AZCO seeks RI contract

AZCO seeks RI contract

VANCOUVER, Canada (Reuter): AZCO Mining Inc said Monday it has
been accepted by Indonesia's Ministry of Mines and Energy to
apply for a contract on Irian Jaya.

The contract was applied for under agreement with Indotan
Inc., an Indonesian firm that acted as agent on behalf of AZCO.

AZCO paid US$416,750 as security for the right to work, the
company said.

Indotan has retained a 15 percent participating interest. The
interest is in the form of a non-interest-bearing, non-recourse
loan until the completion of a favorable, bankable feasibility
study, AZCO said.

Thereafter, the parties shall bear costs pro-rata in
accordance with their participating interest, AZCO said.

The costs carried for Indotan's 15 percent participating
interest will be repaid first out of profits, in the event of
commercial production, AZCO said.