Adavale signs MoU on Astri Prima concession
Monday, April 30 2012 - 12:16 PM WIB
ASX-listed firm Adavale Resources Limited reported that the company has signed a Memorandum of Understanding (MoU) on Astri Prima concession in South Kalimantan.
The concession located in Kota Baru has secured IUP Production in an area of 198.5 hectares, the company said in its quarterly report.
It said that the results from 150 drill holes showed potential for an economic resource and the company will carry out technical due diligence to confirm the data.
On confirmation of data, the company has the option to proceed with the acquisition of 100% of Astri Prima for US$3.5m of which 20 percent of the acquisition price would be payable after determining of a 5 million ton JORC resource, 20 percent at commencement of mining with the remaining would be paid from the proceeds of production.
Editing by Adianto P. Simamora