Australian resources company Chameleon Mining NL (CHM) has entered into a conditional heads of agreement to acquire a 55% interest in a significant manganese project currently owned by an Indonesian limited liability company (MKI) with potential for early production (Kupang Project) (Transaction). The Kupang Project is located in (Kupang) West Timor, in the Indonesian province of Nusa Tenggara Timur (NTT), a region well known globally as a source of high-grade (+46% Mn) Manganese ore.
Subject to satisfaction of a number of conditions precedent, in consideration for payment of A$3.5M, the Company through a wholly owned subsidiary will acquire 100% of NTT Manganese Pty Ltd (NTT) which holds a 30% interest in PT Kupang Resources (PT Kupang) which, following a restructure, will indirectly hold 100% of the rights to manganese produced from the Kupang Project. Refer to Figure 1 for further details of the proposed structure on completion of the transaction and the restructure.
NTT’s interest in the Kupang Project is held via an incorporated joint venture structure (being the MKI) (Kupang Resources Joint Venture). NTT will then increase its interest in the Kupang Resources Joint Venture (and therefore the Kupang Project) to 55% (following the restructure) through the expenditure of a further A$6.5M. The remaining interest in the Kupang Resources Joint Venture is held by three local Indonesian stakeholders.