logo-loader

Southern Arc remains committed to seeking funding partner for West Lombok

Published: 23:57 02 Jun 2014 AEST

indonesia350_538c831aa8968

Southern Arc Minerals (CVE:SA) (OTCQX: SOACF) says it remains confident that it will find a suitable funding partner for its West Lombok property in Indonesia. 

The statement was made in the company's fiscal third quarter financial results, in which it was revealed it ended the period to March 31 with $4.6 million in workjing capital. At May 29, the junior explorer had $2.8 million in working capital, according to the release. 

Since releasing a resource estimate for its West Lombok property in Indonesia last July, the company has maintained a low level of activity as it seeks a funding partner and redirects its cash to acquiring new assets in stable regions as a way of building shareholder value more effectively.             

The company said that it is seeking a potential farm-in agreement, partnership or an outright sale of the West Lombok property, and is still continuing advanced discussions with a "number of companies" in this regard. 

"Southern Arc remains confident that it will find a suitable arrangement, and is working diligently to conclude a transaction that will bring value to the company," it said in its most recent statement. 

Southern Arc also owns a stake in Eagle Hill Exploration, which is developing the Windfall Lake gold project in Quebec. In March, Southern Arc bosltered its interest in Eagle Lake via a $4.5 million private placement, increasing its stake to 31.67% on fully diluted basis. The participation in the offering follows on from a $12 million invesment with Dundee Corporation in Eagle Hill last August, to fund a drilling program designed to expand resources.

Windfall Lake is located between Val-d’Or and Chibougamau in the Abitibi Gold Belt, a highly favourable jurisdiction for exploration and mining. The greenstone belts of the Abitibi region constitute one of the most prolific gold-producing regions in the world, having produced over 170 million ounces of gold to date. The project is easily accessible by paved highways and all-weather gravel roads and has substantial infrastructure on site, including a 58-person camp and a 1,450-metre access ramp.

Earlier this year, Eagle Hill released an updated mineral resource estimate for Windfall Lake, increasing the contained gold by 38%. SRK Consulting estimated an indicated mineral resource of 2.38 million tonnes grading 9.75 g/t gold for contained gold of 744,000 ounces, with an additional inferred mineral resource estimated at 3.08 million tonnes grading 7.37 g/t gold for contained gold of 731,000 ounces.

These grades make Windfall Lake one of the highest grade resource-stage gold projects in the world, according to Southern Arc's statement.

For the three months to the end of March, Southern Arc reported total assets of $12.57 million. It posted a net loss of $765,358, compared to a loss of $527,628 for the year earlier period as expenses increased. The company also wrote off an additional $252,228 of exploration expenditures incurred on its West Lombok and Taliwang properties during the period, versus nil a year ago.

Poseidon Nickel signs binding agreement with Mineral Resources to divest...

Departing Poseidon Nickel Ltd (ASX:POS, OTC:PSDNF) CEO Craig Jones and incoming CEO Brendan Shalders join Proactive’s Jonathan Jackson to discuss the divestment of Lake Johnston to Mineral Resources Ltd (ASX:MIN). Jones, who has played a pivotal role in this strategic move, shared insights on...

4 hours, 35 minutes ago