Battlefield Mineral to acquire S. Kalimantan diamond project
Friday, November 9 2001 - 04:05 AM WIB
Canadian Venture Exchange (CDNX) announced on Thursday that mining firm Battlefiled Mineral Corp had signed agreements with Rio Tinto?s indirect subsidiary AML Exploration Pty Limited and a Malaysian Mining Corporation?s subsidiary Labohan Dagang Galian Sdn Bhd, which would allow Battlefield to acquire AML?s 60 percent shares and Labohan Dagang?s 40 percent shares in Ashton-MMC.
Ashton MMC holds 80 percent stake in PT Galuh Cempaka, which operates the diamond-mining project in South Kalimantan. The remaining 20 percent stake is controlled by Indonesian state miner PT Aneka Tambang Tbk.
CDNX said that the agreement was signed in August 30, 2001.
Earlier reports said that Rio Tinto tried to sell the project because it had not achieved the budgeted diamond and gold production.
CDNX said that Battlefiled would pay a 2 percent gross production royalty on the proceeds of any future diamond sales with an advance royalty payment of U.S.$200,000 which would be credited against future royalties payable.(alex)