In good hands: This ASX hopeful already has 1Moz of gold and that’s just one arrow in its quiver
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A million hot ounces of Indonesian gold is the prize Far East Gold is offering investors as it preps an ASX-listing early in the New Year.
And if the bona fide JORC resource of 996,000oz of gold wasn’t good enough, the Wonogiri tenement that hosts the resource is just one of six advanced tenements the company holds across Australia and Indonesia.
These include the Woyla tenement that was previously held by Barrick Gold and Newcrest, who identified several drill targets but were never able to start due to forestry designations – an issue Far East has bested – and the Trenggalek tenement where more than 17,700m of drilling has been carried out to date.
Far East’s Australian projects – Hill 212, Blue Grass Creek and Mt Clark West – have received less attention but the work that has been carried out, which includes scout drilling, has pointed to sizeable deposits in the Drummond Basin and Connors Arc, Queensland.
Most of the tenements are located close to existing large-scale mining operations that provide access to existing transport and utilities infrastructure while both Trenggalek and Wonogiri are IUP (mining business) licences that allow the company to use public roads and railways for mining activity.
Gold prices have been remarkably healthy this year and have strengthened in recent weeks due to concerns about the new Omicron variant and its impact on recovering economies.
As such, the timing appears perfect for the company to raise between $8m and $12m through an initial public offering priced at 20c.
Proceeds will be used to finalise the acquisition of the six tenements and secure the necessary permits to undertake advanced exploration at Woyla and Trenggalek.
Far East will also seek to acquire an IUP OP licence for Wonogiri that will enable it to carry out production operations.
Far East’s operations are led by chief executive officer Shane Menere, who has 25 years’ experience in resources and infrastructure including more than a decade throughout Asia Pacific.
Support is also provided by Nickel Mines (ASX:NIC) managing director Justin Werner, who has led the company since 2012, helped it IPO at 35c in August 2018 and directed its growth into a $3.5bn pure play nickel company.
Werner will lend his extensive knowledge of capital markets and deep experience dealing in Indonesia to the company as one of its non-executive directors.
Chairman Paul Walker has headed up large infrastructure and resource projects over more than three decades and is familiar with Indonesian business dealings, having founded and chaired another mining operation in the region in 2009