Business
Sale of Interest in Indonesia
Sale of Interest in Indonesia.
About this update from Ecr Minerals Plc
[{"type":"text","content":"\n RNS Number : 5960W Mercator Gold PLC 30 July 2009 \n \n\n\n\n \n\nMERCATOR GOLD plc('Mercator Gold', 'Mercator' or 'the Company')\n\n\nLondon: 30 July 2009\n\nSale of Interest in Indonesian Gold Project\n\n\n\n\nMercator is pleased to announce it has agreed to sell its interest in the Area 81/Derewo River gold project for 50 million shares in a company to be named Paniai Gold Limited and to be listed on the National Stock Exchange (NSX) of Australia. \n\n\n\n\n\nPaniai Gold shortly intends to raise A$0.5 million in pre-IPO funding ahead of an IPO targeted to raise in excess of A$2 million.\n\n\n\n\n\nPaniai Gold will carry out alluvial gold mining operations on a granted mining permit at Area 81/Derewo River in joint venture with a local company, with gold production expected to commence before the end of 2009.\n\n\n\n\n\nThe transaction will allow Mercator to realise tangible value from its involvement in the Area 81/Derewo River gold project.\n\n\n\nOn the completion of the I.P.O Mercator's shareholding will represent approximately 17% of Paniai Gold Ltd which is expected to have a market capitalization of approximately $Aus 10 million following the proposed listing. The fundraising is being sponsored on a best-endeavours basis by Australian stockbrokers BGF Equities Pty Ltd. \n\nPaniai Gold is the holder of a 50% interest in a joint venture ('the JV') over the Area 81/Derewo River project with a local company called PT Madinah Qurrata'ain. At present, the JV has one granted 40 ha mining permit, plus applications pending for another 1,800 ha of mining permits and approximately 170,000 ha of exploration permits. An environmental impact study relating to the applications has recently been completed and lodged with the Provincial authorities in Papua, which constitutes a key step towards the permits being granted. \n\nThe JV will initially mine substantial bodies of gold bearing alluvial gravels located within its granted mining pe...