Austindo to take control of HMH Gold

Austindo to take control of HMH Gold

SYDNEY (Reuter): HMH Gold Mining Corp Ltd said yesterday
Indonesia's PT Austindo Mining Corp (AMC) would move to a
controlling interest in the gold producer and explorer after
first taking a strategic stake.

HMH, which is also listed on the Vancouver Stock Exchange and
whose major shareholder is Hongkong Macau (Holdings) Ltd, said
the first step in AMC gaining 41.35 percent of its shares would
be the immediate acquisition of 13.75 million ordinary shares at
A$0.20 a share.

A year later AMC, a company wholly owned by the Tahija family,
would take another 11.25 million shares at the same price per
share.

AMC would also be awarded an option to acquire a further 37.5
million shares at A$0.25 each at any time up to the third
anniversary of the first allotment.

The HMH Gold board would also be reconstituted and the
proposed deal would be put to an extraordinary general meeting
within 60 days, HMH said.

"HMH Gold welcomes the participation of AMC in the future
development of its gold activities in Indonesia and looks forward
to the positive contribution that AMC's experience and background
will bring at both board and management levels," the company
said.

HMH, which has production and exploration acreage in West
Kalimantan, said in April it and other explorers in Indonesia had
been hurt by the controversy which surrounded the faked Busang
gold "discovery" of Bre-X Minerals Ltd.