Far East Gold has signed a memorandum of understanding (MoU) with Indonesian mining group PT Puncakbaru Jayatama (PTPJ) to pursue gold production and funding opportunities.
The MoU sets a framework for FEG to potentially acquire a controlling interest in the Bengkulu gold project in Indonesia, while simultaneously unlocking portfolio-wide funding opportunities.
PTPJ brings over 30 years of Indonesian operational experience to the partnership, including a longstanding involvement at Gosowong, one of the country’s premier high-grade gold mines, which has produced more than six million ounces of gold.
The partnership focuses on assessing a staged development pathway at Bengkulu, leveraging the site’s historic open-pit prospects, Production Operation licence status, pilot carbon-in-leach (CIL) processing plant, and existing camp infrastructure.
Under the proposed structure, FEG intends to negotiate a staged acquisition where its ownership increase will be tied to key development and operational milestones.
Far East Gold Managing Director and CEO Shane Menere said the MoU represents a vital step in transforming the company into a producing business.
“This strategic alliance is an important step in building Far East Gold into a broader gold exploration, development and potentially producing business,” Menere said.
“We have assembled a portfolio of highly prospective assets in Indonesia and Australia, and our priority now is to translate that potential into tangible value through disciplined development, access to capital and the right operating partnerships.”
The companies have launched an initial 90-day implementation programme to execute independent valuations, conduct due diligence, complete transaction structuring, and advance financing discussions.
During this period, PTPJ has granted FEG exclusive dealing rights regarding the Bengkulu project.
In addition to Bengkulu, the joint initiative will seek strategic investment, joint venture partners, and project financing across FEG’s existing asset portfolio in Indonesia and Australia.
FEG’s objective remains to advance its existing portfolio while evaluating opportunities to strengthen operating capabilities, secure development capital and establish a potential pathway towards gold production.
