Nusantara Resources plans to raise up to A$20 million via an IPO on the ASX with funds to support development of the Awak Mas Gold Project in Sulawesi, Indonesia. Nusantara is the result of a demerger of the Awak Mas project from unlisted Sydney company One Asia Resources.
The new company has already received firm commitment to raise A$13 million, including $4.5 million from Lion Selection Group, which will give the resource investment house around 30-33% of the stock. The company plans to list by the end of July.
Nusantara owns 100% of Awak Mas under a 7th Generation Contract of Work (CoW) covering an area of 14,390 hectares. Permitting for project construction is advancing.
The South Sulawesi Provincial Government has approved an Environmental Impact Statement (AMDAL) and Nusantara is preparing the application to move into the CoW Construction Phase.
A new geological model has been developed from reappraisal of geological data, including some of the 1000 historic drill holes stored at site.
There is a JORC-compliant 1.74 million ounce mineral resource, as estimated by Cube Consulting in April 2017, and an additional exploration target of 300,000-500,000 ounces. Broad continuous zones of mineralisation have been defined at Awak Mas deposit over a 1.7km x 1km area. There are also two satellite resources at Salu Bulo and Tarra, and a 10km regional trend.
Extensive technical evaluation work since 1991 by a succession of international exploration and development companies has provided an enhanced launching point for completing a definitive feasibility study (DFS), which the company hopes to undertake in 2018.
An 8050-metre drill program is planned for 2017 to improve resource confidence and increase drill density in extensions of the known resource. Further drilling is also planned to test extensional and regional targets.