Southern Arc and Indotan Inc. close acquisition

Vancouver-based metal exploration firm Southern Arc Minerals Inc. announced on Thursday that it has closed its acquisition of certain rights from Indotan Inc., including the right to the name Indotan Inc.

The structure of the transaction was modified to include the acquisition of two Singapore subsidiaries of Indotan.

Indotan assigned its rights to the Indotan name, granted Southern Arc power and control over all matters related to the Singapore companies, and has agreed to transfer the shares in the Singapore companies to Southern Arc once the required permits have been granted to the Singapore companies pursuant to the mining laws of Indonesia, the company said.

Since March, 2005 Southern Arc has been conducting exploration on two of its Indonesian properties, one on Lombok and one on Sumbawa, pursuant to powers of attorney granted by Indotan as holder of the related contract of work applications. The powers of attorney refer specifically to contracts of work which have been replaced with IUP mining licenses by the new mining law announced earlier this year.

By acquiring the Indotan name and the subsidiary company Southern Arc? will have direct control over the applications for the IUP?s on Lombok and Sumbawa, it said. (alex)