Aneka Tambang gains control of ERI Ventures

Indonesia’s state-owned mining company will acquire a controlling share position in Vancouver-based ERI Ventures (EVI-V). In return, ERI will acquire interests in 13 properties on the island of Java.

Under the deal, ERI will issue 50 million shares to Aneka Tambang at a price of 37.5 cents per share, which is believed to be equal to the properties’ total value of about $29 million.

Upon closing of the transaction, ERI will change its name to Antam Resources International and Aneka Tambang will appoint several executives to the company’s board of directors.

“Aneka Tambang has been looking for a way to get involved in North American equity markets,” ERI President Michael Harrison told The Northern Miner.

“They plan on going public in the near future, perhaps through London, and this [deal with ERI] is a way for them to spin off a gold arm before that happens.”

Trading of ERI shares on the Vancouver Stock Exchange will be halted until the deal is completed.