Perla Global Capital Advisors Announces Restructure and Capitalization of PT Galuh Cempaka Diamond Mine, Indonesia

LOS ANGELES, Dec. 30, 2016 /PRNewswire/ — Perla Global Capital Advisors is pleased to announce its Advisory Engagement Mandate for the Restructure and Capitalization of PT Galuh Cempaka Diamond Mine in South Kalimantan, Indonesia and related companies, wholly owned by HBS Resources (Singapore) Pte. Ltd. of Singapore and HBS Resources Pty. Ltd. Australia.  Mr. Fernando Serrano, Principal & Managing Director, shall be elected to the Board of Directors and assume the position of Director of Capital Markets and Chief Strategist Officer.    

Mr. Trevor Hines, Chief Executive Officer of HBS Resources (Singapore) Pte. Ltd of Singapore, stated, “The Indonesian market has undergone significant change in the last 10 years.  Our knowledge of the project, its high correlation between the drill results and diamonds produced, plus the advances in low cost mining gives us great confidence in this development,” Mr. Harold Hines, Chairman of the Board of HBS Resources Pty Ltd, Australia stated. “Based upon our considerable experience and the new mining technology available today, we believe the Cempaka Diamond Mine is an ideal platform for the development of a very significant Asian based diamond and precious metals business.”

“We are pleased to have such a mandate, as we have unique knowledge of Latin American and Asian companies who have an interest in the participation in the Diamond Industry, outside their core mining activities, in particular those mining gold, silver, copper and iron ore.  Furthermore, Mr. Hines’ acquisition of the PT Galuh Cempaka Diamond Mine and related companies immediately created intrinsic value for its shareholders following our due diligence review,” Mr. Serrano stated.

“We are confident in the outlook of Indonesia and the Diamond Industry as revealed through our research and due diligence review. Furthermore, Fitch revised Indonesia’s outlook to positive and affirmed Investment Grade at ‘BBB-‘ according to a recent Fitch Ratings-Hong Kong news release,” Mr. Serrano stated.  

According to The De Beers Diamond Insight Report 2016, Bank of America Merrill Lynch and Morgan Stanley reported polished diamond value (in nominal US dollars) is expected to expand at a Compound Annual Growth Rate (CAGR) of 4% between 2016 and 2022 and global supply of rough diamonds (in carats) is expected to expand at a CAGR of 3% between 2016 and 2022, peaking in 2021. Global production to remain stable at 2015 level of 126 million carats. The value of diamond jewelry sold in 2015 reached an estimated US$79 billion while Global rough diamond sales to cutting centres for 2015 reached an estimated US$13.7 billion.

A member of the G20, Indonesia is the largest economy in the rapidly growing region of Southeast Asia with GDP of $2.842 trillion (2015 est) and exports of $148.4 billion (2015 est) and major export partners of Japan, US, China, Singapore, India, South Korea and Malaysia. It ranks as the world’s fourth most populous country and third largest democracy, offering political stability, a large domestic market and rich and diversified natural resources. Building on Indonesia’s growth momentum, its new leadership has committed to implementing a series of structural reforms in order to stimulate investment, notably by improving the business environment and increasing infrastructure spending as stated by Mr. Angel Gurria, OECD Secretary-General in Active with Indonesia OECD.   

About Cempaka Diamond Mine

The Cempaka Diamond Mine is located near the coast in the Province of South Kalimantan, Indonesia, on the island of Borneo. Although the region is the second oldest source of recovered diamonds in the world, which supplied European markets in the seventeenth century, no commercial operations have been in existence since that time.  This situation changed in 2004 when Indonesia once again began supplying fine quality gem diamonds to the world markets.  PT Galuh Cempaka owns 80% of the Project with the remainder held by the Indonesian Government through PT Aneka Tambang.  PT Galuh Cempaka, the local operating company, is the holder of a 7th Generation Production Stage Contract of Work which grants the holder a permit to mine for 30 years, extendible for an additional 20 years.

JORC estimate of the Cempaka Diamond Mine Resources is carats/bcm of 0.16, 0.08, and 0.05 with recovered 40,000, 1,077,000 and 1,302,850 respectively for a total of 2,419,850 recovered carats.  There are indicated resources of 5.1 million bcm of which 4.9 million is contained in the Cempaka channel and the balance of .2 million bcm remained in the Danau Seran channel according to 2007 report.  No drilling was carried out during 2011 to 2014 as the Cempaka Diamond Mine was on care and maintenance.  In excess of 150,000 metres of drilling has been completed on the Contract of Work area with a total expenditure of the order of US$6 million.

About Perla Global Capital Advisors
Perla Global Capital Advisors is a worldwide investment banking advisory services firm serving the markets of USA, Europe, Asia, Latin America and Africa with origination and research office location representation in London, New York, Los Angeles, Mexico City, Paris and Singapore.  Perla Global Capital Advisors has proven results, a proven track record, and a high standard of Due Diligence and Business Policy Practices within its worldwide transactional experience in over 20 key industry sectors.

Perla Global Capital Advisors, provides clients with expertise in Advisory work for Debt and Equity Capital Formation, Structured Financing, Advisory work for Merger & Acquisitions, Advisory Work for Special Situations including restructurings, spinoffs, divestitures, cross-border Joint Ventures, Leverage Buyout, Management Buyout, defense strategies for hostile takeover or friendly shareholder buyout.

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