Southern Arc finalizes sale of Taliwang project
Saturday, March 1 2014 - 01:50 AM WIB
Canadian junior mining firm Southern Arc Minerals announced Friday that the company has finalized an agreement for the sale of its interest in the Taliwang project.
Pursuant to the terms of the agreement, Southern Arc's wholly-owned subsidiary Indotan Sumbawa Pte. Ltd., which holds a 90% share in the Indonesian company that owns the Taliwang project (remaining 10% held by the West Sumbawa Regency Government), will be sold to a prominent Indonesian businessman in consideration for the payment of US$1,600,000 and the granting of a 5% net smelter royalty to Southern Arc.
The purchaser has the option to buy back 3% of the net smelter royalty by paying Southern Arc $3,000,000. The purchaser has made two payments to Southern Arc totaling $400,000 and will pay Southern Arc an additional $1,200,000 in four consecutive weekly installments of $300,000.
"We are very pleased to have entered into this agreement in today's challenging market conditions, particularly as the net smelter royalty and buy back terms still allow Southern Arc to participate in the development and future success of the Taliwang property," said John Proust, Chairman & Chief Executive Officer of Southern Arc.
"Sale of this non-core property will further bolster Southern Arc's treasury, giving us the financial flexibility to invest in new high-quality projects that will add value for Southern Arc shareholders,? he added.
Editing by Johannes Simbolon