Nusantara has secured a strategic Indonesian cornerstone investor with funds raised to help advance the Awak Mas Gold Project, following the completion of a Definitive Feasibility Study.
On completion of a A$10.25 million capital raising, PT Indika Energy Tbk (Indika), through its wholly owned subsidiary PT Indika Minerals Investindo, will obtain a 19.9 per cent interest in Nusantara, and existing shareholder, AustralianSuper Pty Ltd, will raise their shareholding to 14 per cent.
Nusantara's major shareholder, Lion Selection Group (ASX:LSX, holding 32.32 per cent) fully supports the placements to Indika and AustralianSuper.
Indika and AustralianSuper will also be issued options on a one for two basis pro-rata to their share subscriptions. The options will be exercisable at A$0.35 on or before 30 November 2020.
The A$10.25 million will be applied by Nusantra to advance the development of the Awak Mas Gold Project through further optimisation studies, near-mine exploration, preparatory work for project construction, advancing project financing and for general working capital.
Commenting on the Indika investment and strategic relationship, Nusantara Managing Director, Mike Spreadborough, said that the Nusantra Board welcomed Indika as a shareholder.
“Indika’s investment in Nusantara is a significant milestone in progressing the project and demonstrates the value of this low-cost, long-life gold project and its exceptional exploration potential,” said Mr Spreadborough.
“Indika brings a wealth of Indonesian operating experience through its extensive resources and energy activities across Indonesia, and we look forward to the ongoing support and advice of Indika’s highly credentialed Board of Commissioners and Board of Directors as we accelerate and assess avenues for the development of the Awak Mas Gold Project during 2019.”
Indika’s Managing Director & Chief Executive Officer, Azis Armand, said that the investment was an important first step towards Indika’s diversification strategy into other mining sectors.
“We are excited to be part of Nusantara Resources and as a local partner, we look forward to working together with management to unlock the potential of the Awak Mas Gold Project,” Mr Arman said.
“We have identified gold as a strategic sector and are privileged to enter into this partnership as the project gets closer to its construction and production stage.”