ATAPA AND PT ANEKA TAMBANG SIGN FORMAL JOINT
VENTURE AGREEMENTS ON THE CIKOTOK CIKIDANG
SUPER KP
1997-05-12
ETOBICOKE, ONTARIO
Atapa Minerals Limited ("Atapa") announces the signing of two joint venture agreements with PT. Aneka Tambang ("Antam"), the state mining company owned by the Government of Indonesia, and PT Oceanic Union Marine ("Oceanic"), an Indonesian company controlled by Mr. Edwin Indradewa, an Indonesian businessman.
These agreements are particularly significant since they are among the first formal joint venture agreements to have been finalized with Antam which relate to prospective gold properties on the island of Java, Indonesia.
The agreements confirm exclusive rights to explore, evaluate, develop and, if feasible, conduct mining operations in the 101,400 hectare area in South West Java which is covered by the Cikotok/Cikidang Super KP. The properties to which the KP relates are located approximately 15 kilometres from Antam's Gunung Pongkor Mine which has announced reserves of 3.3 million ounces of gold and 30.9 million ounces of silver. The Cikidang and Cikotok properties are well situated geologically and have good road accessibility and infrastructure.
Antam has previously identified a quartz vein deposit of approximately 473,000 tonnes with an average grade of 10 grams of gold per tonne and 87.7 grams of silver per tonne on the Cikidang property.
Atapa is required to fund 100% of exploration and development expenses within the Super KP area until commencement of commercial production.
Atapa and Oceanic will participate jointly in the ventures with Antam on a 90% Atapa, 10% Oceanic basis. Atapa may, prior to December 31, 1999, acquire one half of Oceanic's 10% interest by paying US$ 750,000 and by issuing Atapa shares to Oceanic valued at the same amount.
Cikidang Joint Venture
Atapa and Oceanic have the right to earn a 70% interest in the Cikidang property. This interest can be earned by:
a) conducting exploration which proves the existence of additional ore reserves and by the preparation of a bankable feasibility study which supports mining operations; or,
b) by the payment of an entry price to Antam.
The increase in ore reserves and the entry price are based on a prescribed formula.
Antam retains a 30% carried interest in the Cikidang Joint Venture and has the option at the feasibility stage of acquiring an additional 10% participating interest by reimbursing Atapa for 10% of the costs incurred to the date of exercise of the option.
As previously announced Atapa commenced a diamond drilling program on the Cikidang property in April, 1997.
Cikotok Joint Venture
Atapa and Oceanic have the right to earn a 75% interest in the Cikotok Joint Venture.
Antam retains a 25% carried interest and at the feasibility stage has the option to acquire an additional 15% participating interest by reimbursing Atapa for 15% of the costs incurred to the date of exercise of the option.
Atapa operates in Indonesia through PT. Atapa Mineral indo and a recently established, wholly owned mining services company, PT. Atapa Mining Services.
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For further information, please contact Scott Keevil or Janet Kosowan in Canada at:
Tel: 416-620-4365, or toll free 1-800-392-8430 (Canada and USA):
Facsimile: 416-620-5209,E-mail: Gold@Atapa.com: URL: www.Atapa.com
or in Jakarta at:
Tel: 62-21-780-3291 Facsimile 62-21-780-1058
Atapa shares trade on the Canadian Dealing Network (CDN) in
Toronto as ATAP. |
