Sumatra Copper signed agreement with Provident Capital Partners
Thursday, September 13 2012 - 03:42 AM WIB
ASX-listed firm Sumatra Copper & Gold Plc (SUM) recently stated it has signed an agreement with Provident Capital Partners Pte. Ltd. to have the later subscribe for 28 million fully paid ordinary SUM shares or CHESS Depository Interests at a price of A$0.135 per Share.
Subject to SUM shareholder approval, Provident will be granted for an additional 40 million conditional options, each exercisable to acquire one Share, in which the exercise of options will be conditional upon 1. Provident, or their nominees, having acquired an additional 10 million Shares; or 2. SUM having obtained a Pinjam Pakai Eksploitasi (exploitation forestry permit) for the Tembang project.
"Each Option is exercisable at a price equal to a 15% discount to the 10 day VWAP at the time of giving notice of exercise of the Option with a maximum exercise price of A$0.20. The options are exercisable at any time after satisfaction of one of the above conditions until the earlier of 31 December 2012 or 30 days after SUM gives Provident notice that a minimum of A$1 million of SUM Shares have traded at A$0.20 or more," the company said in a statement submitted to the ASX.
SUM expects to complete the initial subscription within two weeks time, following which the company will seek shareholder approval for the issue of the options.
Provident was founded in 2004 and has a number of successful investments in a variety of industries. Amongst other investments, Provident has a 19% interest in Sihayo Gold Limited, an Australian listed Indonesian based gold mining company.
Editing by Er Audy Zandri