Australia's Magnum Gold cancels Lampung gold project acquisition
Friday, September 30 2005 - 05:56 AM WIB
Australian mining firm Magnum Gold NL decided not to proceed with the acquisition Way Linggo gold project in Lampung following unsatisfactory due diligence result.
The company in its recent report did not give further detail.
The company signed in June a Letter of Intent to purchase the project for US$3 million cash and 9 million of its shares pending the result of due diligence.
Way Linggo has been explored, initially by Ashton Mining Limited and later by Meekatharra Minerals Limited.
Magnum earlier said the project?s vendors had already successfully modelled a mining technique using a production rate of 60,000 tonnes per annum over a period of 6 years to produce totals of 135,000 ounces of gold and 1,350,000 ounces of silver at average operating costs of approximately US$200 per ounce.(alex)