Toronto-based Indomin Resources (IRL-V) has found a partner to finance feasibility and development work on the Sundra Shelf offshore diamond project in Southeast Kalimantan, Indonesia.
Trans Hex International (THXI-C), a subsidiary of the second-largest producer of diamonds in South Africa, has agreed to spend US$5 million to earn a 30% interest in the project. The diamond explorer has also agreed to arrange all development financing.
Once the development funds are secured, Indomin’s 30% interest in the project will drop to 21%. The remaining interest will be held by Ocean Resources NL, an Australian company, and PT Indo Teras Intan of Indonesia.
Trans Hex can increase its interest to 50% two years after the first mining plant is built. Trans Hex will also have the right to market all diamond production from the project through the Trans Hex Group’s offices in Cape Town and Antwerp.
Sundra shelf contains an estimated 36 million cubic metres of diamondiferous gravels in the shallow waters off Southeast Kalimantan. The agreement is subject to completion of due diligence and approval from the Indonesian government.
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