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Monday, 27th April 2009 (824 views)

China Sci Tech Holdings (CST) has purchased the Martabe gold project in the North Sumatra province of Indonesia from Oz Minerals.

Under the terms of the $211 million deal (£144 million), CST will pay a deposit of $10 million upon signing the agreement and the remainder upon completion of the transaction.

The agreement is still awaiting approval from the Australian Foreign Investment Review Board, CST shareholders and Oz Minerals lenders and is expected to finalise in early June 2009.

CST will also reimburse Oz Minerals for expenditure of around $7.5 million spent on the Martabe project by Oz Minerals between April 1st 2009 and the completion date.

State-owned CST is listed on the Hong Kong stock exchange and has been pursuing mining interests in recent months.

The company now plans to centre its mining and investment business on the Martabe project and has appointed an experienced team and formed a strategic relationship with an Indonesian partner.

 

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