Jakarta - PT Merdeka Copper Gold Tbk (MDKA) has provided financing facilities to PT Merdeka Tsingshan Indonesia (MTI) worth up to US$110 million.

Based on the company's information disclosure on Tuesday (8/2), the company divided the financing funds into two, US$60 million and US$50 million.

The company will use the US$60 million financing fund for working capital and general corporate purposes, including over-expenditures and operating expenses. Meanwhile, the US$ 50 million financing fund will be used for capital expenditures, construction, and operational costs.

The financing fund is based on the agreement dated February 4, 2022. The deal is subject to interest at LIBOR plus 5% per annum. The term of the financing fund is five years.

With the implementation of this transaction, the company expects MTI to carry out its business activities more optimally. In turn, it impacts the company as an indirect shareholder positively.