Infinio Group enters into conditional cooperation agreement on gold ore project

INFINIO Group, through its wholly owned subsidiary, Infinio Resources, has entered into a conditional cooperation agreement with PT Napal Umbar Picung (PT NUP), for the cooperative processing of a parcel of gold ore in Lampung, Indonesia.

PT NUP owns a mining concession, the Lampung Mine, in the South Lampung district of Lampung province.

The Lampung Mine has an existing gold processing plant on site which requires refurbishment as well as the reapplication of a licence to restart production.

It has been mined on a small scale and ore produced was being sold and exported for processing. But changes in the mining laws in Indonesia in January last year had disallowed the export of unprocessed ore and mining ceased due to export restrictions.

The high level of resources readily available for processing from the Lampung project presents a good opportunity, in Infinio's opinion.

"At relatively low risk, with a relatively small investment, the prospect may generate a one-off profit within a short time frame," the company said in a statement.

Infinio is embarking on a new business direction, with a focus on mining. Its key mining projects include a gold mine project in Western Australia and a copper and gold project in North Sumatra, Indonesia.

Infinio is also in the midst of discussing the possible acquisition of the entire issued and paid-up share capital of PT NUP, subject to certain conditions.