Pelsart seeks funding, partner for S. Kalimantan gold projects

Australian junior mineral explorer Pelsart Resources NL said it was trying to secure funding for its Mirah gold project in South Kalimantan as part of requirement for re-instatement at the Australian Stock Exchange in June 2008.

The company said it was now considering funding offer from an international bank and was confident that funding will be secured by end June 2008 as Mirah is considered to be a robust project.

In addition to the funding negotiations, submissions to the indonesian Mines Department have been made to secure extensions to the Contract of Works, the company said. The submission requests a one year extension to the Construction phase, prior to moving to production.

?The level of activity in the field over the last twelve months demonstrates a commitment by the company to develop the Mirah Project and become a significant gold producer in the near future,? the company said.

The company said it was also considering options for its Timbutu gold project, also located in South Kalimantan.

?In the 2nd half of 2008, the company will be considering various options for Timburu that could include raising equity and or other sources to fund the exploration through to production stage. It would also consider holding discussions with strategic investors to form a farm-in Joint Venture to take the project through production phase,? the company said.

Timburu, which was explored by potential farm-in JV partner Placer Dome Inc of Canada between 2001 and 2003, is potentially a larger resource than Mirah, but technically more challenging

? The current primary objective for Timburu has been to ensure security of the Contract of Works until the financial and technical capacity to recommence exploration and undertake a Pre-Feasibility Study is in place. This is targeted to be substantially in place by this year end. The company will also explore the involvement of a strategic investor preferably with in-house project development capability to assist with continued exploration and the Study Phase.?

?The resumption of explored and study work for the Timburu Project will be dependent on finding a JV Partner or other sources of funding arrangements. A period of six months has been allocated to securing an arrangement to provide funding for work to start on the project in the 4th quarter of 2008.? (denny)