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.