Nusantara Resources Shores up Funding for Awak Mas gold project

THE BOURSE WHISPERER: Nusantara Resources (ASX: NUS) has entered into a non-binding term sheet with strategic partner, PT Indika Energy Tbk providing financing for the company’s Awak Mas gold project.

Indika Energy is to invest up to USD $40 million into Nusantara’s wholly-owned subsidiary PT Masmindo DWI Area (Project Company), in two stages and subject to conditions, to secure up to 40 per cent interest in the Project Company.

“The Board of Nusantara in conjunction with our partner Indika Energy are excited to announce this transformational milestone and clearly demonstrate to all stakeholders the value of the project and a clear pathway for funding.” Nusantara Resources executive chairman Greg Foulis said in the company’s announcement to the Australian Securities Exchange.

“We are confident that, with the support of major shareholders, Nusantara can complete the Indika Energy and Petrosea Agreements in early 2020 and significantly ramp up its pre-build activities.”

A Definitive Feasibility Study carried out in 2018 showed the Awak Mas gold project to be a robust, long-life and low-cost gold project with an initial 11-year life producing around 100,000 ounces of gold per year that is development ready.

Since completing the 2018 DFS, Nusantara has been focused on a partnering approach to funding and development of the project.