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VN Buss. News (Mar. 12-13/1997)
Mar 13: Indochina, Olympus in Vietnam gold deal
Mar 13: Indochina Goldfields To Sell Vietnam Property Stake
Mar 13: Malaysian firm affirms interest in troubled Vietnam refinery plan
Mar 12: Vietnam: Bidding For Highway To Cambodia Seen Late In '97
Thursday, Mar 13, 1997
Indochina, Olympus in Vietnam gold deal
Indochina Goldfields Ltd. is selling its interests in adjoining
gold exploration prospects at Bong Mieu and Tien Ha in central
Vietnam to Olympus Pacific Minerals Inc.
The proposed US$7.5-million sale, in cash and shares, would see
Indochina recover all acquisition and exploration expenses
incurred in Vietnam.
The company holds the only foreign-owned investment and mining
licence in Vietnam, at Bong Mieu and was recently awarded the Tien
Ha exploration licence.
The deal would also give it up to 20% of Olympus and a 2% gross
production royalty on future production from properties in
Vietnam.
Indochina intends to join Olympus and a third partner in a venture
to explore Phuoc Son, once licences are received from the
government.
Terms of the proposed transaction provide for the transfer of
Indochina's Vietnam subsidiary to Olympus. Olympus would pay
US$3.75 million on closing, by May 31, plus US$1 million a year
later.
The company would also issue to Indochina special warrants
exercisable for shares in Olympus worth US$2.75 million and
representing about 19.5% of outstanding share capital. Indochina
would have one director on the Olympus board. -- Financial Post
Thursday, Mar 13, 1997
Indochina Goldfields To Sell Vietnam Property Stake
SINGAPORE (AP, Dow Jones) -- Indochina Goldfields Ltd. (T.ING) said it has
agreed to sell its interests in adjoining gold exploration prospects at Bong
Mieu and Tien Ha in central Vietnam to Olympus Pacific Minerals Inc.</p>
In a news release, the company said the proposed sale, in cash and shares
valued at $7.5 million, would see Indochina recover all its acquisition and
exploration expenses incurred to date in Vietnam.</p>
The company said the transaction would also give it as much as 20% of the
shares of Olympus, and would allow it to retain a 2% gross production
royalty on future production from properties in Vietnam.</p>
In a related agreement, Indochina said it intends to join Olympus and a
third partner in a venture to explore the Phuoc Son area, subject to the
receipt of licenses from the Vietnam government.</p>
Indochina said terms of the proposed transaction provide for the transfer of
Indochina's Vietnam subsidiary to Olympus. It said Olympus would pay $3.75
million upon closing, by May 31, plus another $1 million one year later.</p>
The company said Olympus also would issue to Indochina special warrants
exercisable for shares in Olympus worth $2.75 million and representing about
19.5% of Olympus's outstanding share capital. Indochina would have one
appointee on the Olympus board, it said.</p>
Indochina said closing of the transaction is subject to regulatory approvals
and completion of a financing.</p>
Indochina said it currently holds the only foreign-owned investment and
mining licence in Vietnam, at Bong Mieu. It also was recently awarded the
Tien Ha exploration license.</p>
The company said Olympus is involved in an existing joint venture with New
Zealand-based Iddison Group Vietnam Ltd., which has rights to the Na Pai
gold prospect in northern Vietnam.</p>
Indochina said it has, through a separate subsidiary, applied for additional
exploration licences in the Phuoc Son area of Vietnam.</p>
Indochina said it, Olympus and Iddison have agreed to set up a joint
venture, in which Indochina would hold a 50%, to conduct any work that is
officially approved at Phuoc Son.</p>
Indochina has a portfolio of assets that includes gold and copper properties
and other interests in Indonesia, Myanmar, Kazakstan, South Korea, Vietnam
and Fiji.
Thursday, Mar 13, 1997
Malaysian firm affirms interest in troubled Vietnam refinery plan
KUALA LUMPUR (AFP) - Malaysian national oil firm
Petroliam Nasional Bhd. (Petronas) is still interested in
taking part in a 1.2 billion dollar plan to build Vietnam's
first oil refinery, despite a recent announcement by the
government in Hanoi that it would go it alone, it was
reported here Thursday.
Petronas was a member of a consortium -- along with South
Korea's LG International Corp., US-based Conoco, Taiwan's
Chinese Petroleum Co. and the China Investment Development
Corp -- which conducted a feasibility study of the project.
But the Vietnamese government dismissed the study and said
it had decided to build the refinery alone, including
raising the necessary funds for the project in central Dong
Guat.
Petronas president and chief executive Hassan Marican was
quoted Thursday as saying the company remained interested
in the plan.
"Now we're waiting for the (Vietnamese) government to
decide their next step," he was quoted as saying by the New
Straits Times daily.
"We have always said that we are interested in
participating and that remains so."
The Asian Development Bank Wednesday, while announcing it
would grant 1.5 billion dollars loans to Vietnam, said it
would not provide funds for the refinery.
Hassan said the Vietnamese government had also not decided
whether to approve Petronas takeover of Australian
resources giant BHP's stake in the Dai Hung oilfield off
Vietnam.
"We will take the necessary steps in anticipation of a
favourable answer by them," he said.
Petronas would emerge the major partner in the field if the
deal goes through, increasing its stake to 63.75 percent
from 20 percent. The other partners are PetroVietnam,
Japan's Sumitomo Corp. and France's Total.
BHP, which wrote off its 120 million US dollar investment
in the field last year, had said the field reserves did not
provide adequate cashflows to justify retaining a carrying
value for the asset.
But Hassan said: "Different operators have different
operating philosophies and cost structures. For Petronas,
it is about presence in Vietnam. We feel we can better
optimise the cost and make it viable to operate."
Petronas, which has extensive natural gas and petrochemical
operations, is a major revenue-earner, contributing about
8.7 percent of Malaysia's export earnings.