Financing arranged for TNK in Indonesia

A $10-million financing is providing TNK Resources (CDN) with funds to explore and expand its Indonesian property holdings.

The junior plans to increase its interest to 50% from 30% in the Marunda Wahau Contract of Work (CoW) on the island of Kalimantan. To acquire this additional interest, the company must spend US$2 million on exploration.

The company intends to complete the acquisition of a 10% interest in each of four additional CoWs (two in Kalimantan and two in Sumatra). It also plans to explore its diamond properties in Botswana, Africa.

A first phase of exploration is already under way at the Marunda Wahau gold prospect, to be followed up by geophysical surveys. After the data are processed, a team of geologists will be mobilized to a base camp near the project area to start mapping and outlining drill targets.

TNK notes that gold is present within rivers on the property, both in alluvial and hard-rock deposits.

TNK is also looking forward to results from exploration at its other four CoWs, where it has a 10% carried interest.

The company’s Indonesian partner on these CoWs recently entered into an agreement with Radisson Mining Resources (ME), whereby Radisson can acquire up to a 50% interest in the Buntok prospect.

Once Radisson spends US$2 million on exploration, the CoW will be held 50% by Radisson, 40% by the Indonesian partner and 10% by TNK.

TNK notes that its Indonesian partner is seeking similar joint-venture agreements on the other three CoWs.

Meanwhile, in Botswana, TNK reports that 15 priority drill targets will be tested this summer in the Gope area.

The company also owns 66% of Midswana Diamond Exploration which owns a 100% interest in the Middlepits prospect, in southeast Botswana. This project hosts a diamond resource in gravels, estimated to contain 40 million carats of diamonds (0.045 carat per cubic metre).

Bulk sampling is planned for later this year, which will involve a pilot-plant on site. The sale of diamonds recovered during this program is expected to offset the cost of evaluating the gravels.