Scorpion joins RI project

Scorpion joins RI project

TORONTO (Dow Jones): Scorpion Minerals Inc. said it has entered into a $7 million joint venture agreement with Aurora Gold Ltd. for the Sampanahan property in Southeast Kalimantan, Indonesia.

In a news release, the company said Aurora will earn 75 percent of Scorpion's 85 percent interest in PT Scorpion Sampanahan Mineral, or a 63.75 percent stake in the property, in exchange for spending $6 million on exploration plus an additional $1 million payment.

It said Aurora has committed to spending a minimum of $1.5 million over the first 18 months, of which $1 million is budgeted for 1999. Aurora will manage the Sampanahan property and during the earn-in phase will be responsible for all ongoing costs associated with the property, it said.

Aurora Gold, Perth, is a gold mining company. Scorpion is a mineral exploration company.