Key Highlights

  • Far East Gold signed an MoU with PT Puncakbaru Jayatama (PTPJ) on 22 October 2026 to pursue the potential acquisition, development and operation of the Bengkulu Gold Project.
  • The MoU runs for six months, is principally non-binding and includes 90 days of exclusivity for PTPJ on Bengkulu.
  • A 90-day programme sets out information exchange within 30 days, Due Diligence review within 60 days and definitive documents within 90 days.

Far East Gold Limited (ASX:FEG) has signed a memorandum of understanding with Indonesian group PT Puncakbaru Jayatama (PTPJ) to pursue the potential acquisition, development and operation of the Bengkulu Gold Project, and to seek funding across its existing portfolio. The MoU was signed on 22 October 2026 and announced on 23 October. The company describes itself as a copper and gold explorer with six projects in Australia and Indonesia, led by chief executive and managing director Shane Menere.

PTPJ was established in 1991 and is led by President Director Daud Erikson Silitonga. The company reports more than 30 years of exploration and Mining experience in Indonesia, including involvement at the Gosowong gold operation, which it says has produced more than six million ounces in total.

Bengkulu has a historical mining area, reported Production Operation licence status, an existing pilot carbon-in-leach plant and camp infrastructure. PTPJ has identified a northern open-pit prospect and a central historical mining area. No date for the start of production has been set.

Proposed staged structure

The MoU provides a framework for a Conditional Share Purchase Agreement under which Far East Gold would seek a controlling interest in the company that holds the Bengkulu licences. Three stages are envisaged. The first is an initial Acquisition after due diligence, independent valuations and agreed commercial terms, subject to approvals. The second links an increased ownership stake to pilot plant commissioning, plant performance and operational milestones. The third links further ownership to sustained production, verified resource growth or an approved expansion programme.

Ownership percentages, consideration, expenditure commitments and completion dates are all still under negotiation. Any Far East Gold share consideration would be informed by independent valuations and an agreed pricing methodology, subject to approvals. PTPJ would coordinate engagement with the project and licence-holding entities and contribute technical expertise, operating relationships and access to potential partners, while Far East Gold would lead structuring, Capital Markets activity and integration with its portfolio.

Funding and the wider portfolio

The company says it would also use the arrangement to pursue funding for its broader portfolio, which it describes as including two projects held under Contracts of Work, Trenggalek, which holds a Production Operation stage licence, and Idenburg. Potential structures include strategic equity, project-level financing, joint ventures, earn-in agreements and offtake-linked arrangements. Within the 90-day programme, Far East Gold intends to assess its capital requirements for the next 12 to 24 months.

Neither party has committed to provide or procure funding.

Terms, conditions and risks

The MoU runs for six months and is principally non-binding. Binding provisions cover confidentiality and market communications, term and termination, costs and exclusivity, under which PTPJ agrees to deal exclusively with Far East Gold (ASX:FEG) on Bengkulu for 90 days. The MoU does not transfer any project interests, issue any Far East Gold shares or create binding acquisition, expenditure or financing obligations.

Completion of any transaction would depend on satisfactory due diligence, independent valuations, execution of definitive documents, and the necessary board, shareholder, ASX and Indonesian regulatory approvals, along with third-party consents. The company states there is no assurance that definitive agreements will be signed, that financing will be secured or that production will be achieved.

Next milestones

The announcement sets out a 90-day programme running from the date the MoU takes effect, coordinated by a joint working group. Within 30 days the parties plan to exchange technical and commercial information, appoint independent valuers and seek agreement on a term sheet. Within 60 days they intend to review initial due diligence findings and prepare preliminary development and funding plans. Within 90 days they aim to seek agreement on definitive transaction documents and implementation arrangements.