Canadian firm to acquire gold and copper-gold projects in Indonesia

Canadian miner listed in the TSX Venture Exchange East Asia Minerals Corporation announced Wednesday it had signed MoU to acquire four epithermal gold and porphyry copper-gold projects in Indonesia.

The company did not give the projects? names or locations.

The company claimed that the projects were advanced ones with drill-identified mineralization and the potential to host multi-million ounce near surface gold resources.

?The Company intends to form joint ventures with various Indonesian partners to explore for gold and copper-gold on these projects through 8th Generation Contracts of Work (CoWs),? it said.

Under the MoUs, East Asia will initially own 80% of the Joint Venture Company in three of the agreements, and 85% of the Joint Venture Company in the other, and will carry the partner through to completion of a bankable feasibility study. Thereafter the partner will contribute or dilute. Less than 10% equity in the Joint Venture Company will automatically convert to a 7% net profits interest (NPI). A one time signing bonus of USD 25,000 will be paid to the partner upon signing of the CoW.

East Asia has completed geological due diligence on the properties. Title searches, to ensure the properties are free of encumbrances and conflicting claims are being conducted in the Provincial capitals and in Jakarta, and are expected to be completed within a month. Once title is verified the joint venture agreements will be finalized. (alex)