FOR IMMEDIATE DISTRIBUTION
9 December 2019
Indika Energy has Entered a Non-Binding Term Sheet to Increase
Its Stake in Awak Mas Gold Project
Jakarta - PT Indika Energy Tbk. (IDX: INDY) or through its subsidiary PT Indika Mineral Investindo ("IMI") has entered into a non-binding term sheet with Nusantara Resources Limited ("Nusantara"), PT Petrosea Tbk. ("Petrosea") and PT Masmindo Dwi Area ("Masmindo") in relation to the Awak Mas Gold Project ("Term Sheet"). This development is a continuation of our strategic investment in Nusantara which was made initially in December 2018.
Currently INDY owns 21.02% stake in Nusantara Resources Limited. With this Term Sheet, Indika Energy could invest up to USD 40 million into Nusantara's wholly-owned subsidiary PT Masmindo Dwi Area ("Project Company") in two stages subject to satisfactory conditions. Upon closing, Indika Energy will own direct and indirect up to 52.6% interest in the Project Company.
Under this Term Sheet, Indika Energy's subsidiaries, PT Petrosea Tbk ("Petrosea") is to be awarded the Front End Engineering and Design (FEED) services. Upon satisfactory completion of FEED service, Project Company shall appoint Petrosea as the Engineering Procurement & Construction ("EPC") contractor with certain terms and conditions. By involving Petrosea into the project will enhance group's synergy further
Managing Director & CEO Indika Energy, Azis Armand said "This transaction is a continuation of our strategic investment in Nusantara. This strategic investment is a part of our diversification initiatives in non-coal sector and will synergize further within our group with the involvement of our subsidiary Petrosea."
For further detail information, please visit Nusantara's ASX announcement at
About Nusantara's Awak Mas Gold Project
Nusantara's Awak Mas Gold Project is development ready. The Definitive Feasibility Study (DFS)1 completed in late 2018 confirms a robust, long-life and low cost gold project. The DFS supports an initial 11-year project producing ~100,000 oz per year. Key attributes are:
The Awak Mas Gold Project ("the Project") is located 45km by road from
Belopa on the east coast of South Sulawesi Province, Indonesia.
The Project is held under a 7th Generation Contract of Work (CoW) until June 2050 and is owned 100% by PT Masmindo Dwi Area, a wholly owned subsidiary of Nusantara.
Ore Reserve of 1.1 Moz gold within a 2.0 Moz gold Mineral Resource
ABOUT INDIKA ENERGY
PT Indika Energy Tbk. ("Indika Energy") is Indonesia's leading integrated energy company through its strategic investments in the areas of Energy Resources - coal production (PT Kideco Jaya Agung, PT Multi Tambangjaya Utama); coal trading (Indika Capital Investment Pte. Ltd.); Energy Services - EPC - oil & gas (PT Tripatra Engineers & Constructors, PT Tripatra Engineering); EPC - contract mining (PT Petrosea Tbk. (IDX: PTRO).); Energy Infrastructure - marine transportation, ports & logistics for bulk goods and natural resources (PT Mitrabahtera Segara Sejati Tbk. (IDX: MBSS), PT Sea Bridge Shipping, PT Cotrans Asia, PT Indika Logistic & Support Services, PT Kuala Pelabuhan Indonesia); fuel storage (PT Kariangau Gapura Terminal Energi); coal-fired power plant (PT Cirebon Electric Power and PT Prasarana Energi Cirebon); Other Portfolios - gold production (Nusantara Resources Limited), IT enterprise (PT Xapiens Teknologi Indonesia), digital technology services (PT Zebra Cross Teknologi)
Ricardo Silaen - Head of Investor Relations
Nicky Kurniawan - Senior Manager of Investor Relations & Corporate Finance
firstname.lastname@example.orgT +62 21 2557 9877 or
+62 21 2557 9888 ext.: 18130
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This news release may contain certain financial information, projections, plans, strategies, and objectives of PT Indika Energy Tbk., that are not statements of historical fact which would be treated as forward looking statements within the meaning of applicable law.
Neither PT Indika Energy Tbk., its affiliates nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements in this communication.
This news release is for information only and is not an offer to sell or an invitation to buy any securities and neither this news release nor anything herein forms the basis for any contract o r commitment whatsoever.
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PT Indika Energy Tbk published this content on 11 December 2019 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 December 2019 05:05:04 UTC