STRATOS Resources continues to progress its proposed acquisition of the Yinchen Tin Project on Belitung Island. The ASX-listed company has been engaged in detailed discussions with local partners and government officials on appropriate measures to develop the project.

The Stratos Board believes that a looming supply-side deficit due to a lack of significant new projects combined with continued demand for tin in key markets such as semi-conductors should provide strong support to the tin price in coming years. This view is supported by numerous industry commentators, including the primary tin association ITRI.

To help achieve its aims, Stratos has recently completed an Aus$160,000 capital raising via a series of unsecured convertible debt instruments. Merchant Opportunity Fund continued to show support to the company by way of further investment while the directors also contributed significantly to the capital raising.

The acquisition is being carried out in conjunction with international commodities trading house, Metalcorp. The company is also seeking to acquire the Sambas Offshore Tin Project off the West Kalimantan coast.

Following the acquisition of Yinchen, Stratos intends to undertake field work. Any future work will be focused on identifying areas suitable for near-term production and cashflows, and to delineate a resource and reserve suitable for reporting under the JORC 2012 Code.

Initial exploration will focus on the most prospective alluvial tin areas. Hard rock potential in close proximity to the alluvials will also be examined.

Belitung and neighbouring island, Bangka, are in the South East Asian tin belt and represent the largest single tin export regions globally. The islands are located on the busy shipping routes of the Java Sea.

Belitung is 150km in diameter and is approximately equal distance from Singapore, Malaysia and Jakarta.

The 60% interest in the 11 Production IUPs of Yinchen will be held by a Singapore-based vehicle owned on an equal basis by Stratos and Metalcorp Group. A subsidiary of Metalcorp, Tennant Metals, has been involved in the marketing and sales of tin product from Belitung for many years and is a major participant in the Asian market for tin.

The remaining 40% is held by a local partner with long mining and processing experience on the island. Metalcorp has agreed to provide an offtake agreement for 100% of the tin producing from the 11 tenements and up to US$5 million of trade finance.

The 11 Production IUPs comprise 1200 hectares of highly prospective area predominantly on the western half of Belitung. In most cases the tenements are surrounded by or adjacent to tenements owned by Indonesia’s major tin producer PT Timah.

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