Indonesia’s PT Wasesa Indo Nusa (PT WIN) has signed a deal with Asiamet Resources to acquire BKM Copper project, for $163.4m.
Under the terms of the non-binding Heads of Agreement (HoA), PT WIN will acquire Asiamet’s wholly-owned subsidiary Indokal. It will be a phased transaction.
Indokal owns the Kalimantan Surya Kencana Contract of Work (KSK CoW), including the BKM Copper Project, located in Central Kalimantan, Indonesia.
Initially, PT WIN will pay $10m in cash to Asiamet upon signing of a binding sale and agreement.
The transaction also includes payment of $40m in cash upon the successful IPO of PT WIN on the Indonesian Stock Exchange (ISX).
Before undertaking an IPO on the IDX, PT WIN has agreed to acquire Aeturnum Energy International PTE, a commodities trading business which owns 19.9% stake in Asiamet Resources.
Subsequently, Asiamet will receive, in two tranches, 22.5% shares of IDX listed PT WIN.
Asiamet stated: “Reputable third-party Indonesian company valuation experts with experience in oil, gas and mining were used by Aeturnum to provide an independent valuation of the assets to be acquired by PT WIN. These valuations have been used to inform the HoA.”
Asiamet to manage KSK CoW project for twelve months
As per the management services contract, Asiamet has agreed to continue to manage the KSK CoW project for twelve months, following the IPO of PT WIN.
The transaction is subject to approval from the Indonesian government, as well as all other regulatory bodies.
PT WIN expects that its existing cash reserves and expected proceeds from the planned IPO will provide adequate financial resources to enable the development pathway for the BKM Copper project.
