JAKARTA (TheInsiderStories)—Indonesia’s mining company PT Merdeka Copper Gold Tbk (IDX: MDKA) seeks Rp1.33 trillion (US$94.381 million) from a rights issue in August.
In the prospectus issued by the company, Merdeka Copper will issue 594,931,190 shares or equivalent to 14.29% of the fully paid capital. The offered stock price is offered at Rp2,250 per share. MDKA will get a maximum of Rp1.33 trillion.
The right issue period is scheduled for 2-8 August 2018. The company’s existing shareholders PT Mitra Daya Mustika (MDM), PT Trimitra Karya Jaya (TKJ), PT Saratoga Investama Sedaya Tbk (SRTG), and PT Srivijaya Kapital (SK) said they would exercise their rights to maintain their ownership. PT Suwarna Arta Mandiri (SAM) will become a standby buyer up to a maximum of Rp550 billion.
The company plans to use the fund gained from the right issue to pay the debts including US$20.24 million to PT Saratoga Investama Sedaya Tbk. Approximately US$19.11 million will be used to repay all the Company’s liabilities to Provident Minerals Pte. Lt.
In addition, the company will also use US$25.65 million to repay liabilities to Pierfront Capital Mezzanine Fund Pte. Ltd. and US$13.14 million to PT Mitra Daya Mustika.
The remaining funds after payment of obligations will be used by the company and subsidiaries for working capital related to general and administrative expenses.
Merdeka Copper through the subsidiary PT Bumi Suksesindo booked US$43.1 million in net income and US$132.71 million in revenue last year. The company mined 142,468 oz gold and 44,598 oz silver in 2017.
In 2016, the company recorded US$2.8 million loss as the mine in Banyuwangi was not yet in operation.
The company recorded 28,661 oz gold production and 19,727 oz silver production in the first quarter of this year with the average selling price of US$1,334 per oz for gold and US$17 per oz for silver. As a result, the firm booked US$74.5 million in revenue and US$25.1 million in net income in the first quarter of 2018.
Merdeka Copper has mining business license of 4,998 hectares and 6,623 hectares. According to a study conducted by the company, the existing mines could be exploited up to 25 years with the estimates potential ore reserves of 1.9 billion tonnes.