Hallmark buys RI mine

Hallmark buys RI mine

PERTH (Reuter): Hallmark Gold NL said it has entered into an agreement with PT Arumbai Mangabekti (PAM) giving it the right to acquire 55 percent of the Indonesian manganese miner's issued capital for about US$1 million.

PAM is presently mining manganese on tenement KP 210 located near the town of Reo, on the north west coast of Flores, in Indonesia. Hallmark said it will appoint a manager of the Flores manganese operation following the purchase.

Hallmark said the acquisition was based upon a number of conditions including that there was sufficient manganese reserves to sustain a viable mining and processing operation.

Prior to entering into the agreement, Hallmark said it commissioned a geological consultant who visited the site and reported the potential for a reserve base of 250,000 tons of good quality manganese within five km of the coast.

Reserves to this magnitude should support a 50,000 to 60,000 tons per annum operation yielding pre-tax profits in the order of US$2 million, it said.