Indonesian local private equity company, PT Saratoga Investama Sedaya Tbk (SRTG) plans to raise up to $100 million from an initial public offering (IPO) of it wholly owned subsidiary PT Merdeka Serasi Jaya, a copper and gold miner.
The IPO is scheduled in the second half of this year.
CEO Of Saratoga Investama, Sandiaga Uno said, the company is going to release around 20 per cent of Merdeka’s shares. The fund raised via the IPO is purposed to be used for developing mines and building, a smelter to process copper amd gold concentrates.etc.
Currently, the total assets of Merdeka are estimated at $4 billion, which include the undeveloped Tujuh Bukit Gold and Copper Project in Kendal, East Java.
The company will start to develop the gold mine this year with the production to start in 2016. Later, the copper project will follow, starting in 2019, with the construction of the smelter. The capacity production is estimated 29 million ounces of gold, 19 billion pounds of copper and 13 million ounces of silver.
Saratoga is exploring to acquire a majority stake in local oil and gas producer Benakat Barat Petroleum. Saratoga already owns 20 per cent of Benakat worth $7.34 million, through Interra Resources, a Singapore-based unit.