Sihayo update N. Sumatra gold project
Thursday, May 1 2014 - 04:44 AM WIB
1. Corporate
On February 5th 2014, the Company entered into an interim loan agreement with Provident Minerals Pte Ltd, a Shareholder of the Company, pursuant to which Provident agreed to make a loan facility of $650,000 available. The facility was extended to $1,050,00 and was fully drawn during the period.
On February 11th, Sihayo Gold Limited announced its intentions to raise up to approximately $2,001,603 (before costs) through a pro rata non-renounceable entitlements offer of one (1) fully paid ordinary share in the capital of the Company (Share) for every thirteen (13) Shares held by eligible shareholders on the record date at an issue price of $0.028 per share.
The offer closed on 21 March in accordance with an amended timetable that was announced February 18, 2014. The Entitlement Offer was fully underwritten by Provident Minerals Pte Ltd and all shortfall shares were subscribed by Provident Minerals on 29 April 2014.
The loan from Provident Minerals was repaid from the proceeds of the non-renounceable entitlements offer on 29 April 2014.
2. Sihayo Pungkut Gold Project
Sihayo Gold Limited (?the Company?) announced the outcome of a feasibility study carried out on the Sihayo Pungkut Gold Project is located in north Sumatra on 29 January 2014.
Permitting and Approvals
The Project is located within a Generation VII Contract of Work (CoW) located in Northern Sumatra, Indonesia.
The Company holds an interest in the Project through 100% ownership of Aberfoyle Pungkut Investments Pte Ltd (API). The CoW is held by PT Sorikmas Mining (Sorikmas) which is operated under a Joint Venture arrangement between API - 75% and PT Aneka Tambang ? 25% (ANTAM).
Key permits for the project to progress to the construction phase are being processed as follows:
- A Government of Indonesia Feasibility Study was submitted during February 2014 comprising technical and financial information in support of the project. We expect to participate in a formal review of this submission during May 2014, and seek to have approval mid-2014.
- AMDAL assessment will be used by the Ministry of Environment (KLH) as an instrument for supervision over the project and regional development in the area of the operation. A submission has been made in relation to the ?terms of reference? (KA-ANDAL) for this assessment. We await permission to proceed.
- Forestry or ?Borrow and Use? (Pinjam Pakai) permitting from the Forestry Department must be completed subject to receipt of final permits on the above.
An application has been made to the Government of Indonesia for an extension of the Feasibility Period provided for in the CoW.
Project Power Supply
Discussions continue with PT PLN Persero (PLN) in relation to potential power supply for the project. The company is also seeking out other potential alternatives that may substantially reduce operating cost for the project.
Metallurgical Testwork
Investigative work continues under the direction of Peter Lewis in order to identify opportunity to improve gold extraction from less oxidised ore types included within the current project.
3. Hutabargot Prospect
No activity to report
4. Surface Exploration
No activity to report.
Management continues to work with major shareholders in respect to ongoing funding requirements. The Saratoga and Provident Groups have indicated they remain supportive of the Company. (end of excerpt)