Iriana, Placer Dome sign option agreement on Irian Jaya copper, gold projects
Monday, November 5 2001 - 04:01 PM WIB
Canadian junior mining firm Iriana Resources Corporation announced on Monday the signing of option agreements with a subsidiary of another Canadian miner Placer Dome Inc which gave the latter option to acquire interests in the former?s adjoining Idenburg and Senggeh gold-copper properties, located in Papua Province.
These properties are held under Contracts of Work by PT Iriana Mutiara Idenburg (``Idenburg'') and PT Iriana Senggeh (``Senggeh''), 95 percent owned indirect subsidiaries of Iriana.
According to Iriana?s statement, the option agreements give Placer Dome exclusive rights to continue to conduct due diligence, including fieldwork and to decide before January 31, 2002, whether to proceed with further exploration and ultimately, development of either or both of these properties through joint ventures (?JV?).
Under the Senggeh JV, Placer Dome would earn a 51 percent interest in the property by funding US$1,500,000 exploration expenditure over the next two years and an additional 29 percent interest by sole funding completion of a feasibility study.
Under the Idenburg JV, Placer Dome would earn a 51percent interest in the property by completing US$2,500,000 of exploration expenditure over the next two years and an additional 29 percent interest, by sole funding completion of a feasibility study. Further, Placer Dome would make cash payments totalling US$755,000 to Iriana and Eloquent Enterprises Ltd., the existing option holder at Idenburg.
Iriana Resources is listed in Toronto Stock Exchange. (alex)