Aussie firm Palace to acquire W. Papua coal projects
Saturday, October 30 2010 - 02:09 AM WIB
The acquisition, which is subject to due diligence and shareholders' and regulatory approval, will be completed via acquisition by Palace of Primecity Holdings Pty Ltd, which has the right to acquire a 75 percent interest in PT. West Papua Mining's (WPM) three projects in the West Papua.
WPM has three operating companies, that is PT Mier Natural Resources which is prospecting for coal in a concession of 500 sq km; PT Jovehi Indo Resources which is prospecting for coal in a 500sq km concession; and PT Hiyejo Indo Gold prospecting for gold and coal over 970 sq km concession.
The concession covering areas of approximately 1,970 sq km and located close to existing roads and operating ports and adjacent to significant acreage held by a coal investment company.
Coal outcropping is clearly evident on the tenements adjacent to and immediately along strike from those to be acquired by Palace, with one 2.5m outcrop containing high-grade, semi-soft metallurgical coal. Geologists have reported numerous outcrops on the Palace leases.
Palace has assembled a team of five geologists who will start collecting samples for metallurgical testing. Engineers are due to arrive at the site to begin scoping studies to upgrade the existing port to enable it to handle bulk materials.
An aggressive exploration program is currently being planned in conjunction with SRK Consulting. This will see as many as seven drilling rigs in operation from mid November as part of Palace?s strategy to calculate a maiden JORC resource within six months.
The IUPs are valid for seven years and will allow Palace to conduct exploration including surveying, drilling and other surface activities with the guarantee of a Production License at the conclusion of the exploration phase.
As part of the acquisition, Palace intends to appoint former Griffin Group senior executive Fredenk Suhren as managing director. (denny)