Interra Resources Announces Bold Move into AI Tech: US\$1.2 Million Stake in Indonesia’s Nexa Core Teknologi

Key Investment Highlights

• Interra Resources Limited, through its wholly owned Indonesian subsidiary PT Interra Resources Indonesia Investment (IRII), has entered into a Share Subscription Agreement with PT Nexa Core Teknologi (NCT), a newly incorporated Indonesian AI chip company.
• Investment Amount: US\$1,200,000 for 1,445,783 shares, securing no less than 12% stake in NCT upon completion.
• NCT’s Focus: Development of artificial intelligence (AI) technologies and manufacturing AI chips, aiming to build a localized, autonomous chip-to-application AI hub for deployment-ready toolchains.
• Leadership: NCT is led by Thomas, co-founder of NASDAQ-listed Nano Labs Ltd., with a team of semiconductor and computer engineering veterans.
• Strategic Partnership: NCT signed an MoU with Indonesia Chip Design Collaborative Center (Sept 2025) to jointly develop semiconductor chip products and foster a sustainable industry ecosystem.
• Governance: IRII will have the right to appoint a director and commissioner to NCT’s board as long as its stake remains above 10%.
• Funding: IRII’s investment is funded by an increase in its share capital, fully subscribed by Interra Resources (Borneo) Pte. Ltd., its 99.997% owner.
• Financial Impact: The transaction is “discloseable” under SGX rules (Rule 1006(c)), with a relative figure of 6.82% vs. market cap, but is not expected to materially affect net tangible assets (NTA) or earnings per share (EPS) for FY2025.

Full Report Details for Investors

On 20 October 2025, Interra Resources Limited took a significant step into the burgeoning artificial intelligence (AI) and semiconductor sector by investing US\$1.2 million into PT Nexa Core Teknologi (NCT). This move aligns with Interra’s strategic intent to diversify beyond its core petroleum exploration and production business, tapping into cutting-edge technological sectors that may offer outsized returns and portfolio resilience.

About PT Nexa Core Teknologi

NCT, incorporated on 17 June 2025, is an Indonesian limited liability company aiming to become a leading local AI chip development and manufacturing hub. Its business strategy centers on providing application-driven enterprises with deployment-ready AI tools, supported by a team led by Thomas, who brings top-tier experience from NASDAQ-listed Nano Labs Ltd. NCT’s management and R&D team hail from renowned semiconductor and computer engineering backgrounds, offering a competitive edge in innovation and execution.

NCT has already established early industry credibility by signing a memorandum of understanding with the Indonesia Chip Design Collaborative Center, targeting joint R&D and ecosystem building for Indonesia’s semiconductor industry—a sector receiving significant attention from both government and private players.

Transaction Structure and Terms

• IRII will subscribe for 1,445,783 NCT shares at US\$1.2 million.
• Completion is subject to multiple conditions, including no material adverse changes at NCT, continued accuracy of representations and warranties, and absence of material breaches.
• Post-investment, IRII will hold a minimum 12% stake and may appoint a director and commissioner to NCT’s board, ensuring a voice in strategic direction and governance.
• Funding for the investment is secured by increasing IRII’s authorized and paid-up capital, with Interra Resources (Borneo) Pte. Ltd. holding nearly 100% of IRII.

Financial Impact & Regulatory Disclosure

This investment qualifies as a “discloseable transaction” under SGX rules, with the consideration amount representing 6.82% of the company’s market capitalization. Notably, it does not require shareholder approval at a general meeting. The investment is not expected to materially impact Interra’s net tangible assets or earnings per share for FY2025, based on pro forma calculations using FY2024 financials:

• NTA per Share: Remains at US\$0.0567 before and after investment.
• EPS: Unchanged at US\$0.0066 per share.

No directors or substantial shareholders have direct or indirect interests in this investment, and no new director appointments or service contracts are proposed as part of the transaction.

Strategic Rationale

The move signals Interra’s commitment to explore new business areas beyond energy, leveraging its Indonesian platform to participate in the rapidly growing AI and semiconductor sectors. NCT’s strong leadership team and industry partnerships position it as a potential growth engine, with Interra’s investment providing early access to value creation in a sector expected to attract significant capital and policy support in Indonesia.

Potential Share Price Sensitivity

• Entry into a high-growth sector: Interra’s diversification into AI chip manufacturing could attract investor attention and re-rate the stock, given the global focus on semiconductor security and supply chains.
• Early-stage partnership: The lack of financials and valuations for NCT means the investment is speculative and carries risk, but also significant upside if NCT achieves its goals.
• Governance rights: Board representation ensures Interra can influence strategy and protect its investment.
• SGX regulatory status: The transaction is significant enough to require disclosure but does not trigger shareholder approval, reducing procedural uncertainties.

About Interra Resources Limited

Interra Resources is a Singapore-listed petroleum exploration and production company with expanding interests in renewable energy (floating solar farms), silica sand concessions, and now advanced technology via its stake in NCT. It also holds 12.24% in ASX-listed Morella Corporation Limited, focused on critical minerals in Australia and the US.

Conclusion: Is This a Game Changer?

Interra’s investment in PT Nexa Core Teknologi marks its entry into the high-potential AI and semiconductor sector in Indonesia, backed by proven leadership and strategic partnerships. While immediate financial impact is neutral, the move could re-define the company’s growth profile and investor perception, especially as NCT develops its business and technology pipeline. The lack of public valuation and financials for NCT adds risk, but also the potential for substantial long-term upside if the venture succeeds.

Disclaimer

This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence and consult professional advisors before making investment decisions. The information presented is based on public disclosures by Interra Resources Limited as of October 2025 and may be subject to change.

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