Listed Australian gold explorer Stratos Resources is to acquire a 60% share in Yinchen, an Indonesian private smelter with associated mining leases on Belitung island. The Yinchen smelter was established eight years ago and historically produced 300 – 500 tpm of tin, but is currently on care and maintenance. The deal involves 11 mining tenements which have hosted small-scale mining in the past and which are said to have both alluvial and hard rock potential.
Stratos will pay Tennant Metals A$1 million and invest A$2 million in developing the project. Planned investments include geological studies and refurbishment of the smelter. The deal is to be facilitated by financing from Tennant’s European-based parent company Metalcorp and Tennant will have an offtake agreement for all tin produced by the Yinchen smelter. Local Indonesian partners will retain up to 30% of the project and Tennant will hold the balance.
