Far East Gold Ltd (ASX:FEG, OTC:FEGDF) managing director Shane Menere joins Proactive’s Tylah Tully to discuss the Conditional Share Purchase Agreement (CSPA) the company has entered with PT Iriana Mutiara Idenburg (IMI) to acquire up to 100% of the Idenburg Gold Project in Papua province, Indonesia.
Initially, the agreement allows FEG to acquire a 51% interest in the 95,280-hectare project, subject to conditions.
The project is in a region renowned for significant gold and copper deposits, such as Grasberg, Porgera and Frieda River.
The Idenburg acquisition is part of FEG’s strategy to enhance its portfolio and position itself as a holder of world-class assets. The project has excellent logistics, being accessible by a national highway and located near Jayapura, the provincial capital.
Historical drilling and sampling at the site have revealed high-grade gold intercepts, including significant results from the Sua, Mafi and Bermol prospects.
Commercial terms include an exclusivity period, staged investments and the issuance of shares to the vendors.
FEG must spend A$5 million within 24 months and will issue additional shares, progressing towards 80% ownership through an Indonesian feasibility study. To achieve 100% ownership, the vendors may retain a 20% economic interest or opt for a 2% Net Smelter Royalty.