Hartawan en-route to obtain Ciemas Gold Project
Thursday, August 2 2012 - 11:17 AM WIB
Singapore ? Catalist-listed Hartawan Holdings Limited recently stated it has on July 28 received a signed report entitled "Independent Technical Review of the Ciemas Gold Project; Ciemas, Sukabumi Region, Republic of Indonesia? prepared by SRK Consulting Hong Kong Ltd for PT Wilton Wahana Indonesia, a wholly owned subsidiary of Wilton Resources Holdings Pte Ltd, which the company planned to acquire since October 2011.
The report stated that measured and indicated resources of the Ciemas Gold Project were approximately 4.2 tonnes, including proved and probable reserves of approximately 3.9 tonnes at Pasir Manggu area, which were lower than the agreed tonnage. Yet SRK's estimated mineable materials of approximately 10.9 tonnes at Cibatu, Cikadu and Sekolah areas, in addition to exploration potential in five other areas within the Ciemas Gold Project reported in the review were taken into consideration by the company.
Hartawan also stated it has received a signed ?Independent Expert Report: Valuation of 100 percent Interest Value of The Ciemas Gold Project ? Valuation Date: 18 June 2012? issued to Wilton Resources Holdings by Greater China Appraisal Limited, dated 30 July 2012. The report concluded that a reasonable estimate of the fair market value in cash or terms equivalent to cash, as at the valuation date of 18 June 2012 is US$335 million.
"The valuation has exceeded the amount of US$280.5 million as the agreed minimum economic value of the measured and indicated mineral resources of gold in Concession Block 2 and the area in Concession Block 1 by approximately US$54.5 million," the company said in its second quarterly report submitted to the Singapore Stock Exchange, adding that the valuation has provided commercial basis for it to proceed with the proposed acquisition of Wilton Resources, including the variation of the S&P Agreement and the Convertible Loan Agreement.
Under the previously agreed S&P Agreement, completion of the proposed acquisition is conditional on, among others, the issuance of a JORC report stating that the measured and indicated mineral resources of gold in Concession Block 2 and the area in part of Concession Block 1 shall not be less than 60 tonnes measured and indicated mineral resources, of which at least 10 tonnes must be further classified as Probable and Proven Ore Reserves.
The agreement also obliged PT Wilton Wahana Indonesia and PT Liektucha Ciemas to have commenced extraction of gold ores from Concession Block 2, as confirmed by Wilton?s qualified professional mining engineers and Hartawan, within six months from Tranche 1 drawdown date, which was disbursed on November 3, 2011, or three months from Tranche 2 drawdown date, whichever is earlier, while the rate of production and mining extraction of gold ores shall not be less than an average of 600 tonnes of ore per day.
However, upon receiving the report, Hartawan and Wilton have agreed to vary certain terms of the S&P Agreement, deleting the condition precedent relating to measured and indicated gold resources tonnage, as well as prolonging the gold extraction date for both PT Wilton and PT Liektucha to September 2012. Condition precedent relating to the minimum production capacity has also been deleted while the definition of Longstop date has been amended to February 28, 2013.
This should prove as Hartawan's fixed intention to obtain Wilton and its Ciemas Gold Project.
Editing by Er Audy Zandri