14 Apr 2010

Gold miner signs deal with Papuan landowners

11:10 am on 14 April 2010

The exploration company Mercator Gold has announced that an agreement has been reached with landowners over its River gold project in Indonesia's Papua Province.

The agreement with the indigenous Wolami people of the river region has been signed, setting out terms of compensation and access, in what is believed to be one of the first such agreements to be signed in Indonesia's Papua.

The project is to be driven by Paniai Gold Limited which holds a 50% interest in a joint venture over the Derewo River project with a local company.

Mercator holds 50 million shares in Paniai Gold Limited which plans to list on the National Stock Exchange of Australia.

An environmental impact study has reportedly been completed and submitted for approval.