DC Advisory advised Far East Mining Pte Ltd on a limited solicitation process that resulted in a private equity injection via a convertible loan structure

Despite the challenging investment climate for minerals and resources, DC Advisory (DC) conducted a limited solicitation process to a select group of investors which resulted in Zana Capital investing into FEM via a convertible loan structure and providing FEM an attractive valuation.

FEM, a Singapore registered private company majority owned by reputable Singaporean and Indonesian entrepreneurs, is in the business of mining and selling nickel ore.

FEM is an owner of three separate concessions of nickel mines located in Indonesia totalling close to 20,000 hectares with 100 million tonnes of measured and indicated resource of nickel ore.

As a result of the Indonesian government’s ban on export of nickel ore, various strategic players have been approaching Indonesian nickel miners to form JVs in order to set up nickel processing plants to secure a continual stream of nickel related products.

FEM was also approached by multiple parties, and it is evaluating its options at the moment.

Zana Capital is a leading private equity firm which provides growth capital to companies in Asia.

Its portfolio consists of companies in a diverse range of industries including pharmaceutical, logistics, manufacturing, consumer, mining, and environmental engineering.