Estrella signs MOU with Murak Rai Timor for joint exploration and mining ventures in Timor-Leste

Estrella Resources Limited (ASX:$ESR) has signed a binding Memorandum of Understanding (MOU) with state-run Murak Rai Timor (MRT) to create a joint-venture partnership to explore for and potentially exploit mineral deposits in Timor-Leste. The MOU initiates the process whereby Estrella and MRT will create a joint-venture (JV) and will see MRT free-carried at 30% up to the public release of a Definitive Feasibility Study pertaining to Mining Concessions granted to Estrella by the Timor-Leste Government.

Executive commentary on joint-venture partnership

The Timor-Leste State-Owned Mining Company welcomed the signing of the Memorandum of Understanding and the future partnership between the two companies. Partnerships with credible industry players such as Estrella Resources will play an important role in the development of the Timor-Leste mining sector and allow MRT and the Country to continue to grow in what is a critical element of the Nation's economic diversification strategy. 'I am extremely pleased to be able to confirm the signing of this extremely important partnership with the Timor-Leste government body created for the sole purpose to stimulate and participate in the country's minerals exploration and mining developments,' said Estrella Managing Director Chris Daws.

Summary of joint exploration and mining ventures in Timor-Leste

Estrella Resources Limited (ASX:ESR) has signed a binding Memorandum of Understanding (MOU) with state-run Murak Rai Timor (MRT) to create a joint-venture partnership to explore for and potentially exploit mineral deposits in Timor-Leste. The MOU initiates the process whereby Estrella and MRT will create a joint-venture (JV) and will see MRT free-carried at 30% up to the public release of a Definitive Feasibility Study pertaining to Mining Concessions granted to Estrella by the Timor-Leste Government. This partnership marks Estrella's first-mover advantage in a developing country that is starting a new mineral industry. The joint-venture aims to actively seek new opportunities for mineral exploration within Timor-Leste, contributing to the economic diversification strategy of the nation. The next steps involve the creation of a JV company and shareholder agreement between Estrella's permanent branch office in Dili and MRT, establishing the framework of their working relationship going forward in Timor-Leste. Estrella looks forward to working with the Timor-Leste Government, MRT, the Autoridade Nacional Minerais (ANM), local communities, and with their Timor-Leste contacts to build a strong and successful minerals exploration and development sector.