Aussie firm eyeing to acquire manganese, coal properties

Australian firm Sam?s Seafood Holdings Limited (proposed to be renamed as Pan Asia Corporation Limited) announced Wednesday that it was in talks to acquire manganese and coal properties in Indonesia.

The company had entered into a HoA to acquire 100% of Innovation West Pty Ltd (IW), for a cash payment of US$100,000 and the issue of 300 million ordinary shares in the company.

IW has entered into agreements to acquire a 55% interest in four manganese holdings in East Nusa Tenggara province covering 2,632.2 hectares.

Sam?s Seafood is to provide funding of $1.5 million, by way of a loan, to the current owners for the purchase of the necessary plant and equipment to enable the realization of their plans to commence an initial mining operation targeting production of 200,000 tpa with planned increases thereafter and to evaluate the substantial database with a view to developing an extensive exploration and evaluation program. Success here could provide a sound platform to expand the initial mining operations and develop any resources to Australian JORC standards.

The funding of the $1.5 million is to be repaid preferentially out of the net proceeds from the manganese operations and thereafter, the Company will receive a 55% net profit share. The loan is to be secured against the plant and equipment to be acquired and against the shares of the current permit/title owner.

?The company has been advised that the current owners are in discussions with several international groups regarding potential off-take arrangements for the initial targeted production. IW is to give its prior written approval of the terms of any off take that may develop,? it said.

?IW has advised it is also at an advanced stage of negotiation to acquire an interest in a KP in South Kalimantan, Indonesia adjacent to an existing significant coal mining operation,? it added without giving detail. (denny)