Adelaide Now reported that Lincoln Minerals ill earn 45% stake in an iron ore mine and exploration concession in the Indonesian part of Borneo island, owned by Samusa Corporation.
Lincoln has loaned Samusa US dollars 50,000, on top of the US dollars 2 million, to start mining immediately and transport the existing ore to market. A three-month contract with a Chinese buyer has been agreed for this ore.
Samusa has the exclusive rights to two exploration areas in south-central Kalimantan province, covering 4911 hectare. Trial mining has amassed a stockpile of 7000 tonnes to 10,000 tonnes of iron ore, which Lincoln says graded 67.2% iron.
Samusa also has developed a stockpile site, weighbridge and barge-loading facility about 70 kilometres from the mine site, on a river which flows past the port of Sampit.
Dr John Parker MD of Lincoln said that the US dollars 2 million will be used to explore for more high grade iron ore. Dr Parker said the aim is to develop a small scale, high grade mine, producing about 250,000 tonnes of iron ore in its first year.
He added that the company is connected to the project through one of its Malaysia based cornerstone investors.