Victory West to acquire Indonesian copper-gold project
Thursday, January 27 2011 - 02:08 AM WIB
After undertaking preliminary technical due diligence, VWM has entered into a Termsheet with the vendors of PT Noviendindo Multi Resources (NMR) and secured the right to acquire a 75% equity interest in NMR which holds the Project.
The Project is located in a known porphyry province and the geological setting is favorable for the exploration of both porphyry Cu-Au style mineralization and more discrete zones of higher grade gold mineralization.
Previous exploration at the project area include numerous Dutch exploration Adits, which were excavated early in the 1900?s exploiting copper, gold and lead from high grade quartz viens.
Lead from narrow high-grade galena veins was mined and smelted on site during the 1930?s and 1940?s.
More recent Exploration drilling in 1999 and 2000 intersected gold and copper mineralization, with the most significant being a 34.20m gold intersection commencing at 141 .80m down hole averaging 3.05 g/t Au over the intercept, with higher grade zones included within the intercept, including 4m ? 14.7g/t Au and 4.0m ? 9.1 g/t Au.
VWM and NMR are to execute a formal Memorandum of Agreement (MOA) as soon as practically possible. An exclusivity fee of US$100,000 providing a 90 day exclusivity is payable within 5 days of execution of the MOA.
Further extensive on-site technical due diligence work will be undertaken during the 90 day exclusivity period, during which legal and technical due diligence will be completed.
Upon successful completion of the due diligence, Victory West is to Reimburse the vendors of approximately $300,000 in past costs; and spend a minimum of SU$5million over 3 years to earn an 75% equity interest in NMR (the spend is inclusive of exploration, operational and administration costs). ? The Vendors are to retain a 25% ?free carried? equity interest in NMR until the completion of a feasibility study. (alex)