CVM acquires 51% shares of Laksbang Mediatama, resolving conflicts

By Puspita Maylana Devi

Hong Kong-listed CVM Minerals Limited recently announced it has completed the acquisition of 51 percent shares at PT Laksbang Mediatama (PTLM) from Step Pacific Development Limited.

PTLM is the holder of an exploration mining permit for the exploration of manganese in a 195 hectares area at Jatimulyo Village, Girmulyo Subdistrict, Kulon Progo Regency, Yogyakarta Province.

"The exploration process had commenced since the completion of Acquisition. However, the activities had slowed down because there were conflicts between the directors of PTLM and the legal representative of PTLM. According to the legal requirements in Indonesia, the legal representative of PTLM is responsible for daily operations of PTLM and the exploration activities." the company said in a statement submitted to the Hong Kong Stock Exchange.

In order to resolve such conflicts, CVM had decided that the members of the board of directors of PTLM shall be re-nominated and re-elected according to the relevant legal requirements in Indonesia. However, having made all reasonable enquiries, the Board found that the legal representative of PTLM could no longer be contactable. This caused the suspension in the daily operations of PTLM including its exploration project. Therefore the company stated that it will replace the legal representative of PTLM to restart the daily operation and exploration activities of PTLM.

"In light of the circumstances that the legal representative of PTLM is not contactable and the board of directors of PTLM will be re-nominated, the company has decided to slow down all exploration activities of PTLM. At the same time, PTLM will remain in a state of readiness to restart exploration as soon as the issues have been resolved. The company will actively monitor the status and will discuss with the relevant parties to resolve the issues," CVM said.

Editing by Er Audy Zandri