Australian copper and gold producer Oxiana Resources (OXFLY-O, OXR-A) has signed an agreement with Vancouver junior Kalimantan Gold (KLG-V) to earn an interest in Kalimantann’s KSK property in Indonesia.
Under the agreement Oxiana commits to funding US$2.5 million in exploration work on KSK within 18 months. At that point Oxiana can either withdraw or commit to providing a pre-feasibility study by the 42nd month of the agreement, to earn a 30% interest (40% of Kalimantan’s 75% stake in the project). That can be increased to a 50% stake by providing a final feasibility study within five years of the start of the agreement.
Kalimantan Gold keeps a right to buy back any interest Oxiana has earned if Oxiana drops its option. The junior would have to pay 50% of Oxiana’s expenditures on feasibility work. Oxiana also undertakes to arrange financing for Kalimantan’s share of project funding once there is a final feasibility study.
The 941-sq.-km KSK property is a Contract of Work area in which a local partner owns a 25% interest. Kalimantan Gold has outlined three major prospects, Baroi, Beruang Kanan, and Mansur, through several drill campaigns totalling 12,300 metres. So far there has been no resource calculated.
Be the first to comment on "Oxiana to take on Kalimantan projects"