BlackGold Natural Resources intends to raise up to S$8.2 million in a share placement agreement. The company intends to use part of the net proceeds for developmental expenses relating to the Riau 1 power plant project in Indonesia.

The Catalist of the Singapore Exchange Securities Trading Limited listed company also intends to use funds to further strengthen its working capital position.

The Riau 1 project is a joint cooperation project between BlackGold and China Huadian Engineering Co Ltd for the development of a 2 x 300 MW coal–fired power plant in Riau province. The consortium has participated in a bidding process to provide electrical power to the Indonesia state-owned company, PT Perusahaan Listrik Negara (PT PLN).

Further to a Ministerial Regulation by Indonesia’s Ministry of Energy and Mineral Resources in February 2017, the manner of award of the bid can now be made by way of direct appointment. Subject to the successful awarding of the bid to the consortium and entry into the relevant power purchase agreement with PT PLN, the consortium shall construct and commission the project to enable it to produce and supply electrical power to PT PLN.

Blackgold group's executive director and CEO Philip Rickard said: “We are very heartened by the support and strong interests received from the numerous investors who have participated in this placement exercise, which exudes confidence in the group. The proceeds from this placement augments our readiness for the project as we await the outcome of the bid from PT PLN.”

SAC Capital Private Limited has been appointed as the placement agent to procure subscribers for the placement on a best endeavours basis. The placement is subject to the fulfilment of certain conditions, including approval from the SGX-ST.

The sponsor of the company, SAC Advisors Private Limited, will be making an application on behalf of the company to the SGX-ST for the dealing in, listing and quotation of the placement shares on Catalist of the SGX-ST.

BlackGold Natural Resources is an Indonesia-focused coal mining company targeting the country's rapidly growing power plant industry. Through long-term, fixed offtake agreements with its principal customers, the company has a customer portfolio consisting of state-owned and independent power plants and factories.

BlackGold subsidiaries have rights to three coal concessions in Riau. Through subsidiary PT Samantaka Batubara, the company has a coal concession for an area of 15,000 hectares, and has more than 200 million tonnes of coal resources.

www.blackgold-group.com

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