PAM Mineral, The Mining Company Owning Blocks Named BCL, Raisa, And Syahrini Takes The Floor On The Stock Exchange Today

Illustration. (Photo: Unsplash)

JAKARTA - A nickel mining company that has a block name from an artist's name, PT PAM Mineral Tbk will be listed on the Indonesia Stock Exchange (IDX) through an initial public offering (IPO) today, Friday 9 July with the stock code NICL.

The company released 2 billion new shares with a nominal value of Rp20 per share. This amount is equivalent to 20.7 percent of the total paid-up and issued shares of the company.

The implementation price of this IPO is Rp100/share so that the company will receive IPO funds of Rp200 billion. Funds obtained from this IPO, it is planned that around 30 percent will be used for business development.

The details are for the advanced exploration program in the form of detailed infill drilling related to the addition of the company's nickel ore reserves in the company's work block area.

Interestingly, the company's mining blocks use celebrity names, namely BCL, Raisa, Kartini, Tiara, Syahrini, with a total area of about 51 hectares (Ha).

The block is located in a mining area covered by a Mining Business Permit (IUP) in Morowali Regency starting in the second semester of 2021 and for the purchase of equipment that supports drilling.

The remaining 70 percent of the IPO funds will be used by the subsidiary, PT Indrabakti Mustika (IBM), for the advanced exploration program of detailed infill drilling (infill drilling) related to the addition of IBM nickel ore reserves in the work block area under the names Kolaka, Cendana, Longori, Silae, Komia, Kuma, Kondole.

The area is about 183 Ha, located within the mining area covered by the IUP in North Konawe which will start in the second half of 2021. The funds are also for the purchase of equipment that supports drilling.

For information, here are the names of several work block areas with a total area of about 51 Ha that use the artist's name:

1. BCL A with an area of 7.28 Ha;

2. BCL B with an area of 15.88 Ha;

3. RAISA with an area of 8.46 Ha;

4. KARTINI B with an area of 11.68 Ha;

5. TIARA with an area of 3.78 Ha; and

5. SYAHRINI with an area of 4 Ha.

Along with the IPO, the company also plans to issue a maximum of 2.6 billion series I warrants with a nominal value of Rp20 per share. The exercise price for the warrants is Rp300.

The validity period of the exercise of the warrants is 6 months from the date of issuance, namely January 10, 2022, to July 7, 2023. The expiration date is July 10, 2023.

The company appointed PT Danatama Makmur Sekuritas as the underwriter. The underwriters are PT Artha Sekuritas Indonesia, PT Henan Putihrai Sekuritas, PT Waterfront Sekuritas Indonesia, PT Panca Global Sekuritas, PT Reliance Sekuritas Indonesia Tbk (RELI), and PT Value Inti Sekuritas.

Meanwhile, the funds obtained by the company from the exercise of the Series I Warrants will be used entirely for the company's working capital, which is related to operational costs.

PAM Mineral is a company engaged in the mineral mining business. Established in 2008, the company has 2 operational areas, namely in Southeast Sulawesi, Lameruru Village, Langgikima District, North Konawe Regency, and Laroenai Village, Bungku Pesisir District, Central Sulawesi.