Western Mining goes ahead with Persada tenement acquisition

By Ruli Setiawan

ASX-listed mining firm Western Mining Network Limited (WMN) said on Friday it would go ahead with the plan to acquire a stake in PT Persada Bumi Rawas (PBR), which wholly owns a gold tenement in Central Sulawesi.

WMN has informed PBR that it will proceed with the transaction proposed under the Master Agreement to acquire 80 percent of the issued shares in PT. PBR which holds a 100 percent interest in IUP Exploration No. 540/307.19/Distamben dated Aug. 12, 2009 (Persada tenement)

The Indonesian government recently introduced new provisions which affect the mining sector related to foreign mining companies, the firm said.

In reference to the new regulation, WMN has renegotiated the terms of the Master Agreement to reflect:
? A reduction in ownership of the issue shares in PT. PBR from 80 to 75 percent;
? A reduction in consideration from US$500,000 to $475,000 payable in three stages:
o $100,000 upon the execution of the Master Agreement (paid);
o $275,000 upon the execution of the SSA; and
o $100,000 not later than 30 days from the execution of the SSA.

?A Share Subscription Agreement to acquire 75% of the issued shares in PT. PBR which directly holds a 100% interest in the Persada Tenement will now be finalised and executed in due course,? the firm said in statement filed with the Australian Stock Exchange.

The Persada tenement holds clean and clear status with eight year tenure expiring on Aug.12, 2016, covering an area of 5,000 ha in the Buol Regency of Central Sulawesi and is considered to be prospective for gold, the company as earlier said.

Editing by Johannes Simbolon