Pilbara Minerals intends to acquire a 55% interest in an Indonesian company that has the rights to a prospective gold project.
PT Maleo Mining holds the titles to the Bomong gold project leases in the North Sulawesi volcanic arc.1
The project was previously mined by the Dutch more than 100 years ago and recent artisanal mining has located possible extensions to the high-grade epithermal gold veins.
Previous sampling has apparently indicated average grades of about 7 grams/tonne gold, however, the company will be verifying the results during the option period.
The proposed acquisition will see the company add a new focus area away from its namesake in Western Australia. It has four projects in the West Pilbara and also has an option over the Seluma iron sands project in Indonesia.
Pilbara has entered into an option agreement with PT Maleo and will pay Aus$350,000 for a six-month option to acquire the stake in the private company. If it chooses to proceed with the purchase, Pilbara will issue ordinary shares to the maximum value of $300,000.
Other Asian investors, including local Indonesian investors, hold the remaining stake in PT Maleo and are free-carried until a decision to mine is made.
Pilbara says that a small nearby processing plant might treat early high-grade ore while other targets are assessed.
www.pilbaraminerals.com.au

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