Krakatoa Resources (ASX: KTA) has signed a Memorandum of Understanding with Tiga Serangkai Group giving it the exclusive right to assess, explore, acquire, joint venture, or offtake 5 iron ore tenements in Indonesia.
One of the four tenements in Lampung is currently producing iron ore using an on-site crushing plant. The remaining tenement is located in South Sulawesi.
The company will immediately begin assessment and exploration activities on the Lampung tenements.
The CBL Production IUP in Samanka Bay, Lampung, is currently stockpiling iron ore using the on-site crushing plant. This area is located about 1 kilometre from Tiga’s jetty where ore can be loaded directly on to barges for transport of 115 kilometres across the Sunda Strait to Sitasa Group’s existing customer, the Krakatau Posco Steel Plant.
The 3 Exploration IUP’s in Lampung are also in the immediate area surrounding the CBL Production
IUP and provide a combined area of 515 hectares.
Should exploration activities on any of the IUP’s be successful, Krakatoa can exclusively negotiate with Tiga to:
- Acquire the IUP;
- Enter into a Joint Venture on the IUP;
- Have an exclusive off-take on the IUP;
Krakatoa has a strategic alliance with Sitasa Group, Indonesia’s leading high grade iron ore producer and supplier to the domestic steel industry, giving it leverage to acquire further promising Indonesian iron ore tenements that are banned from exports and have yet to secure domestic customers.
Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.