OKAS Acquires Indotan Lombok
gold

OKAS Acquires Indotan Lombok

Ancora Indonesia Resources Tbk (OKAS) acquired 100 percent shares of Indotan Lombok Pte Ltd from Southern Arc Minerals Inc for USD 2 million. Indotan Lombok is the owner with 90 percent shares of Indotan Lombok Barat Bangkit (ILBB) which owns Gold and Copper Mining Business License in Lombok, West Nusa Tenggara.

This acquisition is one of the company’s strategy to diversify the business and increase the company’s revenue in the future.

Southern Arc is a Canadian mining company listed on the Toronto Stock Exchange. John Proust, Chairman & CEO of Southern Arc, said the mine is located on an area of 13 km x 7 km which has gold and copper reserves.

Under stock sale and purchase agreement, OKAS will pay USD 2 million to Southern Arc and give a royalty return of three percent from net production of smelter in ILBB mine. “Ancora can buy back this royalty anytime with a value of USD 2 million,” said Proust.

Southern Arc will also provide USD 1 million loan to OKAS to cover the cost of drilling consultations and geological tests for a report on mineral reserves in the mine. The loan will be repaid within one year with LIBOR plus three percent interest.

The mine also grants two percent net royalties to third parties. This royalty can be purchased by OKAS worth USD 1 million.

The completion of this acquisition transaction depends on a number of agreed terms including due diligence to be completed within 45 days, royalty agreement, and loan finalization with Southern Arc within 60 days. (*)

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