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CORPORATE ACTION

Ancora set to acquire West Lombok mine

Friday, 03 November 2017 | Wahyu Tri Rahmawati

KONTAN.CO.ID - JAKARTA. Publicly listed mining and energy services firm PT Ancora Indonesia Resources aims to seal a deal worth US$2 million this month to take over the West Lombok gold and copper mine in West Nusa Tenggara from Canadian mineral exploration company Southern Arc Minerals (SAM).

Ancora obtained approval from its shareholders on Monday to acquire SAM’s Singaporean subsidiary Indotan Lombok Pte Ltd, which controls a 90 percent stake in the Jakarta-based PT Indotan Lombok Barat Bangkit (ILBB).

ILBB holds the exploration permit for the West Lombok mine, which reportedly has inferred gold resources of 1.49 million ounces, silver resources of 1.82 million ounces and 397.3 million pounds of copper.

“The acquisition value will be worth $2 million. The seller [SAM] will then hold a 3 percent royalty on the net smelter return [of the West Lombok project] with a buyout option worth $2 million,” Ancora president director Teddy Kusumah Somantri said recently in Jakarta.

Local firm PT Dewata Konsultama Sinergi is set to provide a $2 million loan, which will mature in five years with an annual interest rate of 5 percent, to finance Ancora’s acquisition.

“After the acquisition is complete, we will undertake a feasibility study and work on the environmental impact analysis [Amdal] document, so that, hopefully, we can start production in early 2019,” Teddy said.

Source : The Jakarta Post

Reporter: Wahyu Tri Rahmawati
Editor: Wahyu Rahmawati
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