Kobex signs an MoU on acquisition of nickel property in Sulawesi

By Peni Pedriawan

Kobex Minerals Inc. (Kobex) has signed a Memorandum of Understanding (MoU) to acquire the exclusive right to negotiate for the acquisition of an 85 percent indirect interest in a Nickel Laterite property on the island of Sulawesi, Indonesia.

The MOU is between Kobex and Geologic Systems Ltd. (Geologic), a private B.C. company, which holds the exclusive right to negotiate by Nov 20, 2012 a definitive agreement for the acquisition of an 85% interest in PT. Citra Lampia Mandiri (CLM), a private Indonesian company. CLM holds an exploration and an exploitation licence (IUP) on the Lampia property totaling about 10,000 hectares.

The Lampia property has in excess of 676 drillholes, indicating the near surface presence of nickel rich limonite and saprolite horizons. Development of the property had commenced anticipating the export of unprocessed ore but was halted with the enactment in May 2012 of Mining Regulations restricting exports to domestically processed value-added products.

Prior to these export restrictions Indonesia was a significant supplier of nickel laterite ore to China for use as feedstock in the production of nickel pig iron, a low nickel grade iron alloy used extensively in China for the production of stainless steel.

Geologic has a binding Letter of Intent (LOI) with PT. Asia Pacific Mining Resources (APMR) which allows Geologic to acquire APMR's 85% interest in CLM by negotiating a definitive agreement with APMR.

The MOU between Kobex and Geologic assigns to Kobex Geologic's right to negotiate and to enter into a definitive agreement based on cash payments and issue of shares to Geologic. Under the MOU Kobex can, without obligation, terminate its interest at any time.

Kobex has commenced technical, commercial and legal due diligence and the negotiation of a definitive agreement with APMR.

Any definitive agreement will be subject to conditions for the benefit of Kobex, including acceptance of the TSX Venture Exchange and entering into satisfactory arrangements with the owner of the remaining 15 percent interest in CLM.

Editing by Benget Besalicto Tnb.