One Asia undertaking rights issue

By Romel S. Gurky

Australian firm One Asia Resources Limited announced on Wednesday it is undertaking a rights issue to fund its contribution to the Pani Project Joint Venture, continue work on the Awak Mas project and fund working capital progressing its goal of becoming a successful gold mining company in Indonesia.

One Asia has recently signed a Memorandum of Understanding (MoU) with Provident Capital Partners (Provident) to establish a joint venture on the Pani Project. The purpose of this arrangement is to resolve the current Pani IUP dispute and One Asia believes Provident are well credentialed to bring about a successful conclusion. One Asia will retain a 33.3% working interest in the JV company.

The offer is underwritten for $2,411,287,raising up to $2,592,444 by way of renounceable rights issue with 1 new share for every 9 shares held. A number of shareholders including Lion Selection Group Limited (Lion) and Macquarie Bank Limited have entered agreements with the Company to take up their entitlements, with further commitments from investors including Mr Gavin Bradley and Lion to meet any shortfall in the Rights Issue. Underwriters to this offering will receive a 5% underwriter fee payable in stock.

In March 2015, One Asia completed a revised PFS for the Awak Mas Project, supporting the completion of a Bankable Feasibility Study.

Editing by Johannes Simbolon