Oxiana (OXR) said it is teaming up with PT Aneka Tambang, or Antam, to chase mining projects in Indonesia and that the sale of a 10% stake in its Martabe project to Antam for US$66.5m is planned as the first deal with its new partner. Oxiana said it has signed a memorandum of understanding with Antam to look at opportunities to form joint ventures or otherwise cooperate on exploration, development and production of precious metals or base metals or bulk commodities in Indonesia. The sale of the 10% stake in Oxiana's Martabe gold and silver project in Northern Sumatra to Antam, which is subject to the approval of both boards, would be the first transaction under the MOU. Oxiana also plans to grant Antam an option to acquire a further 10% for another US$66.5m on successful completion of the project, and a further 5% at a price to be agreed at the time when Martabe's output reaches 300,000 ounces of gold equivalent a year. OXR dropped 11 cents (4.7%) to $2.23.
OXR Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
