Prosperity completes funds placement to acquire Indonesian metal projects

Perth-based firm Prosperity Resources said on Tuesday that it has completed a placement to overseas investors to raise A$l,000,000 funds to further the company?s plans to acquire quality metals projects in Indonesia.

The placement was made to the Tai Xi group, a strategic Chinese Investor, and PT Dana Mitra Utama (DMU), the company?s joint venture partner company in Indonesia, it said in statement.

The company did not give further details.

In October 2008, the company has executed a co-operation agreement with DMU to apply for Mining Licenses (KP), acquire KP companies, develop, exploit, transport and sell mineral deposits in the Indonesian archipelago.

DMU is controlled by businessman Jopie Widjaja.

Under the deal, DMU will provide Prosperity with proposals and an assessment of KP areas and companies within Indonesia that may yield sufficient mineral resources that Prosperity may be interested in pursuing and/or acquiring.

Both companies have established a local joint venture company in which Prosperity will hold 90 percent stake. (denny)