Intrepid Mines Limited: Share Placement to Surya Paloh BRISBANE, AUSTRALIA, Jul 31, 2012 (MARKETWIRE via COMTEX) -- Intrepid Mines Limited ("Intrepid", the "Company") /quotes/zigman/36666 CA:IAU -6.00% (asx:IAU) announces an agreement for the placement of 27,680,017 ordinary shares, representing approximately 5% of the Company's expanded issued capital, to prominent Indonesian businessman, Surya Paloh.
Surya Paloh is a prominent political and business figure in Indonesia. He is the founder and owner of the first Indonesian news television network, Metro TV, and the Media Group, which publishes the Media Indonesia and Lampung Post newspapers. The Media Group is highly regarded for informing and focussing Indonesian public opinion on issues of the day.
Mr Paloh has extensive interests in the hotel and property sectors and in oil and gas operations. He also owns Indonesia's largest catering company, which services major oil rigs and mining operations across the country.
Mr Paloh and the Media Group are at the forefront of socially responsible and community-oriented business practices, having led major disaster response and fundraising initiatives following the 2004 Aceh tsunami and subsequent natural disasters in Indonesia.
Mr Paloh and his associates will be working closely with the Company and assisting engagement with key Indonesian stakeholders, particularly in both central and local government. As a substantial shareholder in Intrepid, whose interests are now fully aligned with existing Intrepid shareholders, Mr Paloh is well-placed to assist in promoting the Company's profile and business interests within Indonesia.
Intrepid CEO, Brad Gordon, said: "We are delighted to be associated with Mr Paloh, whose extensive networks and vast experience in navigating the waters of Indonesian business will greatly benefit the Company both in safeguarding its existing interests in Indonesia and in expanding within the local resources sector. This association extends the Company's assimilation into Indonesia and follows the appointment of Adrianto Machribie to the board of Intrepid in November 2011 and the recent opening of a Representative Office in Jakarta.
We look forward to a close relationship with Mr Paloh, whose interests are now well-aligned with those of our existing shareholders through a share acquisition scheme which recognises the potential contribution of Mr Paloh to assist in rebuilding shareholder value in the Company."
The Transaction
Intrepid and Surya Paloh ("Subscriber") have entered into a Subscription Agreement, under the terms of which the Company undertakes to issue 27,680,017 ordinary shares to the Subscriber for a nominal price, subject to provisional TSX approval being obtained.
Additionally, the Company will issue to the Subscriber, for no consideration, 25,604,016 Performance Rights to ordinary shares, which vest upon the daily volume-weighted average price of the Company's shares equalling or exceeding A$1.00 for one full calendar month on the ASX and C$1.00 for one full calendar month on the TSX, and which lapse after one year should vesting not have occurred. This target would represent value uplift of over four times based on current market prices.
The Company has further agreed to issue an additional 25,604,016 Performance Rights to ordinary shares, subject to requisite TSX approvals being obtained. The Performance Rights vest upon the daily volume-weighted average price of the Company's shares equalling or exceeding A$1.20 for one full calendar month on the ASX and C$1.20 for one full calendar month on the TSX, and lapse after one year should vesting not have occurred. This target would represent value uplift of over five times based on current market prices.
It is excellent news....
IAU Price at posting:
22.0¢ Sentiment: Hold Disclosure: Held
(20min delay)