First Dynasty mine in RI

First Dynasty mine in RI

NEW YORK (Reuter): First Dynasty Mines Ltd. said it signed a memorandum of understanding with PT Aneka Tambang that will enable the two companies to examine and recommend privatization strategies, initially, for the Gunung Pongkor Gold Mine and related exploration properties.

A joint study group consisting of personnel from both companies will be established to produce a proposal to maximize asset values and examine methods of potential privatization including the issuance of First Dynasty shares, the company said.

It said Friday the group will make recommendations to the boards of both companies prior to June 30.

With this agreement, Aneka Tambang said, it starts "the process of examining the privatization of our assets with the Gunung Pongkor Mine, in line with the general policy of the Government of Indonesia, our sole shareholder."

The Gunung Pongkor Mine, in West Java, was discovered and developed by Aneka Tambang. Current reserves contain over 100 metric tons of gold at an ore grade of 15 grams per ton gold and 153 grams per ton silver. The mine's capacity is currently 2.5 tons per year of gold with plans to expand to 5.0 tons a year.