Toronto-based junior Waseco Resources (CDN) has set its sights on the Tewah gold project in Kalimantan, Indonesia.
The company is negotiating an option agreement that will allow it to earn an undivided 20% interest in the project from Diadem Resources (ME).
To earn the interest, Waseco must fund the next US$500,000 in exploration. The work program would be managed by Diadem.
The alluvial project recovers gold from the Kahayan River, which follows a north-south fault plane cutting through and draining an epithermal gold belt that hosts several recently discovered gold deposits.
To date, more than US$3.6 million has been spent on exploration and engineering work at the Tewah property.
The project hosts a drill-indicated, minable reserve estimated at between 900,000 and 1.3 million oz. gold.
Waseco has arranged a $700,000 convertible debenture with a private company to fund the project.
The completion of the project agreement and financing transaction are subject to various approvals, including those of the Montreal Exchange and the government of Indonesia.
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