https://www.engineeringnews.co.za

Sumatra secures $63m in funding for Tembang

25th February 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

Font size: - +

PERTH (miningweekly.com) - ASX-listed Sumatra Copper & Gold has secured a A$63-million debt and equity funding from cornerstone investor Provident Capital Partners to develop the Tembang gold/silver project, in Indonesia.

The funding package would comprise three components, including a fully underwritten placement of 38-million chess depository interests (CDIs) to raise an initial A$8.36-million, with Provident taking the full placement.

Sumatra would also undertake a one-for-three pro rata nonrenounceable entitlement offer to raise a further A$20-million, with a further A$35-million in project funding secured from Credit Suisse.

Under the terms of the debt facility with Credit Suisse, Sumatra is required to raise a minimum of A$20-million in equity and complete the final forestry permitting process.

Sumatra MD Julian Ford said on Monday that the funding package had been structured to complement the timing of the final permitting process for the Tembang project, with the entitlement offer expected to be completed by the end of May.

“This is a pivotal moment for Sumatra and for the development of the Tembang project. We are absolutely delighted that our major shareholder Provident Capital has agreed to underpin this equity raising, both through an initial placement and by fully underwriting the subsequent entitlement offer.”

Ford noted that Provident’s support for the project is demonstrated by its willingness to subscribe for shares at a premium, while most junior miners were forced to accept substantial discounts when placing stock.

“Since coming onto our share register last year, Provident has provided invaluable assistance to us in operating in Indonesia and they continue to provide highly valuable strategic, financial and technical support. Their reputation and track record as a highly successful private equity group in Indonesia is impeccable,” said Ford.

The equity funding package would allow Sumatra to finance and develop Stage 1 of the Tembang project, which requires a preproduction capital investment of $40-million. Stage 1 would deliver some 30 000 oz/y of gold and 200 000 oz/y of silver.

Stage 1 production would start in 2014.

Stage 2 production, which would start in 2015, would see production expand to 50 000 oz/y of gold and 500 000 oz/y of silver.

Edited by Creamer Media Reporter

Comments

Showroom

Werner South Africa Pumps & Equipment (PTY) LTD
Werner South Africa Pumps & Equipment (PTY) LTD

For over 30 years, Werner South Africa Pumps & Equipment (PTY) LTD has been designing, manufacturing, supplying and maintaining specialist...

VISIT SHOWROOM 
Rio-Carb
Rio-Carb

Our Easy Access Chute concept was developed to reduce the risks related to liner maintenance. Currently, replacing wear liners require that...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.076 0.13s - 156pq - 2rq
Subscribe Now