EGM Medco, Investors Approve Acquisition Newmont

Today PT Medco Energi International Tbk (MEDC) held a General Meeting Extraordinary Shareholders (EGM) with two different agendas, which is related to the acquisition of shares in PT Newmont Nusa Tenggara as well as a capital increase through public offering of limited rights issue (ER) to the shareholders alias rights issue.
Launch of the company’s written statement on Friday (30/09/2016), the shareholders agreed to the acquisition of 50 percent stake in PT Amman Mineral Investama which will indirectly own 82.2 percent stake in PT Newmont Nusa Tenggara.
The acquisition will provide significant added value for our shareholders, by providing access to world-class operations facility in Batu Hijau with proven reserves of 2.6 billion lbs of copper and 2.7 million ounces of gold. As well as access to the front of the findings of undeveloped reserves of 12.9 billion lbs of copper and 19.7 million ounces of gold.
This transaction will increase the amount of equity and the Company’s investment portfolio, and will increase the Company’s revenue contribution from sectors other than energy material.
Meanwhile, through the Limited Public Offering, the Company will raise funds approximately equivalent to USD150 million. The proceeds will be used to repay maturing debt and to fund capital expenditures. After the Rights Issue, the Company will have a stronger capital structure to support its activities are more developed. (DNG)

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