Southern Arc to acquire subsidiary of Indotan Inc.

Vancouver-based mineral exploration from Southern Arc Minerals Inc. announced Thursday that, subject to regulatory acceptance, it has agreed to acquire a wholly owned subsidiary of Indotan Inc and the name Indotan Inc.

This agreement was prompted by the introduction of the new mining law in Indonesia, enacted earlier this year, it 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 in Indonesia, it said. (alex)