Aburizal Bakrie Conglomerate Owned Company Use Rights Issue Fund Of IDR 1.6 Trillion To Pacu Gold Mine

Illustration. (Photo: Unsplash)

JAKARTA - PT Bumi Resources Minerals Tbk stated that it will use the additional capital fund with pre-emptive rights (HMETD) or rights issue worth IDR1.6 trillion to spur the gold mining business.

Bumi Resources Minerals President Director Suseno Kramadibrata, in an official statement quoted on Tuesday, April 20, said that the successful implementation of this rights issue indicates the trust of shareholders in the company.

Meanwhile, from the proceeds from the rights issue, BRMS allocated 23 million US dollars to drill several gold prospects in Poboya, Palu, Sulawesi. From the project, the company hopes to get an additional 15 million-20 million tons of gold ore reserves and resources from the area.

The drilling results will be delivered in the fourth quarter of 2021 and the second quarter of 2022. BRMS will also use around 48 million US dollars from the proceeds from the rights issue to build a gold ore processing plant with a capacity of 4,000 tons of ore per day in Poboya.

Construction of the plant will begin in mid-2022 and is expected to be completed and operational in the first quarter of 2024. BRMS is also completing construction of another processing facility to increase the current processing capacity from 500 to 4,500 tons of ore per day in Poboya, Palu which is expected to start operating in the second quarter of 2022.

"The new gold ore processing plant is expected to increase the amount of gold production, revenue and net profit from BRMS. The discovery of gold ore reserves and resources is also expected to increase the productive life of the company's mines," said Suseno.

In addition, BRMS also allocated around US $ 5.25 million from the rights issue proceeds to drill several gold prospects and to develop a gold mine site in Motomboto, Gorontalo Sulawesi.

BRMS reports that all shareholders registered in the list of shareholders of the company as of March 30, 2021 have exercised their rights to purchase new shares issued in the rights issue. BRMS issued 22.9 billion shares with an exercise price of IDR70 per share.

Thus, the company raised fresh funds reaching Rp1.6 trillion. Meanwhile, the rights issue implementation period ends on April 9, 2021.