Krakatoa signs Heads of Agreement to acquire 2 graphite projects
Thursday, June 18 2015 - 03:16 PM WIB
ASX-listed Krakatoa Resources Limited announced on Thursday that it has signed a Heads of Agreement (HOA) with Carbon Carbon Pte Ltd, providing Krakatoa with an option to acquire a 75% controlling interest in two graphite projects in Indonesia:
? the Bone Bay Graphite Project, a 99.48 ha exploration IUP (Mining Business Licence) located on the coastal road in the strategic mining region and port city of Kolaka, South East Sulawesi.
? the Laeya River Graphite Project, a 98 ha exploration IUP situated within the graphite prospective ?Mekongga? geological formation close to the provincial city of Kendari.
Both projects are on the Indonesian Ministry of Energy and Mineral Resources? Clean and Clear registry, strategically located and considered prospective for graphite based on visual outcrops and early stage exploration work.
Carbon, a Singapore domiciled private company, holds an option to purchase 75% of the total number of issued share (Option) in PT Trans Jawa Sulawesi (TJS), which has exploration rights over the Bone Bay Graphite and Laeya River Graphite Projects.
Carbon also has an off take agreement (Off take) with TJS whereby Carbon has agreed to buy all graphite powder from the Bone Bay and the Laeya River projects.
Pursuant to the HOA, Krakatoa intends to acquire the Option and Off-Take from Carbon subject to due diligence, execution of a sale, purchase and assignment of option agreement and any ASX and/or regulatory approvals.
The Bone Bay Graphite Project is held under Exploration IUP No. 188.45/101/2014 issued on March 17, 2014 for a three (3) year period by the Regent of Kolaka. It encompasses an area of 99.48 Ha, with all land being privately-owned.
The Bone Bay Graphite Project is located in Southeast Sulawesi Island, Indonesia. The project is situated within 3 km from the Regency?s administrative capital of Kolaka, 15km via a sealed provincial road from the mining city of Pomala and 153 km from the provincial capital of Kendari.
Editing by Johannes Simbolon