Canada's Apolo Gold acquires Lampung gold property

Vancouver based mining company Apolo Gold Inc. announced on Monday that it had entered into an agreement with local mining firm PT Metro Astatama to explore the latter?s mineral property located in the region of Bengkunat in West Lampung.

Apolo Gold said the agreement would give the company the right to develop the property and receive 60 percent of the net profits.

Apolo will have operating and management control and be responsible for testing and exploring, and arranging for preparation of engineering reports as well as an ultimate mine plan for the property.

Consideration for this agreement is the issuance of 1.5 million restricted common shares of the company to each of two parties, for a total of 3 million common shares. Apolo will undertake to complete an engineering report on the property by Sept. 30, 2002. PT Metro Astatama has undertaken within 18 months to provide necessary equipment financing for the project.

Should PT Metro fail to provide adequate equipment financing within the 18-month period, its 40 percent interest will be reduced to 20 percent and Apolo will increase to 80 percent.

Previous testing has been carried out on the property and the conclusion was that there was extensive quartz brecia vein mineralization and that the ground had the potential for recovery of 1 million ounces of recoverable gold from mineable open pit operation. Apolo personnel will carry out additional mapping and sampling as soon as possible. (alex)