Paramount acquires majority stake in Gunung Rosa mine

1 August 2012 (Last Updated August 1st, 2012 18:30)

Paramount Mining Corporation's subsidiary PT Paramindo has acquired an 85% stake in the Gunung Rosa gold, silver and base metal mining project in West Java, Indonesia, from PT Cikondang Kancana Prima (CKP).

Paramount Mining Corporation's subsidiary PT Paramindo has acquired an 85% stake in the Gunung Rosa gold, silver and base metal mining project in West Java, Indonesia, from PT Cikondang Kancana Prima (CKP).

Paramindo initially owned a 51% stake in the mine but has paid $1.75m of the final $2m to project owners to bump up its share by 34%.

The remaining $250,000 will be paid following the finalisation of the environmental impact assessment, which will be complete in nine months.

Paramount CEO and MD Terry Holohan said that the transaction marks the final chapter in the evaluation due diligence of the mining component of the project.

"We will soon be completing our metallurgical test work, where the payable metals are responding well in the laboratory to traditional metallurgical unit processes, and will be able to start our engineering studies in earnest, which we plan to complete later this year," he added.

"Once the metallurgical flow-sheet is finalised we will be in a position to purchase our long lead items, start the dewatering of the mine and commence operations within the underground workings."