Taung gold acquires Minex Resources

By Romel S. Gurky

Hong Kong-listed Taung Gold International Limited announced Monday it has entered into an agreement to acquire 100 percent equity interest in Minex Resources Pte Ltd for a total consideration of US$28 million. Minex is a private, Singapore incorporated company with interests in two gold concessions in North Sulawesi.

Taung said in a statement that upon completion of the proposed acquisition, the company will directly hold a 100 percent equity interest in Minex and indirectly hold a 95 percent equity interest in Indonesian company PT Bolmong Timur Primanusa Resources (PTBTPR) and will indirectly hold a 75 percent equity interest in PT Rihendy Tri Jaya (PTRTJ) upon PTRTJ PMA (foreign investment scheme) conversion.

As a result of the proposed acquisition and upon PTRTJ PMA conversion, PTBTPR and PTRTJ will become non-wholly owned subsidiaries of the company, Taung said.

Completion of the proposed acquisition and the further undertakings will increase the company?s mineral resources and will provide the company with an opportunity to commence production of gold and cash flow generation in the near term.

?The board believes that the acquisition complements the company?s existing portfolio of South African assets and provides a foothold in the North Sulawesi, a well-established and recognized gold producing region. Furthermore, the sellers have agreed to collaborate with the company over a period of three years to grow and develop its presence in North Sulawesi as the company continues to build up a meaningful portfolio of gold mining operations covering exploration, development and production stage assets,? the company said, but did not disclose the identity of the sellers.

Editing by Reiner Simanjuntak