VANCOUVER, Sept. 5, 2017 /CNW/ - Southern Arc
Minerals Inc. (TSX-V: SA) ("Southern Arc" or the
"Company") is pleased to announce that it has entered into a
binding term sheet with PT Ancora Indonesia Resources, Tbk ("PT
AIR"), an Indonesian public company listed on the Jakarta Stock
Exchange, pursuant to which PT AIR will acquire all of the issued
and outstanding shares of Southern Arc's Singaporean subsidiary,
Indotan Lombok Pte Ltd. Indotan Lombok Pte Ltd owns 90% of
Indonesian company PT Indotan Lombok Barat Bangkit which holds an
IUP on the West Lombok Property (the "Property") located on
Lombok Island in Indonesia.
The West Lombok Property covers a 13-km long by 7-km wide
northwest trending structural corridor of mineralization and
alteration hosting three main prospects: the Pelangan epithermal
gold prospect, the Mencanggah epithermal/porphyry district, and the
Selodong porphyry intrusive complex.
In consideration for the acquisition, PT AIR will pay Southern
Arc US$2 million and will grant the
Company a 3% net smelter return royalty on any production from the
Property. PT AIR may buy back this royalty at any time for
US$2 million.
Southern Arc will provide a loan of US$1
million to PT AIR which will be used specifically to cover
costs of drilling and geological consultants to work towards the
preparation of a JORC compliant ore reserve report. The loan
will be repayable within one year and will accrue interest at the
LIBOR rate plus 3%. The property is also subject to an existing 2%
net smelter return royalty in favour of a third party which may be
purchased for US$1 million.
The completion of the acquisition is subject to a number of
conditions precedent including due diligence (to be completed in 45
days), assignment of the existing royalty agreement and finalizing
the loan and royalty agreement with the Southern Arc (to be
completed in 60 days).
On behalf of the Board of Southern Arc Minerals Inc.
"John Proust"
Chairman & CEO
Cautionary Note
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as such term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
This news release contains forward-looking statements
relating to expected or anticipated future events and anticipated
results that are forward-looking in nature and, as a result, are
subject to certain risks and uncertainties, such as general
economic, market and business conditions, competition for qualified
staff, the regulatory process and actions, technical issues, new
legislation, uncertainties resulting from potential delays or
changes in plans, uncertainties resulting from working in a new
political jurisdiction, uncertainties regarding the results of
exploration, uncertainties regarding the timing and granting of
prospecting rights, uncertainties regarding the Company's ability
to execute and implement future plans, and the occurrence of
unexpected events. Actual results achieved may vary from the
information provided herein as a result of numerous known and
unknown risks and uncertainties and other factors.
SOURCE Southern Arc Minerals Inc.
