Austindo cancels acquisition of Aurora Gold?s N. Sulawesi gold project

Australian listed gold explorer Austindo Resources Corporation said Thursday that it would not proceed with earlier plan to acquire Aurora Gold?s North Sulawesi gold prospect following a due diligence conducted by Austindo.

?Following a due diligence process it has been decided not to proceed with the Toka Tindung acquisition due to perceived risks associated with various non-technical issues,? said the company in its statement.

The company said it would continue to prioritize the advancement of its Cibaliung Gold Project in Banten Province in western Java.

Aurora Gold earlier offered to divest its stake in Toka Tindung project due to rampant illegal miners at the mine site and local government had not done anything to stop them.

Separately, Alan Scott, Aurora's managing director and CEO said following Austindo's decison to cancel the acquisition Aurora will now review other options regarding the divestment.(alex)