JAKARTA (TheInsiderStories) – An Australian miner, Asiamet Resources Ltd., announced has entered into a non-binding heads of agreement with Indonesia’ PT Wasesa Indo Nusa, to acquire its wholly-owned subsidiary, Indokal Limited. The transaction is estimating have a total costs of US$163.4 million.
Indokal holds the Kalimantan Surya Kencana Contract of Work (CoW), including the BKM Copper Project, located in Central Kalimantan, Indonesia. The buyer will also acquire Aeturnum Energy International PTE Limited’ commodities trading business.
The acquisition price will comprise $10 million paid in cash on the execution of a binding Sale and Purchase Agreement, this payment is non-refundable. Then, $40 million paid in cash upon the successful of Wasesa Indo Nusa to list 22.5 percent shares on the Indonesia Stock Exchange.
For background, the company plans to undertake an Initial Public Offering (IPO) in March 2021. Discussions are currently underway with several highly rated Indonesian financial institutions to underwrite the IPO. The private company is expects to have sufficient financial resources to enable the develop BKM Copper Project after the IPO.
Asiamet said, proposed transaction is subject to receipt of a number of regulatory approvals, the equity consideration valuations, and subject to final underwriter valuations. The miner will continue to manage the CoW project for a period of up to 12 months (extendable by mutual agreement), following the IPO of Wasesa Indo Nusa through a management services contract.
If the IPO of the buyer does not proceed, Asiamet will be entitled to the non-refundable initial payment of $10 million and provide with a 30 day exclusivity period to purchase Indokal for cash at an agreed price, less any funds already paid to the seller.
Satisfactory IPO by Wasesa Indo Nusa, which includes a minimum equity value of $400 million and minimum free float of 20 percent. Following completion of the transaction Asiamet will have circa $50 million cash and no debt on its balance sheet, and retain a size-able 22.5 percent interest in the CoW through its Wasesa Indo Nusa along with an 80 percent interest in the significantly larger Beutong copper gold porphyry project located in Aceh, Indonesia.
Indokal is the 100 percent owner of the Kalimantan Surya Kencana CoW, covering 39,443 hectares. The Company delivered a robust a feasibility study for the BKM copper project in June 2019, some key metrics include an initial nine year life of mine producing up to 25,000 tones of copper cathode per annum from a ore reserves of 51.5 metric tones, for 303,000 contained tones of copper in the proved and probable category.
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