Australia investment company,Macquarie Capital Ltd., bought 1.01 billion shares ofPT Merdeka Copper & Gold Tbk(IDX: MDKA) for Rp2.43 trillion (US$169.93 million), the management announced last week. The new investor bought the shares from PT Saratoga Investama Sedaya Tbk (IDX: SRTG) through a private placement scheme.
The funds obtained by the company will be used by the company or our subsidiaries for capital expenditures and working capital needs, said the management on Friday (03/05).
Together with the private placement,Merdeka Copperalso issued two series of local bond amounted to Rp1.5 trillion. The Series A have tenure 367 days and Series B for three years. The miner has not yet determined the interest rate of the bonds.The public offering period set on March 23 24 and targeting listing on the Indonesia Stock Exchange on 29 March.
Around 23 percent of the proceeds of the bond will be used to repay the principal debt under the Single Currency Revolving Facility of $25 million. Then, around 11 percent will be used by PT Bumi Suksesindo to fund the exploration activities of the Tujuh Bukit Copper Project,which is expected to be completed in 2021.
Recently, the subsidiary, PT Batura Pelita Investama and Wealthy Source Holding Ltd., a unit of China Eternal Tsingshan Group Ltd., has signed a deal to build the project.The joint venture would handle the Acid Iron Metal project in the Indonesian Morowali Industrial Park area to process pyrite ore fromWetar copperproject.
The mining firm owned 80 percent at the new entiry and Tsingshan through its affiliate will hold 20 percent. Itstargeting the production of copper around 14,000 to 17,000 tones from a year ago was 5,472 tones followed the development of the Partolang pit. The company plans tointegrated the Wetar copper mine and the Acid Iron Metal project at Lerokis mine to the new Partolang mine.
Copper productionis expected to increase in the first quarter of 2021 along with the development of Partolang and it is expected to start achieving consistent production levels in the 2021 quarter, explained the management.
Merdeka Copper also targeting the gold production up to 120,000 troy ounces or lower than 2020′ production of 157,175 troy ounces. With the capacity, in 2020, the mining producer sold 162,847 troy ounces of gold, dropped by 26.9 percent compared to the same period of 2019.