PT Bumi Resources Minerals Tbk (BRMS) has received an effective statement from the Financial Services Authority (OJK) on the plan to increase capital with pre-emptive rights of up to Rp1.6 trillion.

Bumi Resources Minerals President Director and CEO Suseno Kramadibrata said the two standby buyers were willing to buy the new shares issued in this transaction if the relevant shareholders did not exercise their rights.

"The first standby buyer is willing to buy a maximum of 6.22 billion new issued shares (27%) and the second standby buyer is willing to buy a maximum of 16.68 billion new shares (73%)," he said in an official statement, Friday (19/3). ).

BRMS issues a maximum of 22.9 billion new shares with an exercise price of Rp70 per share. BRMS will carry out this corporate action on April 1-9 and scheduled warrants' implementation on October 6-29, 2021.

The company plans to use the proceeds from the rights issue to build a gold ore processing plant with a capacity of 4,000 tons per day worth US$48 million in Palu and US$23 million for drilling work in 4 gold prospects to increase the number of reserves and ore resources in Palu.

If there are remaining rights issues proceeds, the company will use it to finance working capital.