Borneo Resource to acquire new gold mine
Friday, March 29 2013 - 08:22 AM WIB
Borneo Resource Investments Ltd recently stated it has signed a purchase agreement with PT Puncak Kalabat to acquire 100% ownership in a 30 hectare Ratatotok Property in the Southeast Minahasa Regency of the North Sulawesi Province, approximately 3 hours east of the regional capital of Manado and lies on a gold reef formation which runs east to west along the coastal area.
The acquisition includes a perpetual license from the Southeast Minahasa Regency as an exploration and production permit, the company said in a statement Thursday.
Although there are currently no mining operations on the Ratatotok Property, mining activities are being pursued in the areas immediately adjacent to the property by entities from Singapore, Taiwan, Korea and China.
Borneo has made one payment to secure the acquisition, with further scheduled payments totaling $2 million to be made by the end of 2013 to complete the acquisition.
"I am very pleased that we were able to quickly negotiate this second agreement with Puncak to expand our gold concession portfolio to 80 hectares. The entire area, of which the Ratatotok Property forms a part, has been subject to ongoing geological survey. In support of our efforts, we are fortunate to have retained the services of a local geologist who was instrumental in the original survey work undertaken in the region," Borneo's Chief Executive Officer Nils Ollquist commented.
Editing by Er Audy Zandri