Pursuit Enters into a letter of intent with its Indonesian partner to expand its Indonesian exploration activities.
There will initially be at least eight different exploration projects, a number of which are highly prospective. The portfolio of interests will be allocated into two new companies based on their geographical location.
As a result of these transactions, Pursuit has expanded its exposure in Indonesia to become one of the largest property holders in Indonesia.
The first company, to be called Golden Tiger Corporation, will hold carried interests ranging from 5 percent to 20 percent in fifteen (15) Contracts of Work (COW's) previously acquired and recently applied for by various international mining companies in Kalimantan. The company will also hold a 100 percent interest in a 340,000 hectare COW application in West Kalimantan where surface artisanal workings and structural geology indicate significant potential.
The second company, to be called Java Gold Corporation, will hold majority interests in a number of gold projects in Java, Sumatra and other islands. One of the key projects in this company includes a newly identified six kilometre gold bearing structure traversing a large altered volcanic centre.
To finance these projects the two new Ontario corporations to be formed will be financed by Pursuit and other investors, initially as private companies. Pursuit will retain a significant equity interest in both these companies and will have the right to earn 60 percent of any two projects by providing production financing. In addition, Pursuit has negotiated the right to increase its equity interest to 90 percent on its own Kalimantan projects, in which Pursuit's Indonesian partner has a 20 percent carried interest.
In order to accommodate these additional transactions, Pursuit has made arrangements for short term borrowings of between US$5,000,000 and $7,000,000, since it has expended in excess of US$18 million of its own capital on refundable deposits to secure its own portfolio of exploration properties. This borrowing will be repaid upon the return of the deposit monies, which are refundable within the next six month period.
Pursuit is a Canadian public company whose shares are listed on the Toronto Stock Exchange (symbol "IPJ").
CONTACT: International Pursuit Corp.
Stephen R. Dattels
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|Date:||Feb 12, 1996|
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