Arch, Anglo relationship also covers service deal

By Ruli Setiawan

Australian-listed gold miner Arc Exploration Limited said that its relationship with Anglo American would cover Papua Joint Venture, service agreement and Trenggalek project in East Java.

The company said in the statement that in terms of service agreement, Arc Exploration would supply geological evaluation and exploration services to Anglo.

Arc Exploration earlier entered into an agreement with Anglo American covering its Trenggalek Project in East Java. Anglo American has recently undertaken high resolution airborne magnetic and radiometric surveys over the entire 300 km2 Trenggalek IUP tenement and is currently carrying out ground geochemical sampling and mapping in selected areas.

Following completion of the surveys and evaluation of results Anglo American may elect to move forward and earn a majority interest by sole funding ongoing activities at the Trenggalek Project, it said.

?Arch Exploration is well funded. It has cash of over $4 million, no debt and a ?cash burn? rate presently well below $400,000 per quarter,? it said.

Editing by Adianto P. Simamora