Ark Mines (ASX:AHK) has been granted a further extension to complete its due diligence over and secure unconditional shareholder approval for an Indonesian copper gold project, Central Kalimantan.
The company has 30 business days after holding the extraordinary general meeting to approve the acquisition, to exercise its option to acquire Sphere Complex Limited, which owns PT PMM the holder of the Masuparia Contract of Work.
Ark will pay the vendors A$4 million and 10 million shares for Sphere and the project. This will be funded through its own equity.
About US$22 million has been spent on exploration at Masuparia to date including 18,000 metres over the Ongkang gold deposit could be brought into production within 12 months.
Ark believes that it can upgrade Ongkang with limited infill drilling and is aiming for a target of between 600,000 tonnes and 1 million tonnes at between 5 and 10 grams per tonne with five diamond drill holes.
The Mount Muro, gold project, which has historically produced 1.3 million gold ounces, is located 20 kilometres from the acquisition, and the Kelian gold project, which to date has produced 7 million ounces of gold, is in the same region.