Paramount completes acquisition of Gunung Rosa Mine
Monday, July 30 2012 - 01:39 AM WIB
ASX-listed company Paramount Mining Corporation Limited announced the completion of the final stage of the Share Subscription Agreement between its 85 percent-owned Indonesian subsidiary PT Paramindo and PT Cikondang Kancana Prima (CKP ), to acquire an 85 percent controlling interest in the exciting Gunung Rosa gold, silver and base metal mining project in West Java .
The agreement registers Paramindo?s 85 percent equity interest, increased from 51 percent ownership in the project.
?This marks the final chapter in the evaluation due diligence of the mining component of the project. Following the successful study we are now confident we can move forward with the mine development program with the sole aim of refurbishing the mine and commencing operations as soon as possible,? Terry Holohan, the Company CEO and MD said.
?We will soon be completing our metallurgical test-work, where the payable metals are responding well in the laboratory to traditional metallurgical unit processes, and will be able to start our Engineering Studies in earnest which we plan to complete later this year. Once the metallurgical flow-sheet is finalised we will be in a position to purchase our long lead items, start the dewatering of the mine and commence operations within the underground workings.?
The company also acquired the additional 34 percent equity following conclusion of the due diligence mine evaluation program which confirmed the feasibility of re-opening the mine, the open nature of the delineated shallow, high-grade vein system as well as the future potential of discovering extensive intrusive breccia hosted mineralisation above a porphyry source for the precious and base metals.
The company has paid US$1,750,000 of the final $2,000,000 stage 3 payment to the project owners. This $1,750,000 finalizes the acquisition of shares in CKP, the holder of the Gunung Rosa mining licence (Exploitation IUP).
The remaining $250,000 has been withheld pending finalization of the environmental impact assessment, or AMDAL, which is expected to take from six to nine months to complete.
Editing by Adianto P. Simamora