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Market: ASX
Sector: General Mining - Copper
EPIC: FND
Latest Price: A$0.30  (0,00%)
52-week High: A$0.51
52-week Low: A$0.28
Market Cap: A$85.42M
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Finders Resources Limited
www.findersresources.com

Finders is an emerging low cost copper cathode producer, developing a high grade 25,000 tpa copper mine on Wetar Island in Indonesia, plus a highly prospective, advanced gold-silver exploration project in Sumatra.

 

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Finders Resources takes full control of Wetar copper project ahead of commercial production

21st Jan 2011, 9:19 am The deal increases Finders' economic interest in the project ahead of commercial production

Finders Resources (LON:FND, ASX:FND) has restructured ownership of its flagship Wetar copper project, moving to full ownership of Banda Minerals to raise its economic interest in the project.

The company bought the remaining shares of Banda from its local Indonesian partner PT Batutua Kharisma Permai (BKP).

Finders called the deal an important step in a broader restructuring of the project as it approaches commercial production, adding that it also provides tax benefits.

As Finders' local partner, BKP is the legal holder of the Wetar mining tenements, held a minority interest in Banda and was entitled to a royalty on the Wetar project equal to 5% of net profits.

To ensure compliance with the new Indonesian mining regulations, Finders has reached commercial agreement to merge PT Batutua Tembaga Raya (BTR) with BKP to move to full ownership of the mining tenements and extinguish the royalty.

Under the terms of the deal, BTR shareholders will be entitled to a 5% interest in the merged entity, with Finders holding a 95% interest.

The company said that it is currently reviewing the legal and taxation mechanics of the merger and will develop a  timetable to complete the transaction in due course.

At 31 December 2010, BKP's interest in Banda had been diluted to 3.7% through project expenditure.

In late October, Finders reported that the Wetar project’s demonstration plant in Indonesia was operating as forecast and on budget, with 341 tonnes of copper cathode being produced in the third quarter ended 30 September 2010.

Around 361 tonnes were sold in the quarter at an average price of A$7,227 per tonne.

Later in 2010, Finders decided to delist from the AIM market of the London Stock Exchange and retain only its Australian listing.

The cancellation will take effect on 26 January 2011, which means that 25 January will be the last day of trading of Finders’ shares on AIM.

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