AIM Project, Merdeka Copper Forms a Joint Venture

PT Merdeka Copper Gold Tbk (MDKA) has reached an agreement to form a joint venture company (JVA) with a transaction value of US $ 90 million. Based on information disclosure on Wednesday (17/2), the company on February 11, 2021 has signed a joint venture agreement for the Acid Iron Metal (AIM) project with PT Batutua Pelita Investama (BPI), Wealthy Source Holding Limited and Eternal Tshingshan Group Limited. Through the agreement, the company will establish a joint venture company through its subsidiary, namely BPI which will own 80% and Tsinghsan through its affiliate, namely Wealthy which will own 20%.

“Based on the JVA, the parties will build the AIM project factory in the Indonesia Morowali Industrial Park (IMIP) in Sulawesi to process pyrite ore from the Wetar Merdeka Copper Gold copper project,” said Merdeka Copper Gold Corporate Secretary Adi Adriansyah Sjoekri. The AIM project is expected to become a long-lived, multi-commodity asset and expand the copper resource base of Wetar Merdeka Copper Gold. “In addition, the establishment of this joint venture, if it is already operational, will provide potential additional revenue and profit for the company,” he explained. The transaction value of the action amounted to US $ 90 million, including the initial capital deposit in the joint venture. The source of funding for the AIM project will come from joint venture shareholders and third parties that will be undertaken by the company.

Exploration On the other hand, the company will continue exploration activities in three different regions in Indonesia, namely Tujuh Bukit in East Java, Wetar Island in Southwest Maluku, and Pani in Gorontalo in January 2021. Based on information disclosure, activities in the Tujuh Bukit area were focused on copper and gold porphyry resources, in the Wetar Island area focused on copper resources, while in the Pani area focused on exploration of gold resources. Meanwhile, the total costs incurred to support all exploration activities carried out by Merdeka in Indonesia during January 2021 amounted to Rp 29.7 billion. The Upper High Grade Zone (UHGZ) Copper and Gold of the Tujuh Bukit copper and gold resource is being explored through a combination of surface and underground drilling.

The focus of the current drilling program is the Upper High Grade Zone area (referred to as the Initial Mining Area – IMA) which contains the largest zone of adjacent high grade drilling results for copper and gold to date, and is well positioned for off-site drilling. current drop. Total expenditure for exploration activities related to the Tujuh Bukit UHGZ in January was IDR 25.7 billion consisting of subsidence development, underground resource definition drilling and related test works.

Meanwhile, the Wetar Island exploration program focuses on mapping and sampling of regional EM target rock shales near Lerokis, planning geotechnical drilling around the hole area at Kali Kuning and drilling additional resources at Lerokis. The total estimated cost for December is IDR 0.80 billion. All work is completed through a contractual agreement between the company and PT Merdeka Mining Servis.