Arc sells stake at Banten gold project to Antam
Monday, February 9 2009 - 12:14 AM WIB
ASX-listed firm Arc Exploration Limited announced on Monday that it will sell its entire interest in troubled Cibaliung gold project in Banten province to IDX-listed state miner PT.Aneka Tambang for US$1.
Under the binding HoA, Antam will also take over ANZ Bank?s interest in Cibaliung and will fund and manage Cibaliung with immediate effect.
Arc said that the decision to sell to Antam was taken after it was unable to find farm-in partner or funding for Cibaliung, and accordingly, a sale process was initiated in the latter part of 2008.
Arc?s Cibaliung project had been hit by several technical failures which drove up the investment needed to develop the project.
Cibaliung is a high-grade ephitermal gold/silver vein system located southwest of Jakarta in Banten province. Cibaliung is expected to produce at an overall annual rate of 70,000 oz (gold equivalent). (denny)