Laverton enters Sumatra

Laverton enters Sumatra

PERTH (Reuters): Laverton Gold NL said yesterday it has
reached a memorandum of understanding giving Weston Investments
Ltd a 50 percent interest in its Rawas gold mine in South
Sumatra, Indonesia.

Weston is a subsidiary of Consolidated African Mines Ltd of
South Africa.

Laverton said the agreement would require approval from
shareholders and the South African Reserve Bank.

The Rawas mine currently produces about 100,000 ounces of gold
a year.

Under the terms of the agreement, Weston would pay A$13.8
million for 50 percent of the issued shares in the three
companies that hold contracts at Rawas, Laverton said.

"These funds will be provided as a debt to equity exchange
against accommodation provided to Laverton," it said.

Weston had also agreed to subscribe A$125 million to
exploration at Rawas over the next three years, Laverton said.