Far East Gold Moves to Majority Ownership of Idenburg Gold Project

Majority Ownership Consolidates Control at Idenburg

Far East Gold Limited (ASX:FEG) has crossed a pivotal threshold, moving to 51% ownership of its flagship Idenburg Gold Project in Papua Province, Indonesia. This milestone was achieved through the completion of Stage One under a Conditional Share Purchase Agreement, which included issuing 50 million shares valued at AUD 6.5 million to the vendors’ nominee at a price of AUD 0.13 per share.

The project boasts a JORC (2012) inferred mineral resource of approximately 780,000 ounces of gold at an average grade of 3.1 grams per tonne. Majority ownership not only consolidates FEG’s exposure to this high-grade resource but also strengthens its hold on the broader exploration upside within the Idenburg Contract of Work.

Strategic Steps Toward Development and Increased Ownership

With Stage One Completion behind it, Far East Gold is advancing the Indonesian Feasibility Study, aiming to lodge the documentation with the Ministry of Energy and Mineral Resources (ESDM) by the fourth quarter of 2026. Upon acceptance of this study by the ESDM, FEG will be entitled to increase its stake in the project to 80%, a significant jump that underscores the company’s clear, well-defined pathway from exploration to development.

The Idenburg Scoping Study is also nearing completion and under final review before release to the ASX. This study represents a key milestone in the company’s transition toward project development, offering investors a glimpse into the potential economics and operational plans.

Corporate Maneuvers and Regulatory Approvals Completed

The share issuance that facilitated the ownership increase was pre-approved by shareholders at an extraordinary general meeting in November 2024, and the company has fulfilled all conditions precedent outlined in the CSPA, including expenditure thresholds and regulatory consents. This smooth progression reflects both the company’s commitment to the project and its ability to navigate Indonesia’s regulatory environment.

CEO Shane Menere highlighted the significance of this ownership milestone, emphasising that it is a platform for further value creation. “Few junior explorers can point to such a clear, fully defined pathway from exploration through to development and increasing ownership of a flagship asset,” he said.

Ongoing Exploration and Resource Growth Programs

Far East Gold is continuing its drilling and resource expansion efforts across the Idenburg Contract of Work, aiming to upgrade the inferred resource and potentially expand the known mineralisation. This ongoing program supports the company’s strategy to enhance project value ahead of the feasibility study submission.

While the inferred resource classification indicates a lower confidence level, the company expects that further drilling and exploration will upgrade much of this to a higher resource category, a critical step before any reserve declaration or mine development.