Aurora to review sales plan

Sat, 04 Aug 2001 | Source: DJ

CANBERRA (Dow Jones): Australia-based Aurora Gold Ltd. will review its options for divesting its Toka Tindung gold mine in North Sulawesi, Indonesia, following a decision by Austindo Resources Corp. against taking over the operation.

Aurora put the mine on care and maintenance in September 1999 when, in a major period of unrest in Indonesia, Toka Tindung's satellite Talawaan operation was overrun by thousands of illegal miners.

Aurora announced May 21 that Austindo signed a preliminary agreement to buy the mine.

But late Thursday the companies said Austindo has withdrawn from that agreement.

Andrew Cooke, Austindo's company secretary, said it withdrew because of the ongoing problems associated with illegal miners on the site.

"We felt they (illegals) presented a problem that even our expertise and presence there mightn't be able to deal with on a realistic basis," he told Dow Jones Newswires.

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