GobiMin in enters Indonesian nickel exploration venture

Canadian junior mining firm GobiMin Inc. announced Friday that its wholly owned subsidiary has invested in exploration projects with nickel laterite potential in Indonesia.

The company said it had entered into exclusive co-operation agreements with local companies which hold 4 exploration permits covering an area of 26,836 hectares in Banggai and Tojo regencies of Central Sulawesi.

In compliance with local mining laws, the exclusive co-operation agreements provide for the company to be the exclusive partner of these local companies in every respect from exploration, exploitation, transportation, processing to marketing and sales of the minerals in relation to the exploration permits.

The company said it may acquire further interest in potential nickel laterite projects in Indonesia.

"GobiMin is moving ahead with grass root exploration immediately," the company said.

GobiMin has already invested the capital cost of US$390,000 as part of the US$2,400,000 estimated total investment in these new nickel laterite projects. This estimated total investment includes capital injection, payments for exclusive co-operation agreements and costs related to the first phase of exploration. GobiMin will hold a 65% interest with the other 35% interest held by local partners.(alex)