Strike farms out E. Kalimantan coal project

Australian mining firm Strike Resources Limited announced on Wednesday that it has signed deal to sell 70 percent of interest in a coal exploration project in Berau regency, East Kalimantan to PT Orion Indo Mining (PTOIM), which is a subsidiary of Australian investment firm Orion Equities Limited

Under the farm out deal that was signed in June, 2007, PTOIM will assume assuming Strike’s obligations under the cooperation agreement with the concession holder. Strike’s 30% interest will be free-carried until a decision to mine is made by PTOIM.

The total area of the concession in this project is 5,000 hectares, located approximately 40 kilometres south-west of Tanjungredeb (Berau) and approximately 350 kilometres north of Balikpapan .

Strike’s Indonesian unit PT. Indo Batubara had in 12 April 2007 between had acquired the right to exclusively conduct general survey activities, explore for, exploit, mine and sell coal and methane gas and other minerals in the concession area in exchange for cash payment and royalty of US$1-4 per tonne of coal mined and sold from the concession.(denny)