Monday, January 04, 2010

Prosperity raises $1M for Aceh gold project

Inner Mongolia Tai Xi Mei Group Co Ltd has exercised 10 million options at 10 cents per share of Prosperity Resources Ltd. Prosperity will use the funds raised to finance the working capital for its projects in Aceh, Indonesia and Australia. Tai Xi Mei is one of Prosperity's strategic investors.
Prosperity is exploring gold in Pinang-Pinang project, Aceh province. The company has total issued shares of 242 million with the last quoted price of $0.115.
Other than Pinang-Pinang, Prosperity has acquired two other gold exploration concessions in Aceh. The northern most 5,000 hectares KP is held by PT Bintang Agung Mining (BAM) and the adjoining KP to the south is held by PT Mulia Kencana Makmur. The three KUDs marked in the MKM KP are excluded from the project area. This land is held by local Indonesian co-operatives and Prosperity will work with these groups to negotiate terms to acquire these land packages. 
Prosperity, through its 81% owned Indonesian subsidiary, PT Prosperity Surya Persada, will earn an 80% shareholding interest in PT BAM and PT MKM through total exploration expenditure of US$1.25 million on each project over a two year period and granting them of 10 million fully paid ordinary shares in Prosperity Resources Ltd for each project area.

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