Nusantara sells down stake in Awak Mas

NUSANTARA Resources is aiming to sell a 40% stake in the potential 100,000 ounce per annum Awak Mas gold project in Indonesia for US$40 million to major shareholder Indika Energy.
Nusantara sells down stake in Awak Mas Nusantara sells down stake in Awak Mas Nusantara sells down stake in Awak Mas Nusantara sells down stake in Awak Mas Nusantara sells down stake in Awak Mas

Awak Mas, Indonesia

Staff Reporter

Indika, which currently holds about 20% of Nusantara, is to pay $15 million for 25% ownership, with another $25 million to increase its stake to 40% due upon a final investment decision.

Indika's subsidiary PT Petrosea is also to provide deferred payment terms of $40 million via a front end engineering and design contract and EPC contract.     

All going to plan Nusantara and Indika will seek debt funding of $110-120 million for Awak Mas' development, with the balance of about $60 million to involve equity - of which $40 million is spoken for with the deal unveiled today.

Awak Mas is slated to produce about 100,000oz at all-in sustaining costs of $760 per ounce.

Nusantara started the current quarter with about A$5 million cash.

Shares in Nusantara were up 1% to 41c in midday trade, capitalising the company at $69 million.

The stock has doubled in value over the past year.

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