Herald offers to sell part of stake at N. Sumatra zinc/lead project

ASX-listed mining firm Herald Resources Limited announced on Monday that it has started offering 29 percent stake at its Dairi zinc/lead mine in North Sumatra for sale.

?The company is seeking project funding and the entering into an offtake agreement in exchange of the sale, although the company is prepared to consider alternative structures for the sale,? the company said in a statement.

The company did not say if it had already attracted potential buyers.

Herald was controlled by IDX-listed mining giant PT.Bumi Resources Tbk, which major shareholders PT. Bakrie & Brothers is currently struggling to raise funds to pay for its debts.

Herald was acquired by Bumi through hostile take over on July 2008.

Herald has 80 percent stake in the Dairi mine with state miner PT.Aneka Tambang (Antam) controlling the balance.

Herald and Antam plan to develop Dairi zinc/lead project to process 1 million tons of ore per annum and to produce between 220,000 and 100,000 tons of zinc and lead concentrates annually.(alex)