Western Manganese sets up alliance with Borneo Brothers

Western Manganese Limited (WMN), an Australian miner, said it has set up strategic alliance with Borneo Brothers Limited, a well established exploration company in Indonesia.

Under the deal, Western Manganese will have an option to buy 51 percent of the issued shares of PT Genesis Berkat Utama (Genesis), a manganese concession with IUP Production license in Toli Toli, Central Sulawesi.

It said Borneo Brothers brings highly experienced finance and due diligence team backed by a strong and well established network of Indonesian political, business and community alliances.

In addition, WMN will gain exclusive access to Borneo Brothers pipeline of Indonesian manganese concessions.

There are currently six projects in the pipeline which are located in East Nusa Tenggara province, Central Sulawesi and Halmahera, with total area of 9,233 hectares.

Western Manganese has paid consideration of AU$100,000 in cash upon signing of the Heads of Agreement, while 2 million fully paid WMN shares and 5 million WMN options (exercisable at 20 cent on or before 30 June 2013) will be issued to Borneo Brothers upon the transfer of the option to acquire 51 percent of the issued shares of Genesis.

The realization of the share purchase plan is subject to shareholder and any regulatory approval if required. (romel)