Iriana Resources: Irian Jaya Joint-Venture Properties Update
Business Wire - December 19, 1997 12:42
%IRIANA-RESOURCES IR. %NEW-YORK %MINING %METALS V%BW P%BW
VANCOUVER, British Columbia--(BUSINESS WIRE)--Dec. 19, 1997-- Iriana Resources Corporation (TSE: IR) (VSE: IR) -- Dr. Peter J. Guest reports:
Iriana Resources Corporation ("Iriana") is pleased to announce that it has entered into a Letter of Intent ("LOI") with Freeport McMoRan Copper & Gold Inc.
("FCX") regarding the possible acquisition by FCX of a controlling interest currently owned by Battle Mountain (Irian Jaya) Ltd. ("Battle Mountain"), Iriana, and
others in the Indonesian company that holds the Iriana Contract of Work ("Iriana COW"). Under the terms of the LOI, FCX has an option to acquire a 90 percent
interest, with Iriana retaining a 10 percent free carried interest through to completion of a Bankable Feasibility Study ("BFS") for the project, which covers
approximately 485,548 hectares in western Irian Jaya. A definitive Restructuring Agreement is planned under which FCX will become the operator under the Iriana
COW and will fund a minimum of US$500,000 in exploration costs by December 31, 1998. If FCX elects to continue its participation beyond June 30th, 1999,
FCX will acquire a 90 percent ownership interest and will then be obligated to fund all exploration costs through to, and including, a BFS and, if the project is
determined to be feasible, arrange mine construction financing.
Iriana has further reviewed its mineral property interests located in Irian Jaya, Indonesia and has notified Aurora Gold Ltd. of its intent to not proceed with the
Kwatisore Contract of Work and is in the process of notifying the Indonesian Department of Mines and Energy ("DOME") that Iriana is relinquishing all of its rights
and obligations for this project. The relinquishment decision was based on exploration results to date that indicated a lack of economic potential for the 325,400
hectares project area.
Further to an August, 1997 News Release, Iriana has determined to notify the DOME of its intent to relinquish all of its rights and obligations on the Ransiki
project, held previously in a joint venture with a subsidiary of Barrick Gold Corporation ("Barrick"). In August, Barrick advised Iriana, that after having spent
US$200,000 on the project, the geological results realized did not merit further expenditures on this 1.0 million-hectare block.
Iriana continues to be a well-funded junior mining company with substantial mineral property interests and strong S.E. Asian based major shareholders.
The Toronto Stock Exchange and the Vancouver Stock Exchange have
not reviewed and do not accept responsibility for the adequacy
or accuracy of this news release.
CONTACT: Iriana Resources Corporation
Rose E. Moon, 604/608-1633
604/608-1633, ext. 240 (24-hour recorded
shareholders' update) |
