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Sumatra raises A$20m for Tembang development

9th May 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Metals developer Sumatra Copper & Gold is looking to raise some A$20-million through a rights issue to underpin the development of its Tembang gold/silver project, in Indonesia.

Under the fully underwritten rights issue, Sumatra would issue some 117.8-million chess depository interest (CDI) shares at 17c each. The rights issue would proceed on the basis of two new CDIs for every five held on the record date.

Sumatra said this week that its major shareholder and cornerstone investor, Provident Capital Partners, has agreed to fully sub-underwrite the offer.

Funds raised under the offer would be used for working capital to progress the Tembang project, and to assess and progress potential new opportunities, Sumatra said.

The Tembang project was expected to start gold production by next year, with Stage 1 delivering some 30 000 oz/y of gold and 200 000 oz/y of silver. 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

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