--ADDS BROKER COMMENT--
The company, which is listed on the junior exchanges in London and Toronto, will regain 100% of KSK CoW as of January 31, having struck the alliance in April 2011.
It stressed Freeport’s decision to cease sole funding was “not based on the geological prospectivity of the project”, which it believes to be significant.
The company said it will now make contact with a number of Indonesian groups which expressed an interest in the project last year to discuss possible partnerships.
Freeport, which was earning a 51% interest in KSK, funded $33 million of exploration work since the JV’s inception, including more than 30,000 metres of drilling, over 28,000 analysed samples and 4,762 line kilometres of airborne geophysical surveys.
A drill plan has been prepared to expand the identified zone of mineralisation at the exciting Beruang Kanan prospect.
“Freeport has been a magnificent joint venture partner which has hugely developed our understanding and significantly enhanced the prospectivity of the KSK CoW,” said chief executive Faldi Ismail.
“We remain optimistic that a new partner will be found to complete the project and will shortly recommence discussions with those interested parties.”
Broker Northland Capital called Freeport’s departure “unfortunate”, but picked out the positives in the news.
“The exit does, however, give Kalimantan 100% of the project, from 49%, at no cost and provides an opportunity to bring in a new partner on more favourable terms,” said analyst Dr Ryan Long.
He adds that potential partners will have a wealth of exploration data available to them.
The shares fell 26% to 1.56p each.