Int’l Pursuit spins off Indonesian properties

Toronto-based International Pursuit (TSE) and its Indonesian partner will develop properties held by the latter in Kalimantan, Sumatra and Java.

A proposed agreement calls for at least eight projects to be transferred into two new subsidiaries of International Pursuit.

The first company, to be called Golden Tiger Corporation, will hold carried interests ranging from 5% to 20% in 15 contracts of work (CoW) in Kalimantan. It will also hold a 100% interest in a 340,000-hectare CoW application in West Kalimantan.

The second company, to be called Java Gold, will hold a majority interest in several gold projects in Java, Sumatra and other islands. One of the properties hosts a 6-km-long, gold-bearing structure that cuts through a large, altered volcanic centre.

Initially, the companies will be privately owned and funded by Pursuit and other investors. Pursuit will retain a significant equity interest and the right to earn a 60% interest in any two projects by providing production financing. Also, the company can increase to 90% its equity interest in its own projects in Kalimantan. To fund the additional transactions, the company has borrowed US$5-7 million on a short-term basis, to be repaid later in 1996.