Aurora gold on lookout for RI gold buys
Aurora gold on lookout for RI gold buys
PERTH (Reuter): Perth-based Indonesian gold miner and explorer
Aurora Gold Ltd said on Wednesday that it disagreed with recent
criticism of investment opportunities in the Southeast Asian
country and is on the lookout to buy an operation that has annual
production of about 100,000 ounces.
The company's Mt Muro mine and the Busang gold fraud are both
located in East Kalimantan province.
Aurora told shareholders at the annual meeting that it plans
to have annual gold output of 400,000 ounces by the year 2000 and
at the moment it has 230,000 ounces of production from Mt Muro
and expects to achieve 85,000 ounces from the Toka Tindung
"Negative media statements relating to the business and mining
investment environment in Indonesia are contrary to Aurora's
experience," Aurora said.
"Whilst these negative sentiments may cause some explorers to
withdraw from Indonesia, they may well provide opportunities for
Aurora to build upon its Indonesian relationships, and consider
additional investment in vacated tenements," it said.
"In recognizing the exploration and development lead times to
achieve such an increase, acquisitions of appropriate sized
projects are being considered," the company said.
"To achieve this end a team of professionals has been
established within Aurora to review acquisition opportunities."
Asset sales
Gold miner Sons of Gwalia Ltd said on Wednesday it plans to
sell some of its assets and restructure its debt finance
following the swag of acquisitions the company made last year.
Sons of Gwalia said it plans to sell all of its interests in
the Awak Mas gold project in Indonesia to Lone Star Exploration
NL for A$15 million, the issue to its associate Gasgoyne Gold
Mines Nl of 10 million Lone Star shares and a royalty of US$10
per ounce on all gold produced from the Awak Mas project.
The project is on the Indonesian island of Sulawesi.
It said this agreement is subject to the Indonesian government
granting Lone Star and Gasgoyne an extension to the existing
contract of work until October 2000
Sons of Gwalia said it has also agreed to sell to Coeur
d'Alene Mines Corp, a 13.8 percent interest in Gasgoyne for
A$22.7 million. The two companies were locked in a bitter
takeover battle for Gasgoyne last year.
It said this transaction is subject to approval by the Foreign
Investment Review Board. Gasgoyne would now hold a 70 percent
interest in the Yilgam Star gold mine in Western Australia, Sons
of Gwalia said.
The Perth-based miner said it had also entered into an in
principle agreement with Citibank, a unit of Citicorp, to
consolidate and refinance its current debt facilities.
Sons of Gwalia said under the terms of the new agreement, the
company would enter into a six-year debt facility with Citibank
for $120 million with interest only being paid by the company
until 31 December 2000.