ASX/MEDIA RELEASE
ANTAM MAKES JOINT BID TO ACQUIRE HERALD RESOURCES
Ministry of State-Owned Enterprises Fully Supports Bid
Jakarta, January
31st, 2008 – PT Antam Tbk (ASX - ATM; IDX - ANTM) is pleased to announce it
has made a joint cash offer with Shenzhen Zhongjin Lingnan Nonfemet Co.
Ltd to acquire Herald Resources Ltd, an Australian base metals and gold
mining company, for A$2.50 per share, or A$505 million (US$448 million).
The details of the joint cash offer, which has the support of Herald’s
management, are detailed in a joint press release made on January 29, 2008 by Antam, Herald and Zhongjin.
After being briefed on the transaction by Mr. Dedi Aditya Sumanagara,
Antam’s President Director, the Minister of State-Owned Enterprises,
Mr. Sofyan Djalil, said "the acquisition of Herald
Resources represents a very attractive opportunity for Antam and the
Ministry of State-Owned Enterprises, which owns 65% of Antam, is fully
supportive of this bid."
One of
Herald’s main assets is its 80% interest in PT Dairi Prima Mineral, which
has a 7th Generation Contract of Work with the Government of the Republic of Indonesia for a high grade lead and zinc
project in North Sumatra, Indonesia. The remaining 20% of PT Dairi Prima
Mineral is held by Antam.
Zhongjin profitably
operates a low cost zinc and lead mining and smelting facility in the
People’s Republic of China.
“Initially
Antam played a limited role, related to its minority interest in PT Dairi
Prima, but closely followed the progress of the Dairi project, which mostly
consists of the large, high quality, Anjing Hitam deposit. Antam believes
there is now an opportunity to create value for its shareholders by taking a larger
interest in the project and introducing Zhongjin as an experienced operating partner
to potentially add significant value to the current value of the Dairi
project. Zhongjin, at its mine in Southern China,
operates at greater depths and lower grades than is planned for the Dairi
project and is one of the lowest cost zinc and lead producers in the world.
Antam
remains optimistic about the long term outlook for commodity prices. As
well, significant progress has been
made as regards securing the necessary regulatory approvals for the project and
everything that can be done has been done. Antam is optimistic it will
soon achieve the necessary approvals.
Mr. Sumanagara goes
on to say: “The strategic rationale of this move is to generate good
returns on investment for our shareholders. The move does not indicate a
departure from our stated acquisition strategy, and we are still very much focused
on acquiring gold assets in Indonesia.
The investment surpasses our minimum return thresholds, increases the diversity
of our assets and will create good value for our shareholders.
Additionally, Antam has recently acquired a new exploration area near the Dairi
project. The area shares the same geological characteristics and we may
be able to add this area to the joint venture in the future.”
Antam
intends to fund the offer through a combination of cash and new and existing
debt facilities. Antam’s credit rating was recently upgraded to Ba3
due to its strengthening financial profile. Antam’s current
financial structure allows the firm to comfortably make this investment and not
jeopardize current gold acquisition planning.
For further information please
contact:
Mr
Bimo Satriyo
Corporate
Secretary
Tel: (6221) 780 5119
Fax: (6221) 781 2822
Email: corsec@antam.com
www.antam.com
Media enquiries:
Warrick Hazeldine
Purple
Communications
Ph: 08 9485 1254
Mob: 0417 944 616
Email: whazeldine@purplecom.com.au
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