Prosperity terminates of Aceh Project MoU
Friday, October 12 2012 - 12:59 AM WIB
Prosperity Resources Limited said that it has elected not to proceed with the Memorandum of Understanding (MoU) in respect of development of the company?s Aceh Project on the terms disclosed on 20 June 2012 .
As a result, the MoU has been terminated by mutual agreement, without penalty.
The Company is currently negotiating an alternate structure to achieve the stated objectives, and will notify the market in due course.
Prosperity Resources is a Western Australian based gold-copper explorer listed on the Australian Securities Exchange.
The company's strategic focus is on Indonesia, with their flagship Aceh Gold-Copper Project. Prosperity also has significant land holdings in the historic mining region of Tennant Creek in the Northern Territory.
Meanwhile, Prosperity Resources said that the company has reached agreement with its joint-venture partners to acquire an additional 10 percent of the equity in three exploration licence (IUP) holding companies in the company?s gold-copper project in Aceh Province.
The three companies are PT Bintang Agung Mining, PT Mulia Kencana Makmur and PT Multi Mineral Utama.
The agreement brings the company?s Indonesian subsidiary?s ownership in these assets to 90%, with the balance remaining with the joint-venture partners.
It said that the company will issue 11,000,000 fully paid ordinary shares to the joint-venture partners and contract intermediaries.
Editing by Adianto P. Simamora