JAKARTA (TheInsiderStories) - Indonesian miner, PT Bumi Resources Minerals Tbk (IDX: BRMS) has pocketed fresh funds Rp1.6 trillion (US$105.59 million) from the rights issue program after all shareholders exercised their rights, said the management today. It said, all shareholders have exercised their rights to purchase new shares issued by the company.
Earlier, two global investors, Hartman International Pte. Ltd., and Summer Ace Ventures acted as the standby buyer for the rights issue program. The issuer has announced, one standby buyer is willing to buy a maximum of 6.22 billion new shares (27 percent of the total issuances) and other standby buyer is willing to buy a maximum of 16.68 billion new shares (73 percent).
President Director, Suseno Kramadibrata, said in an official statement, the unit of PT Bumi Resources Tbk (IDX: BUMI) will distributes around $23 million of the proceeds to drill several gold prospects in Poboya, Palu, Central Sulawesi. He hope, that the mining firm can get an additional 20 million tones of gold ore reserves and resources in this area.
The drilling results are planned to be delivered in the fourth quarter of 2021 and then in the second quarter of 2022. The miner will also allocate around $5.25 million for several gold prospects and to develop a gold mine site in Motomboto, Gorontalo.
Then, around $48 million to build a gold ore processing plant with a capacity of 4,000 tones of ore per day in Poboya. Kramadibrata explained, the construction of the plant will begin in mid-2022 and is expected to be completed and operational in the first quarter of 2024.
Beside, the issuer and China Nonferrous Metal Industry’ Foreign Engineering and Construction (NFC) through PT Dairi Prima Mineral are planning to build a zinc and lead processing facility worth of $400 million. NFC hold 51 percent stake in Dairi Prima led the search for a loan for expansion of zinc and lead projects.
The loan with total amount of $280 million is targeted to be achieved in the first semester of 2021. While, the rest is part of NFC and the company will spend around $32 million in the projects. The factory will be built near the Anjing Hitam mines in North Sumatra, with an estimated production capacity around 1 million tones of zinc and lead ore per annum.
The unit has a zinc mine that was developed with underground mining operations with a concession area of 24,636 hectares. Apart from the site, other zinc mining areas that are close to each other are Lae Jahe and Base Camp in the same province.
The Dairi Prima permit was approved by the government in December 2017 with a contract period for 30 years. The mining life of the two mines is 15 years with total reserves of 11.05 million tones of ore. The zinc deposits in this mine are claimed to be one of the highest quality deposits in the world.
While, its parent, Bumi Resources, has planning to increased the coal export to China, followed the rising demand from the major global importer. The exports to the world second largest economy contributes 20 percent of its total exports. In 2021, the largest coal producer in Indonesia plans to produce 90 million tones (MT) of coal from a year ago nearly to 82 MT of coal.
US$1: Rp14,600
Written by Editorial Staff, Email: theinsiderstories@gmail.com
