CVM, Harita in Aceh iron ore exploration deal
Saturday, February 26 2011 - 03:30 AM WIB
Hong Kong-listed firm CVM Minerals Limited announced Friday that its indirect Indonesian subsidiary PT Rimbaka Mining Makmur (RMM) has on Feb 25, 2011, signed an MoU with PT Harita Mineral Jaya Abadi to cooperate on an iron ore mining venture in Aceh.
Under the MoU, Harita will conduct due diligence review on the project for one year to determine its feasibility.
RMM is a holder of an exploration right in an area of 1,500 hectares located in Penuntungan Village, Penanggalan Subdistrict, Kota Subuluhsalam.
If the due diligence result proves to satisfactory, the parties may enter into the Cooperation Agreement, which will set out the terms and conditions of the operation and management of the Project, including a mechanism to share the net profits of the Proposed Transaction on a 70 (Harita): 30 (RMM) basis, subject to negotiation and formal agreement.(alex)