Indonesian miner PT Merdeka Copper Gold Tbk said on Monday its gold mining unit has gained approval from the regulator to launch book building for an initial public offering to raise as much as 4.9 trillion rupiah ($300.6 million).
PT Merdeka Gold Resources plans to offer as much as 1.6 billion shares in the IPO scheduled for September 17-19, it said in a statement.
The company will use the proceeds as capital for its gold mining and processing business and for debt payment, the statement said.
Its flagship mine in Pani Mountain in Sulawesi is estimated to have 7 million ounces of gold resources.
Merdeka Gold Resources is currently constructing a processing facility for the project, scheduled to start operating in the first quarter next year.
At its full operation, the Pani gold project is expected to reach peak production of 500,000 ounces of gold.
Indo Premier Sekuritas, Trimegah Sekuritas Indonesia and Sinarmas Sekuritas have been hired as underwriters for the IPO. The shares are expected to be listed on Indonesia Stock Exchange on September 23.
($1 = 16,300.0000 rupiah) (Reporting by Fransiska Nangoy; Editing by Martin Petty and Louise Heavens)
