Meekatharra enters RI

Meekatharra enters RI

MELBOURNE (Reuters): Meekatharra Minerals Ltd said on Tuesday its subsidiary MM Gold Pty Ltd and joint venture partner Teck Corp signed option agreements to acquire a majority interest in two contracts of work in Indonesia's "Trans Borneo Gold Belt."

The agreements were reached with South Pacific Resources Corp, which holds 85 percent of the Masao and 90 percent of the Mirih gold exploration projects, located in Kalimantan.

Meekathara said the project sites are regarded as highly prospective for epithermal gold and porphyry copper and gold deposits.

The agreements cover sixth generation contracts of work, which are government licenses to explore in Indonesia.

The agreements allow Meekatharra and Teck to acquire 51 percent of each of South Pacific's offshore companies which control the projects, by funding US$3 million for exploration on each project.

The interests can be increased to 60 percent through expenditure of a further US$1.5 million on each project, Meekatharra said.