Meekatharra buys RI project

Meekatharra buys RI project

SYDNEY (Reuter): Meekatharra Minerals Ltd. said it has agreed
to buy out the 52 percent stake held by its partner, Aurora Gold
Ltd., in Indonesian gold mining firm Natarang Offshore Pty. Ltd.

Natarang owns 85 percent of a mining contract covering 810
square kilometers in South Sumatra. The contract includes the Way
Linggo North Vein gold and silver project.

"The consideration for the acquisition is to be a net smelter
royalty of 1.85 percent to a maximum level of US$3.5 million,"
Meekatharra said in a statement.

"An advance of US$250,000 against net smelter royalty payments
will be made initially and a further advance of US$250,000 will
be made on completion of a bankable feasibility on the Way Linggo
North Vein," Meekatharra said.

The feasibility study is expected to be finished by December
this year. In November Meekatharra said that a pre-feasibility
study of the project found there was a drilled resource of
156,700 ounces of gold and 2.03 million ounces of silver.

Initial production of 40,000 to 60,000 ounces of gold was
targeted, it said then.