SP Corporation terminates contract with RI?s gold miner
Wednesday, April 25 2012 - 02:08 AM WIB
SP Corporation Limited said that its indirect wholly-owned subsidiary, PT. SP Mining & Engineering (SPME) and PT Kasongan Bumi Kencana (KBK), an Indonesian gold mine company entered into a Deed of Termination to mutually terminate a drilling contract due to various issues such as the difficult geological conditions and drastic reduction in drilling activities due to logistic constraints.
Under the terms of Termination Deed, SPME will transfer all its site employees to KBK and KBK will take over the SPME?s drilling machines at their respective net book values as at 29 February 2012.
The company said in the statement that its Termination Deed is not expected to have a material impact on the Group?s net tangible assets (NTA) and the Company?s earnings per share (EPS) for the current financial year ending 31 December 2012.
SPME and KBK signed 36 months drilling contract on 7 April 2012
It said that the audit committee of the company has reviewed, and is satisfied that the terms of the Deed of Termination are on normal commercial terms, fair and reasonable and are not prejudicial to the interests of the Company and its minority shareholders.
Editing by Adianto P. Simamora