ASX Company News: Ark Mines Acquires Sphere Complex Ltd

September 14th, 2011Jeff

Ark Mines Ltd (AHK) announced that it will acquire 100% of Sphere Complex Limited, a company which is the indirect majority owner and controller of PT PMM (99.999575 %) which holds a highly prospective and advanced exploration project, the Masuparia Contract of Work located in Central Kalimantan, Indonesia. The project is located in a region well known for copper-gold projects. The Mount Muro, gold project, which has historically produced 1.3 m oz Au, is located 20 kilometres from Masupuria, and the Kelian gold project, which to date has produced 7 million ounces of gold, is in the same region. The Masuparia project is supported by a fully functioning office in Jakarta, headed by an Australian geologist with 25 years’ experience working in Indonesia, and three senior Indonesian geologists with a combined 40 years’ experience. Under the terms of the agreement, Ark will acquire the business and COW for $4 million cash, and issue the vendors 10M Ark shares. Ark will be funding this through equity. All personnel currently engaged on the project will continue to operate as part of Ark.

Ark’s Managing Director Roger Jackson said: “This is a very exciting acquisition for Ark, as this advanced project gives us the capability to be producing gold within twelve months*, and the opportunity to define significant resources on the tenement. These are likely to be world class deposits as this is a geologically stunning location.” “Also encouraging about Masuparia is that it is well serviced by existing infrastructure, and with several mines in the region, toll treatment options are also potentially available. The project is well supported by a talented team of professionals, and with all infrastructure in place in Jakarta and near to the project, this is a walk-up opportunity for Ark.”

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