First Dynasty sells Sembakung

Singapore-based First Dynasty Mines (FDM-T) has severed its ties to Indonesia by selling an 80% interest in the Sembakung oilfields project to Equatorial Energy.

Equatorial acquires US$15.5 million of First Dynasty’s debt. It issues Dynasty two notes for US$5 million, and pays US$250,000. Another US$750,000 is due at a later date, along with half the proceeds from the sale or disposal of some oilfield equipment.

First Dynasty is now US$6.5 million in debt, with 77% convertible into equity. The company expects this improvement will help to finance a US$40-million expansion program at three gold projects in Armenia (T.N.M., Aug. 31-Sept. 6/98).