Iriana Resources announcement/update
Reuters Story - December 19, 1997 12:18
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(Full text of press release from Canadian Corporate News)
DECEMBER 19, 1997
Iriana Resources: Irian Jaya Joint-Venture Properties
Update
VANCOUVER, BRITISH COLUMBIA--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.
On behalf of the Board,
Peter J. Guest (D.Eng.)
President, C.E.O. and a Director
FOR FURTHER INFORMATION PLEASE CONTACT:
Iriana Resources Corporation
Rose E. Moon
V.P. Administration and Communication, Corporate Secretary
(604) 608-1633
(604)608-1633,ext.240 24 hour recorded shareholders' update
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. |
