First Dynasty moves into Irian Jaya

With a new acquisition, First Dynasty Mines (TSE) has moved to an enviable address: next door to the renowned Grasberg and Ertsberg copper-gold deposits in the Indonesian region of Irian Jaya.

The Minika project covers 510 sq. km of the highest part of the island of New Guinea and abuts against New York-listed Freeport McMoRan Copper & Gold’s Block A concession.

To acquire the property, First Dynasty will exchange 909,000 shares of its common stock (about 2% of its outstanding shares) for 90% of the outstanding shares of Setdco Mining, whose principal asset is a 90% interest in the PT Montague Minika contract-of-work area. Upon completion of the deal (expected by year-end), First Dynasty will assume control of Setdco. The company plans to spend US$6 million on exploration, including airborne geophysics, mapping and sampling, as well as drilling.