Western Mining plans to relinquish C. Sulawesi gold concession

ASX-listed Western Mining Network is planning to relinquish its 75 percent interest in PT Persada Bumi Rawas, which owns a 5,000-ha gold concession in Buol, Central Sulawesi Province.

The company said in a statement Friday that the planned relinquishment is made because of difficulties in getting renewal of the Persada tenement permit, which expired in August of last year.

?Recent correspondence received has indicated that in order to maintain tenure over the Persada tenement, the company must convert the exploration IUP (mining business license) to a production IUP,? Western Mining said in the statement.

?Based on the limited historical work completed on the Persada tenement, the board has determined that a conversion of the (exploration) IUP to production (IUP) cannot be justified,? it added.

The company said it has advised the 25 percent minority shareholders of PT Persada Bumi Rawas of its intentions. ?The parties (are) currently in dialogue regarding the company?s planned relinquishment of its interest in PT Persada Bumi Rawas and the Persada tenement,? Western Mining said.

Editing by Reiner Simanjuntak