Mill City Signs Letter of Intent to Acquire Significant Oil and Gas Interest
January 20 2014 - 10:48AM
Marketwired
Mill City Signs Letter of Intent to Acquire Significant Oil and Gas
Interest
CALGARY, ALBERTA--(Marketwired - Jan 20, 2014) - MILL CITY GOLD
CORP. ("Mill City" and/or the "Company")
(TSX-VENTURE:MC)(OTCBB:MCYGF)(FRANKFURT:NJ6) is pleased to announce
the signing of a Letter of Intent ("LOI") to purchase up to a 60%
interest in the North East Tanjung Block, an onshore Indonesian gas
concession and Production Sharing Contract with a 30 year contract
term including initial 6 year exploration period, from PT Anugerah
Trimata Kaltim Energi ("PTATKE"), an Indonesian limited liability
company that holds a 100% working interest in the project.
"This is an incredible opportunity for Mill City and our
shareholders to acquire a majority stake in a high potential gas
field, located in a friendly jurisdiction with a shortage of
natural gas production," stated James R. Brown, Mill City's
Chairman, President and CEO.
Project Description
The North East Tanjung Block project is located at Kutai Barat
regency, East Kalimantan Province, which is approximately 180 km to
the north-west of Balikpapan City. The project area covers
initially 11,191.8 square kilometres and reduced into approximately
5,453.27 square kilometres within the onshore Kutai Basin.
Geologically, the project area is situated in Western Kutai Basin,
known as the Upper Kutai Basin, which is one of the most prolific
petroleum basins within Indonesia. Moreover, from a previous study
on adjacent ground, the gas potential has been proven in the
Mendung Well, within the onshore West Kutai.
There are three target "pay zone" formations on the project.
Previous work conducted on the project by the Indonesian government
indicates that a gas resource is present. The Company intends to
complete a NI 51-101 report in due course to verify this
resource.
Scheduled Work Program
To confirm the potential of the North East Tanjung Block, the
joint venture partners plan to conduct exploration activities
including drilling 2 exploration wells and 2 delineation wells, and
to conduct a 2D seismic survey over a 2 km x 300 km area by the end
of 2016. The estimated total cost to complete the exploration
program is approximately US$31.52 million.
Earn-in Schedule
To earn up to a 60% interest in the North East Tanjung Block,
Mill City agrees to provide up to US$32 million thru staged
financings over three years to provide the working capital to
conduct the work program described above.
Year 1 - US$10 million for an initial 20% Interest in the North
East Tanjung Block and issuing to PTATKE that number of shares
equal to 49% of Mill City's issued and outstanding share capital
immediately prior to TSX Venture Exchange (the "Exchange")
Acceptance, which shares shall be subject to such resale
restrictions and hold periods as may be imposed under applicable
securities laws and the policies of the Exchange.
Year 2 - US$11 million for an additional 20% Interest in the
North East Tanjung Block and issuing to PTATKE that number of
shares equal to 49% of Mill City's issued and outstanding share
capital (less the total number of shares issued in Year 1).
Year 3 - US$11 million for an additional 20% Interest in the
North East Tanjung Block and issuing to PTATKE that number of
shares equal to 49% of Mill City's issued and outstanding share
capital (less the total number of shares issued in Year 1 and Year
2).
The signed LOI allows for up to ninety (90) days from the
signing to complete due diligence and to arrange the first year
tranche of required capital to finance the work program.
About Mill City Gold Corp.
Mill City Gold Corp. is a TSX Venture listed exploration company
that is focused on identifying and acquiring advanced precious
metals, uranium and hydrocarbon projects in the most favorable
jurisdictions around the world. For further information please
visit the Company's website at www.millcitygold.com.
About PT Anugerah Trimata Kaltim Energi
PT Anugerah Trimata Kaltim Energi is an Indonesian limited
liability company engaged in oil and gas exploration and production
business. PTATKE was established in 2012, exclusively for the
purpose of the exploration and production activities of the North
East Tanjung PSC. Currently, PTATKE holds a 100% working interest
in the North East Tanjung PSC Block.
ON BEHALF OF THE BOARD OF DIRECTORS
James R. Brown, Chairman, President & CEO
The TSX Venture Exchange does not accept responsibility for
the adequacy or accuracy of this release.
Mill City Gold Corp.James R. BrownChairman, President &
CEO403-640-0110www.millcitygold.com
Jervois Mining (TSXV:MC)
Historical Stock Chart
From Nov 2024 to Dec 2024
Jervois Mining (TSXV:MC)
Historical Stock Chart
From Dec 2023 to Dec 2024
