Intrepid Mines shares have surged 29 per cent after the company agreed to allocate around five per cent of its shares to Indonesian media mogul Surya Paloh.

Mr Paloh is a prominent political and business figure in Indonesia who founded the 24 hour metro television network and the Media Group which publishes the Media Indonesia and Lampung Post newspapers.

Intrepid has agreed to place more than 27 million shares of the company’s expanded issued capital in Mr Paloh’s name for an undisclosed amount subject to provisional approval.

Mr Paloh is reportedly active within Indonesia’s Golkar political party.

Intrepid chief executive Brad Gordon said Mr Paloh was well-placed to assist in promoting the company’s profile and business interests within Indonesia.

“Mr Paloh, whose extensive networks and vast experience in navigating the waters of Indonesian business will greatly benefit the company both in safeguarding its existing interests in Indonesia and in expanding within the local resources sector,” Mr Gordon said.

He said Mr Paloh had extensive interests in oil and gas operations and the hotel and property sectors.

Mr Paloh’s involvement comes less than a week after Intrepid posted a first half loss of $US31.97 million ($A30.86 million) and said it aims to resolve joint venture problems and legal issues at its Indonesian operations.

Less than a fortnight ago 660 company workers and seven expats were ordered from Intrepid’s Tujuh Bukit gold-silver-copper project in Indonesia following a breakdown in relations with its minor Indonesian joint venture partner Indo Multi Niaga (IMN).

Intrepid shares were seven cents, or 29 per cent, higher at 29 cents on Wednesday.