Iriana Resources: Indonesian Contracts of Work
Business Wire - February 02, 1998 15:46
%IRIANA-RESOURCES IR. %NEW-YORK %MINING %METALS V%BW P%BW
VANCOUVER, British Columbia--(BUSINESS WIRE)--Feb. 2, 1998-- Iriana Resources Corp. (VSE:IR.) (TSE:IR.) Dr. Peter J. Guest reports:
IRIANA RESOURCES CORPORATION ("Iriana") is pleased to announce that it has been advised by the Indonesian Department of Mines and Energy that
President Suharto has approved the signing of two seventh generation Contracts of Work ("COWs") by two Indonesian foreign investment companies ("PMA
Companies") currently being incorporated by Iriana and its joint venture partners. The two mineral resource properties subject to these COWs are located in the
province of Irian Jaya, Indonesia and cover approximately 44,860 hectares.
Particulars of the two COWs to be entered into by the PMA Companies of Iriana and its joint venture partners are as follows:
1. The Sentani COW will cover approximately 14,640 hectares in the northern Irian Jaya. Iriana will hold a 95 percent interest in the PMA Company that will enter
into the Sentani COW and a privately owned Indonesian company will hold the remaining 5 percent interest. Previous programs conducted by U.S. Steel have
outlined a resource of 43.0 million tons of ore grading 1.3 percent nickel and 0.11 percent cobalt on the Sentani property; and
2. the Ziewa COW will cover approximately 30,220 hectares in northern Irian Jaya. Iriana will hold a 95 percent in the PMA Company that will enter into the
Ziewa COW and a privately owned Indonesian company will hold the remaining 5 percent interest.
Iriana and its joint venture partners are currently making the required filings with the Indonesian Ministry of Justice and foreign investment authorities to incorporate
the Sentani and Ziewa PMA Companies. It is anticipated that these PMA Companies will be incorporated and enter into the COWs within the next two weeks.
Dr. Peter J. Guest, President and Chief Executive Officer of Iriana, today said: "We are extremely pleased with the Indonesian government's announcement that
Iriana will receive these two COWs. The COWs will give Iriana secure legal title over two highly prospective areas in Irian Jaya."
A COW is a legally binding agreement between a PMA Company and the government of Indonesia which appoints the PMA Company as the exclusive contractor
to explore for minerals in the contract area, to develop and mine any mineral deposits found in the contract area, to process, refine, store and transport all minerals
extracted from the contract area and to market and sell products extracted from the contract area both inside and outside of Indonesia. The COW system is
designed to ensure that future government regulations do not change the legal rights and obligations (including taxation and royalty requirements) of a PMA
Company.
Iriana also holds a substantial portfolio of interests in mineral properties in the Province of Irian Jaya, including a 15 percent interest in the Cendrawana COW (a
sixth generation COW covering approximately 475,548 hectares in northern Irian Jaya), a 10 percent interest in the Van Daalen COW (a sixth generation COW
covering approximately 517,700 hectares in northern Irian Jaya), a 10 percent interest in the Idenburg COW (a sixth generation COW covering approximately
1,445,000 hectares in east central Irian Jaya) and a 10 percent interest in the Senggeh COW (a sixth generation COW covering approximately 1.43 million hectares
in north eastern Irian Jaya).
On behalf of the Board Peter J. Guest, D. Eng.
President, Chief Executive Officer and director
This news release has been prepared by management of Iriana who takes full responsibility for its contents. The Toronto Stock Exchange and the Vancouver Stock
Exchange have not reviewed and do not accept any responsibility for the adequacy or accuracy of the contents of this news release.
CONTACT: Iriana Resources Corporation
Peter J. Guest, 604/608-1633
604/608-1633 ext 240, 24 hour recorded shareholders
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