Minorca Resources (ME) will join with Indonesian-based PT Askatindo Karya Mineral to develop properties held by the latter in that country.
Two of the Contracts of Work are on the island of Kalimantan, west of the Busang gold discovery. Askatindo is a partner in that venture, which is being explored by Bre-X Minerals (ASE).
Minorca can earn a 90% interest in the properties, which total 145,200 hectares, and has budgeted $2 million for exploration, to begin in March.
“We will begin by compiling existing data, which will be followed by stream sediment sampling and large-scale gridding,” explains Minorca President Hermann Derbuch. “Trenching and geophysics will then outline drill targets.” To fund the work, Minorca intends to raise $1-1.5 million in a private placement of special warrants priced at $2 each. A special warrant will be exerciseable into one common share and half a common share purchase warrant at no additional cost. Each whole warrant will allow the holder to buy an additional common share at $2.50 for a period of 18 months.
In addition, Minorca will receive a short-term loan of $1 million.
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