PT Merdeka Copper Gold Tbk. and PT J Resources Asia Pasifik Tbk are looking to combine their gold assets in the Gorontalo province in Sulawesi, Indonesia.
Merdeka Copper controls the Pani mining IUP through its 66.7% ownership of PT Pani Bersama Jaya; Lion Selection Group Ltd. holds the remaining stake. J Resources Asia controls a 100% interest in the Pani project through PT J Resources Nusantara.
Following the transaction, Pani Bersama Jaya and J Resources Nusantara will respectively own 60% and 40% of Pani Bersama Tambang, which has kicked off an 11,000-meter drill program between the Pani IUP and Pani project.
The company decided to develop the projects jointly as reserves for both projects would have been constrained by the need to maintain pit walls within the respective tenements if they were developed separately.
The companies said Jan. 6 that overall reserves of the combined project are likely to be significantly higher than the separate projects.
"One combined project will provide significant economies of scale with ore processed through one larger process plant," the companies said.
The Pani IUP is estimated to host mineral resources of 89.5 million tonnes at 0.82 g/t gold containing 2.4 million ounces, and the mineral resource for the Pani project stands at 72.7 Mt at 0.98 g/t gold containing 2.3 Moz, according to a news release.