Rajawali acquires stake at Archipelago

PT Rajawali Corpora, an Indonesian company controlled by tycoon Peter Sondakh has controlled 30 percent shares of UK miner Archipelago Resources Plc through shares options and shares purchase, Archipelago announced on Monday.

According to Archipelago, Rajawali paid GBP 16.7 million for the transaction, including GBP10.2 million went directly to Archipelago.

Archipelago?s main asset is the Toka Tindung gold project in North Sulawesi, which development had been delayed for several years due to lack of support from local government and community.

Other significant shareholder of Archipelago is Baker Steel Funds, which controls 24.9 percent of Archipelago?s shares.

?The company is confident that with the support of Rajawali it will secure regional support for the development of Toka Tindung, secure appropriate project financing and re-commence construction. Rajawali has made clear its intention that the Project be brought into production as a matter of priority. The company understands that Rajawali will also be supportive of the company acquiring additional gold project assets in due course,? the company said.

Archipelago is a mining company listed on the AIM market of the London Stock Exchange with operations in Indonesia, Vietnam and the Philippines. (denny)