Freeport has option to acquire Iriana Mutiara<\/p>\n
NEW ORLEANS (Reuters): Freeport-McMoRan Copper & Gold Inc said
\nFriday it has a letter of intent with the owners of PT Iriana
\nMutiara Mining providing Freeport with an option to acquire a 90-
\npercent ownership interest in the Indonesian company, which holds
\nexploration rights to an area totaling 485,548 hectares (some 1.2
\nmillion acres) in central Irian Jaya, Indonesia.<\/p>\n
\"A substantial portion of (this) area is contiguous to Block
\nII of our P.T. Irja Eastern Minerals (contract) area and on-trend
\nwith a number of exploration targets we have identified,\" Chief
\nExecutive James Moffett said.<\/p>\n
\"Drilling on two prospects in Block II, the Haiura and
\nKatehawa prospects, has shown encouraging results. In addition,
\nPT-IMM has discovered a nickel laterite resource which, based on
\npreliminary results from early stage exploration, appears to have
\ncommercial potential.<\/p>\n
\"This acreage enhances the prospect of our making a
\nsignificant mineral discovery in Irian Jaya outside our P.T.
\nFreeport Indonesia Block A\" area, he said.<\/p>\n
P.T. Iriana Mutiara is owned by Battle Mountain Gold Co,
\nIriana Resources Corp (Iriana), a Canadian resources company, and
\nP.T. Mutiara Iriana Minerals, an Indonesian company.<\/p>\n
The proposed transaction is subject to execution of a
\ndefinitive restructuring agreement, Freeport said.<\/p>\n
As proposed, it said, this agreement calls for Freeport to
\nbecome the operator of the contract area and spend a minimum of
\n$500,000 on exploration in the area by December 31, 1998.<\/p>\n
After fulfilling the spending requirement and electing to
\ncontinue participation beyond June 30, 1999, Freeport would
\nacquire the 90-percent interest and would fund all exploration
\ncosts up to and including a feasibility study.<\/p>\n
The remaining 10-percent interest would continue to be held by
\nIriana Resources. If a project in the area is determined to be
\nfeasible, Freeport would be responsible for arranging 100 percent
\nof the needed construction financing.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/freeport-has-option-to-acquire-iriana-mutiara-1447893297",
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"sponsor": "Okusi Associates",
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