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.