JAKARTA (TheInsiderStories) - Golden Energy and Resources Ltd., (GEAR), the holding company of PT Golden Energy Mines Tbk (IDX: GEMS), has grabbed US$285 million from the global bond market, its announced last week. The notes have a coupon rate of 8.5 percent per annum and five years of tenure.
The spokeswoman of GEAR Group, Pauline Lee, explained that these senior notes would be guaranteed by Golden Investment, which is based in Australia. GEAR is an energy and resources holding company with investments in coal and gold and 62.48 percent owned by Golden Energy.
The Singapore-based company plans to use the proceeds to redeem all of its outstanding $150 million notes due 2023 and repay outstanding bank loans at the holding company. Recently, the Golden Energy has canceled the rights issue which was originally intended to meet the provisions for free float of shares.
The director, Suhendra, said on April 24, GEAR has sold 4.5 percent of ownership to Ascend Capital Advisors Pte. Ltd., and has fulfilled the requirement. GEMS had registered the rights issues on Dec. 3, 2020, Dec. 28, 2020, and Feb. 22, 2021.
This year, Golden Energy has allocated a capital expenditure up to $9 million for business expansion, while GEAR is preparing to be more aggressive in investing in overseas gold mining businesses. The company intends to increase investment worth A$75 million in gold mine owners in Queensland, Australia, namely Ravenwood Gold Group Pty. Ltd.
This mine has been operating and produced 54,000 ounces of gold as of the end of 2019. This mine is recorded to have 3.74 million ounces of gold resources and 2.60 million ounces of total gold reserves as of Sept. 30, 2020. The miner also intends to expand its core business by including precious metals, base metals and minerals businesses.
President director of Golden Energy, Bonifasius, added the unit of Sinar Mas Group is proposing a revision of the 2021 target driven by rising demand and coal prices. Now, the miner’ domestic sales target of $175 million and around $159 million has been achieved in just the first three months of this year.
Listed on the Singapore Stock Exchange, GEAR is an energy and resources company with investments in coal and gold. Its primary asset is Golden Energy located in Kalimantan and Sumatra.
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