Far East finds some love from Kazakh government for Indonesia play
Far East Gold was fronting investors with a share placement on Monday as it moved to fund exploration at its Indonesian projects.
Far East Gold team members at the Wonogiri site in Java.
The gold and copper miner had brokers at Canaccord Genuity and Ord Minnett offering shares at 25¢ a pop, a 16.7 per cent discount to the last traded price of 30¢ and a 12.8 per cent discount to the 10-day volume weighted average price. Reach Financial was acting as co-manager.
Far East was seeking to raise $6 million by issuing 24 million new shares, with the option to take oversubscriptions up to $8 million.
Luxembourg-headquartered natural resources group Eurasian Resources have conditionally agreed to take up $4 million in the placement on the basis that “FEG agrees to spend $4 million on the Trenggalek project and that ERG receives a right of first refusal over Trenggalek,” according to a term sheet sent to potential investors pitched.
Eurasian Resources, whose main shareholder is the Kazakh government, owns mining and processing operations across Asia, Africa and Brazil. It reported underlying EBITDA of $US4.21 billion ($6.5 billion) in 2021.
The raise’s proceeds will be used at Far East’s Woyla, Trenggalek and Wonogiri gold projects across Indonesia as well as general working capital.
The joint lead managers were calling for bids due by 5pm on Monday.
Far East Gold listed in March 2021 with a $43 million market capitalisation, after raising $11.73 million in its IPO. Its market capitalisation at last traded price was north of $67 million.
The company last raised funds in November 2022 via CLSA and Reach Markets, seeking up to $12 million at 50¢ a share.
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