J Resources secures $135 million loan

PT J Resources Asia Pasifik Tbk, through its subsidiary PT J Resources Nusantara (URN), has secured US dollar denominated loans worth US$135 million from PT Bank CIMB Niaga Tbk and Indonesia Eximbank to partly repay maturing debts, Investor Daily reported on Thursday.

William Surnata, a director of J Resources, said in Jakarta on Wednesday that the loan agreements were signed on October 2, 2012. ?The loan will be partly used to repay old credit facilities,: he said a statement.

J Resources would also use other parts of the loan to finance development of a gold mine in Indonesia and Malaysia.

This year, the company expects to produce 105,000 troy ounce (oz) of gold. During the first half of this year, gold production has reached 49,358 oz. With its gold production, the company is upbeat revenues will reach $174 million this year. During the first semester, total revenues have already reached $80 million.

J Resources operates mining assets formerly owned by Avocet Mining. The company formerly took over Avocet?s mining assets in South East Asia in June 2011. The assets are located in North Sulawesi and in Pahang, Malaysia. (*)