Asiamet seeks additional suspension of Beutong IUP exploration
Friday, June 3 2016 - 03:04 AM WIB
TSX-listed Asiamet Resources Ltd is seeking for an additional one year suspension of its Beutong IUP exploration mining business permit as the company is still in the process of finalizing the conversion of the exploration permit into IUP production.
Asiamet, which holds an indirect 40 percent interest in the Beutong gold project in Aceh, said in a statement Monday it has been focused on the conversion of this IUP exploration to an IUP production.
Following a number of delays related to implementing regulations associated with the Mining Law, this conversion is now in the latter stages of the approvals process. A final presentation to the Ministry of Energy and Mineral Resources is scheduled for May 31, 2016 and a decision on the grant of the IUP production is expected shortly thereafter. Approval of the IUP production would secure long term mining title valid for 20 years, extendable for two subsequent periods each of 10 years? duration, the company explained.
Under Indonesian Mining law the holder of an IUP exploration is guaranteed an IUP production provided all requirements have been met, and an IUP exploration cannot be terminated if there has been an application made to convert to an IUP production.
?Irrespective of this provision, the Company has also requested an additional one year suspension of the Beutong IUP exploration to ensure continuity of title during the final stages of the IUP conversion process. The Beutong IUP exploration would otherwise expire on June 15, 2016,? Asiamet said.
According to Asiamet website, the holder of the Beutong IUP is PT Emas Mineral Murni, (PT EMM) an Indonesian company. PT EMM is owned 80 percent by Beutong Resources Pte Ltd. (Beutong Singapore), a Singapore company. Beutong Singapore is owned 50 percent by Tigers Copper Singapore No. 1 Pte Ltd. (Tigers Singapore), which is owned 100 percent by Asiamet Resources Limited. Therefore, Asiamet holds an effective 40 percent interest in the Beutong IUP at this stage. PT Media Mining Resources (PTM) owns the remaining 20% of the shares of PT EMM.
Pursuant to a joint venture agreement between PTM and Tigers Singapore dated February 11, 2011, as most recently amended November 19, 2014, Tigers Singapore can increase its shareholding in Beutong Singapore from its current 50 percent ownership to 100 percent by completing expenditure and development milestones so that it can ultimately hold an effective 80 percent interest in the Beutong IUP.
Editing by Reiner Simanjuntak