Sumatra signs exploration deal at Tembang
PERTH (miningweekly.com) – ASX-listed Sumatra Copper & Gold has formed a strategic alliance with Indonesian gold producer Merdeka Copper Gold to extend the mine life and possibly increase production from the Tembang gold/silver operation, in Indonesia.
Merdeka will fund ongoing exploration work at Tembang, spending an initial $1.5-million over the next six months. In turn, Sumatra will issue chess depository interests (CDIs) to Merdeka at a price representing the five-trading day volume-weighted average price of Sumatra shares prior to a formal agreement on an exploration programme.
The CDIs will be issued to Merdeka in tranches based on the exploration spend during each three-month period, with the first quarter concluding on November 30.
Sumatra told shareholders on Monday that Merdeka ultimately intended to spend up to $10-million in stages at Tembang, under similar terms for each successive approved exploration programme, subject to ongoing exploration success.
“The potential to increase resources and reserves at Tembang has long been recognised, but to date the company’s focus has been on production,” said chairperson Jocelyn Waller.
“With this strategic alliance with Merdeka, the company now has a strong local partner to enable the discovery process to be expedited. It’s a significant and positive development for the company that will add value.”
During the six months to June, the Tembang mine produced 11 263 oz of gold and 80 775 oz of silver, with production affected by the lower-than-planned production volumes from the Beranai openpit, and a delay in starting stoping from the Belinau underground mine.
Comments
The
content
you are trying to access is only available to subscribers.
If you are already a subscriber, you can Login Here.
If you are not a subscriber, you can subscribe now, by selecting one of the below options.
For more information or assistance, please contact us at subscriptions@creamermedia.co.za.
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation