(MENAFN - ProactiveInvestors - Australia) Arc Exploration (ASX: ARX) will be joined by one of the world's most diversified mining companies, Anglo American (LON: AAL), in Indonesia.
Anglo American Indonesia has entered into a joint venture with Arc to earn up to 75% interest in its Trenggalek Project in East Java, which is prospective for porphyry copper-gold mineralisation at depth beneath extensive areas of surface alteration.
Anglo has already conducted extensive due diligence over several months including completion of high resolution airborne magnetic and radiometric surveys over the entire 300 square kilometre exploration IUP tenement.
Due diligence also included follow up geochemical sampling, geological mapping and alteration studies in priority areas.
This work has already yielded a number promising targets.
Arc had over 4 million in cash at the end of September 2012.
- Anglo American has the right to earn a 51% interest by sole funding US 10 million before 1 October 2016 of which not less than US 2.5 million shall be spent before 30 June 2014 and a minimum spend of US 1.6 million is required before 30 November 2013 before Anglo American can withdraw from the project.
- After spending US 10 million Anglo American can move from 51% to 75% by sole funding an additional US 10 million.
- On reaching 75%, Anglo American will free carry ARX for its remaining 20% through completion of a Pre-Feasibility Study.
- The Joint Venture is deemed to have commenced on 1 November 2012 and formal legal documentation is now in the process of being finalised.