Krakatoa forms strategic alliance with RI?s Sitasa Group
Tuesday, December 10 2013 - 02:35 AM WIB
ASX-listed Krakatoa Resources Limited said Tuesday it has entered into a strategic alliance with PT Sitasa Resources, a holding company for the Sitasa Group of Companies, a well-established and highly successful exploration and mining company with a proven track record of success in Indonesian resource projects.
The company said in a statement it has signed a Share Purchase and Sale Agreement with Sitasa to acquire 99.8 percent of PT Bina Citra Sawita (BCS), which holds 100 percent interest in an iron ore exploration license in Solok Regency, West Sumatra.
The BCS Tenement covers an area of 500 hectares and is located in Nagari Alam Pauh Duo, Pauh Duo sub-district, South Solok, West Sumatra province.
In addition, Krakatoa will gain exclusive access to Sitasa Group?s pipeline of iron ore projects. There are currently five iron ore projects in the pipeline which are located in West Sumatra, Aceh, Central Kalimantan, and Central Sulawesi.
Sitasa Group?s high grade iron ore is currently being sold to some of the world?s largest steel producers.
The transaction is subject to ASX and any other regulatory approvals as well as Krakatoa electing to complete the transaction.
In addition to the Sitasa Group alliance, Krakatoa has secured up to A$5 million in funds to progress the development of its exploration projects in Indonesia. The funding arrangement consists of a A$5 million Standby Subscription Agreement from Gurney Capital Nominees Pty Ltd, a Melbourne based Investment Company.
Editing by Reiner Simanjuntak