PERTH (miningweekly.com) – The shareholders of ASX-listed Nusantara will gather in April to vote on a $40-million project equity deal with strategic partner Indika Group to develop the Awak Mas gold project, in Indonesia.
Nusantara in December last year signed a non-binding term sheet with Indika that would see the project partner gain an eventual 40% interest in the gold project.
The first stage investment would see Indika contribute $15-million in funding for an initial 25% interest in Awak Mas, while a second stage funding of $25-million would secure a further 15% interest.
A previously completed definitive feasibility study into the gold project estimated that it could produce 100 000 oz/y over an 11-year period, with a capital cost of $146-million forecast.
Nusantara on Wednesday said that early capital pre-development activities at Awak Mas had now started, while the front-end engineering and design (FEED) contract negotiations were advancing.
The award of the FEED contract was a condition of the Stage 1 investment, and Nusantara anticipated that the contract would be awarded in the first quarter of this year.