GMN hopes to complete acquisition of GFN in November

By Ruli Setiawan

ASX-listed Western Mining Network Ltd (WMN) said that acquisition of PT Grafindo Nusantara (GFN) is proceeding, with 90 percent of the documentation completed.

?An extension of the time has been agreed by both parties to close the transaction, which is expected to occur in November,? WMN said in a statement Friday.

GFN owns two graphite tenements in Jangkang district West Kalimantan.

This opportunity adds to the portfolio of graphite mining assets the company is acquiring to build an integrated carbon business with its South Korean partners. In combination with the Tamboli asset, it strengthens the company?s long term plan to use Indonesian graphite to feed into a larger downstream business in Asia, the company has said.

Elsewhere, WMN said in the statement that on August 3, 2015, the company was granted a Mining Licence known as an IUP-OP (Ijin Usaha Pertambangan ? Operasi Produksi) for graphite mine at the Tamboli project, Southeast Sulawesi.

?This is a significant milestone for the project, as the certificate is valid until August 3rd, 2020 and can be extended by two periods of five years beyond that date,? WMN said.

This gives the company a total of at least 13 years of operation at Tamboli, assuming a full scale production plant is commissioned by mid-2017.

WMN last year acquired 75 percent of PT Mekongga Sejahtera and a 40 percent interest in PT Eagle Rich Nusantara, giving the company access to the 98.04Ha Mekongga?s graphite tenement in Tamboli, Kolaka, Southeast Sulawesi as well the potential graphite beneficiation and industrial estate establishments.

Editing by Reiner Simanjuntak