resolve the current Pani IUP dispute dating back to December 2013, working in co-operation with the KUD Dharma Tani Marisa (KUD) and the local community to develop the Pani Project.
One Asia believes Provident are well credentialed to bring about a successful conclusion, and Provident have been actively assisting One Asia for some time leading up to the execution of the MoU. One Asia sought to work with Provident on Pani due to their extensive Indonesian experience and networks which will be invaluable in resolving the Pani IUP dispute and ultimately developing the project.
Provident was founded by Winato Kartono, Hardi Wijaya Liong and Gavin Caudle in 2004 and is a private Indonesian company with investments across a variety of industries including; Telecommunications, Agriculture, Mining, Oil & Gas and Real Estate. Most notably, Provident has founded and is a substantial shareholder in two prominent listed companies in Indonesia, namely; PT Tower Bersama Infrastructure (30% ownership, market capitalization of $3.5bn) and PT Provident Agro (43% ownership, market capitalization of $300m). Provident also has substantial holdings in ASX listed emerging mining companies; Sumatra Copper & Gold, Finders Resources and Sihayo Gold. Provident has a close working relationship with an extended network of leading Indonesian businessmen who provide further financial capabilities and outstanding connections.
Editing by Johannes Simbolon