VANCOUVER, Dec. 12, 2017 /CNW/ - Southern Arc Minerals
Inc. (TSX-V: SA) ("Southern Arc" or the "Company") has
completed the sale of the West Lombok Property (the
"Property") to PT Ancora Indonesia Resources, Tbk
("PT Ancora"), in consideration for a US$2 million cash payment and the granting of a
3% Net Smelter Return royalty ("NSR"). Under the terms of
the agreement, PT Ancora has the right to buy back the NSR from
Southern Arc at any time by paying an additional US$2 million.
Southern Arc has used the cash proceeds from the sale to acquire
100 million shares of PT Ancora (5.66% of PT Ancora's issued and
outstanding) from third parties in a private
transaction.
PT Ancora, an Indonesian company listed on the Indonesia Stock
Exchange (OKAS:IJ), acquired all of the issued and outstanding
shares of Southern Arc's Singaporean subsidiary Indotan Lombok Pte
Ltd ("IL"). IL owns 90% of PT Indotan Lombok Barat
Bangkit, an Indonesian company, which holds the exploration permit
("IUP") for the Property which is located on Lombok Island
in Indonesia. The Property covers a 13 kilometre long by 7
kilometre 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.
Chairman and CEO, John Proust,
stated, "We are pleased to complete the sale of the West Lombok
Property. This property divestiture is consistent with Southern
Arc's revised business strategy, initiated at the end of 2012 to
reduce the Company's capital and political risks. Further to this
strategy, the 5.66% interest in PT Ancora and the 3% NSR allow
Southern Arc and its shareholders to maintain their exposure to the
Property's upside potential."
On behalf of the Board of Southern Arc Minerals Inc.
"John Proust"
Chairman & CEO
About Southern Arc
Southern Arc is a Canadian company focused on enhancing
shareholder value through strategic investments in mineral resource
companies with a focus on gold and copper-gold. Southern Arc's
management team identifies highly prospective assets in politically
safe jurisdictions and seeks to unlock their value by providing
strategic investments, proven technical skills, global knowledge,
and increased access to industry relationships. More information is
available at www.southernarcminerals.com or by email at
info@southernarcminerals.com.
About PT Ancora
PT Ancora Indonesia Resources Tbk is an Indonesia-based holding company listed on the
Indonesia Stock Exchange (OKAS:IJ). The Company, through its
subsidiaries, is engaged in the production and trading of ammonium
nitrate and nitric acid used as explosives to support activities in
the mining and cement industries and is engaged in the oil and gas
sector, domestic shipping and transportation businesses, and mining
services.
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.
SOURCE Southern Arc Minerals Inc.
