Metals Exploration acquires E. Indonesia nickel prospects

London Stock Exchange-listed junior mining firm Metals Exploration PLC announced Tuesday it has, through an Indonesian subsidiary, PT Cupati, signed that it has entered into an agreement with PT Batan Pelei Mining (BPM) to acquire rights to various properties on Waigeo Island in West Papua for US$100,000.

The company said the prospects had potential for major nickel laterite resource, as historical drilling had identified ?non-JORC compliant? resources of 35 mt @ 1.5% Ni, 0.13% Co, 37% Fe.

In the event that commercial operations commence, the Company has agreed to pay BPM a royalty equivalent to 10% of gross revenues for the first 5 years of operations, rising to 17.5% thereafter. The agreement between BPM and Metals Exploration is exclusive and open ended. (denny)