BlackGold Natural Resources has signed a share placement agreement with Johanes Budisutrisno Kotjo who intends to purchase almost 40 million shares for gross proceeds of up to S$3.56 million. The Indonesia-focused coal company intends to use the entire net proceeds for general working capital.

The rationale for the placement is to strengthen the working capital position of the group after BlackGold recently secured long-term coal sales to two large state-owned enterprises in Indonesia.

Mr Kotjo has been a consultant of the company since March 30, 2016. Having entered into his first resources venture in 1994 with a major mining player, Robert Friedland, he brings along more than 23 years of experience in the mining and energy industries, and has held various key roles in companies within the mining and energy sectors, including president commissioner of IDX-listed Apac Citra Centerfex from 1995 to 2015.

BlackGold group’s executive director and chief executive officer Philip Rickard said, “We are honoured to have such a successful entrepreneur on board as our new shareholder. The placement accentuates investor confidence in our future. The group is heartened by Mr Kotjo’s confidence and participation, and is committed to continue delivering long-term value to our shareholders.”

The sponsor of the company, SAC Advisors Private Limited, will make an application to the SGX-ST for the dealing in, listing and quotation of the placement shares on Catalist of the SGX-ST.

BlackGold is targeting Indonesia’s rapidly-growing power plant industry. Through its local subsidiaries, the group has the rights to three coal concessions in Riau, Indonesia. Currently, through its subsidiary PT Samantaka Batubara, the group has total JORC-compliant coal resources of over 200 million tonnes.