Australia?s Magnum appoints consultants to review Lampung gold project

Australian mining firm Magnum Gold NL has appointed Ted Mein & Associates of Perth and PricewaterhouseCoopers (PwC) of Sydney and Jakarta to accelerate the due diligence process on its plan to purchase the Way Linggo gold project in Lampung.

Magnum recently said that Ted Mein will manage the technical due diligence to review existing material including mineral resource estimation, metallurgical testwork completion, process design, ore reserve estimation, capital and operational expenditure estimations, and geological modeling for narrow vein mining.

Meanwhile, PwC will conduct the commercial due diligence that will initially include review of the existing Contract of Work (COW), examine the conditions attached to the COW, examine the royalty stream, advise on taxation and other local implications, review the structures and financial considerations of the companies being acquired, and advise on key risks for Stage 2 of the due diligence.

?Upon completing the purchase of the Way Linggo project Magnum Gold NL will immediately put in place an exploration program in an effort to considerably increase the existing gold reserves,? the company added.

Magnum earlier estimeted it would pay US$3 million in cash and 9 million of its fully paid shares for the purchase of the gold project. (Robert)