Niche Capital Emas Holdings Berhad's Board of Directors has announced a recent development in its business ventures. On July 12, 2023, the company entered into a memorandum of understanding (MOU) with PT Advance Nickel Energy (PT ANE) to establish a basis for cooperation and collaboration. The primary objective of this partnership is to undertake a proposed nickel venture in Indonesia. It is important to note that the MOU is non-binding, serving as a platform for discussions and further negotiations between the parties involved. Its validity depends on the execution of a definitive agreement.
Niche Capital Emas Holdings Berhad (NICE) is seeking to invest in and enter the mining industry through various potential arrangements with PT ANE. These arrangements may include, but are not limited to: a) acquiring shares or subscribing to shares in PT ANE, b) establishing a joint venture or business collaboration in mining services, mining transport, and sale business, c) cooperating on contractor works, d) entering into off-take arrangements with authorized mining license holders, or e) exploring other permissible arrangements under Indonesian laws, as mutually determined by the parties. The initial term of the MOU is three months from the date of signing, with the possibility of extension by written agreement.
NICE's rights under the MOU include conducting comprehensive legal, commercial, and business due diligence and feasibility studies related to the proposed collaboration. This assessment aims to evaluate the potential benefits and considerations involved in pursuing the Planned Cooperation. However, no payment or reimbursement will be made to PT ANE until a more definitive cooperation agreement is mutually agreed upon.
The obligations of NICE and PT ANE within the MOU encompass working together in good faith to realize the Planned Cooperation. This involves facilitating communication, exchanging information, data, and relevant documents, as well as upholding confidentiality provisions. Both parties are responsible for any costs incurred during the implementation of the MOU. PT ANE, additionally, must provide all requested documents, including those necessary for NICE's due diligence process, and notify NICE of any material business plans that could significantly impact the ongoing due diligence exercise and the Planned Cooperation. Furthermore, PT ANE must ensure the cooperation of any third party with a valid mining business license by providing the required documents and information to NICE or its appointed advisers.
Termination of the MOU can occur through mutual agreement, the signing of a definitive agreement, or if Indonesian law or government policies prohibit the Planned Cooperation.
The MOU is governed by Indonesian law and is executed in both English and Indonesian languages. In case of any disputes, the parties involved will seek resolution through deliberation to reach a consensus. Despite any disputes, the parties remain obligated to implement the terms stated in the MOU.
Image source: NICE
