Southern Arc sells East Elang property in Sumbawa

By Romel S. Gurky

Canadian firm Southern Arc Minerals Inc. announced on Thursday that the company has entered into a Sale and Purchase Agreement to sell its share of the East Elang Property, Southwest Sumbawa Island to an Indonesian individual.

Southern Arc has agreed to sell and transfer its shares in East Elang in exchange for US$20,000 and a 3 percent net smelter returns royalty (NSR) on all future sales or other disposition of all minerals production from the property.

"Southern Arc has been unable to advance the East Elang Property as the result of repeated extensions to an Indonesian forestry moratorium," said John Proust, Chairman and Chief Executive Officer of Southern Arc.

"We have sold the East Elang Property to an Indonesian individual with the intention and capacity to advance the project once the moratorium is lifted. Southern Arc's 3 percent NSR will allow the Company and its shareholders to benefit should East Elang advance to production."

Editing by Johannes Simbolon