JAKARTA. The oil and gas company, PT Indika Energy Tbk (INDY), increased its expansion in the Awak Mas gold mining project in Luwu Regency, South Sulawesi, which was developed by PT Masmindo Dwi Area, with equity participation of 25%.
Masmindo Dwi Area is a subsidiary of Nusantara Resources Ltd (NUS), a company listed on the Australian Stock Exchange, which owns 100% of the shares in the Awak Mas' gold project.
"Based on the disclosure of information [on the Australian Stock Exchange], and after fulfilling a number of conditions in the term sheet, the company has a 25% equity participation in Masmindo," said Corporate Secretary of Indika Energy, Adi Pramono in the disclosure on the Indonesia Stock Exchange (IDX) on Monday (9/12).
The value of equity participation is US$ 15 million or equivalent to Rp 210 billion. After this, Indika has the right - but not obliged - to take an additional 15% stake in Masmindo with a total value of US$ 25 million or Rp 350 billion.
According to Adi, Nusantara has signed a non-binding term sheet with Indika, PT Petrosea Tbk (PTRO, Indika's subsidiary), and Masmindo Dwi Area for the Awak Mas project. (AM/AR)