Mr. Alfred Hills reports
KOBEX SIGNS MOU ON INDONESIAN NICKEL LATERITE PROPERTY
Kobex Minerals Inc. has signed a memorandum of understanding (MOU) to acquire the exclusive right to negotiate for the acquisition of an 85-per-cent indirect interest in a nickel laterite property on the island of Sulawesi, Indonesia.
The MOU is between Kobex and Geologic Systems Ltd., a private British Columbian company, which holds the exclusive right to negotiate by Nov. 20, 2012, a definitive agreement for the acquisition of an 85-per-cent interest in PT. Citra Lampia Mandiri, a private Indonesian company, holds an exploration and exploitation licence (IUP) on the Lampia property totalling about 10,000 hectares.
The Lampia property has in excess of 676 drill holes, indicating the near-surface presence of nickel-rich limonite and saprolite horizons. Development of the property had commenced anticipating the export of unprocessed ore, but was halted with the enactment in May, 2012, of mining regulations restricting exports to domestically processed value-added products. Prior to these export restrictions, Indonesia was a significant supplier of nickel laterite ore to China for use as feedstock in the production of nickel pig iron, a low nickel-grade iron alloy used extensively in China for the production of stainless steel.
Geologic has a binding letter of intent (LOI) with Asia Pacific Mining Resources, which allows Geologic to acquire APMR's 85-per-cent interest in CLM by negotiating a definitive agreement with APMR having the following cash payments:
- $2.5-million (U.S.) on signing a definitive agreement on or before Nov. 20, 2012;
- $4-million (U.S.) on or before the start of project construction;
- $5-million (U.S.) on or before the start of commercial production;
- $30-million (U.S.) within the first three years of commercial production;
- A royalty of $1.75-million (U.S.) per dry tonne ore processed.
The MOU between Kobex and Geologic assigns to Kobex Geologic's right to negotiate and to enter into a definitive agreement based on the following cash payments and issue of shares to Geologic:
- $25,000 on signing of the MOU;
- $25,000 and two million Kobex shares on Kobex signing a definitive agreement with APMR;
- Three million Kobex shares on or before the start of construction following the cash payment to APMR;
- Three million Kobex shares or before the start of commercial production following the cash payment to APMR.
Under the MOU Kobex can, without obligation, terminate its interest at any time.
Kobex has commenced technical, commercial and legal due diligence, and the negotiation of a definitive agreement with APMR.
Any definitive agreement will be subject to conditions for the benefit of Kobex, including acceptance of the TSX Venture Exchange and entering into satisfactory arrangements with the owner of the remaining 15-per-cent interest in CLM.