Business
Heads of Agreement Signed for KSK
Heads of Agreement Signed for KSK.
About this update from Asiamet Resources Limited
[{"type":"text","content":"\n \n \n \n RNS Number : 4893B\n Asiamet Resources Limited\n 08 October 2020\n \n \n \n \n \n \n \n 8 October 2020\n \n \n \n Heads of Agreement Signed for KSK\n \n \n \n \n \n Asiamet Resources Limited (\"Asiamet\" or the \"Company\") is pleased to announce it has entered into a non-binding Heads of Agreement (\"HoA\") with PT Wasesa Indo Nusa (\"PT WIN\"), an Indonesian private company, to acquire Asiamet's wholly-owned subsidiary Indokal Limited (\"Indokal\") (the \"Proposed Transaction\"). Indokal holds the Kalimantan Surya Kencana Contract of Work (\"KSK CoW\"), including the BKM Copper Project, located in Central Kalimantan, Indonesia.\n \n \n As part of the Proposed Transaction, PT WIN will also acquire Aeturnum Energy International PTE Limited's (\"Aeturnum\") commodities trading business. PT WIN plans to undertake an Initial Public Offering (\"IPO\") on the Indonesian Stock Exchange (\"IDX\") in early 2021.\n \n Discussions are currently underway with several highly rated Indonesian financial institutions to underwrite the IPO. With its existing cash reserves and expected proceeds from the planned IPO, PT WIN expects to have sufficient financial resources to enable the development pathway for the BKM Copper Project.\n \n \n 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. The Proposed Transaction is subject to receipt of a number of regulatory approvals and the equity consideration valuations ascribed throughout this release are subject to final underwriter valuations. \n \n \n All references to $ are US Dollars. \n \n \n Proposed Transaction Highlights\n \n \n · \n Indokal to be acquired by PT WIN for a total staged consideration of $163.4 million. \n \n \n · \n The acquisition price will comprise: \n \n \n · \n $10 million paid in cash on the execution of a binding Sale and Purchase Agreement (\"SPA\"), this payment is non-refundable \n \n \n · \n $40 million paid in cash upon the successful IPO of PT WIN on the IDX\n \n \n · \n A 22.5% shareholding in IDX listed PT WIN is payable to Asiamet in two tranches; the first upon listing, the second upon PT WIN releasing ...