Prosperity accelerates Aceh gold mine development

By Demas Simbolon

Australian-listed firm Prosperity Resources Limited recently stated it has entered into a breakthrough agreement to accelerate development of its 41,000 hectare gold-copper project in Aceh Province, Indonesia.

The agreement guarantees the involvement of local partners, namely Atjeh Investment Consultancy Pte Ltd and prominent businessman Pedro Limardo, to secure and maintain open access to all project areas, and to expedite the development of potential open-pitting operations for near-term cash flow for the benefit of shareholders and the local communities.

Following the terms of the agreement, Prosperity will be allowed to shift its exploration focus to the commencement of potential open-pit mining operations. In turn, these operations will be supported by the establishment of an ore beneficiation plant, and cash flow will be generated by concentrate exports.

Such agreement, nevertheless, calls for the staged issue of shares in Prosperity and the project-level IUP holding companies, namely 10 million shares upon execution of the MOU and 2.5 million shares in the company upon AIC arranging uninterrupted access for each prospect, namely the Kuini Prospect, situated within the the company?s ATP IUP, the Mutiara Prospect, situated within the MKM IUP and the Air Pinang Prospect, situated within the AMN IUP for exploration activities and preparation for open-pit mining activities.

Editing by Audy Zandri