Placer Dome and Pelsart form JV on S.Kalimantan gold projects
Friday, October 5 2001 - 12:25 AM WIB
Australian listed mineral explorer Pelsart Resources NL and a wholly owned subsidiary of Placer Dome Inc of Canada signed a farm-in and joint venture agreement on September 19, 2001 on two gold projects in South Kalimantan.
The proposed transaction involves the Meratus and Kusan Contracts of Work (CoW) areas, which are respectively held by Pelsart?s 85 percent subsidiaries, PT Meratus Sumber Mas and PT Pelsart Tambang Kencana, Pelsart announced Thursday.
Pelsart said Placer Dome could earn up to 60 percent of equity interest in the projects by funding all exploration works in the CoW areas until a sizeable, economically robust mineral gold deposit could be brought into commercial production
Pelsart will retain a 20-percent interest with existing minority shareholders holding the balance.
The farm-in will occur in three stages of approximately 6 months, 2 years and 3 years, said Pelsart.
?Placer Dome will need to make elections, and there are other conditions to be satisfied, to proceed from stage to stage,? said R. Tan, Pelsart?s company secretary in a statement. (alex)