An agreement has been struck to consolidate the two deposits at Pani into a single Joint Venture. MDKA acquired a 66.6% stake in the Pani Gold deposit in Sulawesi for US$55m in November 2018. Pani has a resource of 90Mt @ 0.82g/t Au for 2.4Moz Au and abuts the J Resources deposit 2.3Moz (73Mt @ 0.98g/t Au). The key to unlocking value at Pani has been the consolidation of the tenement packages which allows for the consideration of a single open pit operation versus a split boundary scenario prior to now. Under the terms of the deal, J Resources will own 40% of the combined entity and the remaining 60% will be held by MDKA and Lion Selection (67%/33% JV). The parties will now look to fast track development, with combined Resources of ~5Moz and initial concepts envisaging 250-300kozpa gold production. BUY maintained and target price of IDR 1,257ps.
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