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(Alliance News) - Asiamet Resources Ltd on Thursday said it has signed a binding share purchase agreement to sell its wholly-owned subsidiary Indokal Ltd to PT Wasesa Indo Nusa for USD163.4 million.
Indokal owns the Kalimantan Surya Kencana work contract including the BKM copper project, located in Central Kalimantan, Indonesia.
The sale price comprises USD10 million in cash, with USD2.5 million upon executive of the deal and USD7.5 million paid on January 31. Another USD40 million in cash will be paid upon the successful initial public offering of PT WIN on the Indonesian Stock Exchange in early 2021. Finally, a 22.5% shareholding in listed PT WIN, paid in two tranches. Asiamet said PT WIN has an estimated equity value of USD500 million.
The Indonesia-focussed copper and gold miner also said that as part of the transaction, PT WIN has agreed to acquire Aeturnum Energy International Ltd's commodities trading business.
Asiamet will continue to manage the Kalimantan Surya Kencana project for up to 12 months following PT WIN's IPO.
"Completion of this transaction with PT WIN and Aeternum paves the way for the advancement of funding and development of the BKM copper project. It strengthens the underlying balance sheet of the company and enables Asiamet to continue growing value for its shareholders. Asiamet also retains a very meaningful stake and continues to provide significant input into the ongoing development and wider exploration upside of the highly prospective Kalimantan Surya Kencana work contract," said Asiamet Resources Chair Tony Manini.
Shares in Asiamet Resources were trading 5.3% lower at 5.68 pence each on Thursday morning in London.
By Ife Taiwo; ifetaiwo@alliancenews.com
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