Reliance Resources on Friday issued an update in relation to the recently announced Indonesian Government Regulation No. 24 of 2012, regarding foreign ownership of mining projects after its share price took an 11% knock .
Vancouver based Reliance said in a statement that "the Indonesian press is giving focus to certain foreign owned mining enterprises that do not have any direct Indonesian ownership, which is not the case with Reliance."
Reliance says its three Sulawesi and two Halmahera projects are already compliant with divestiture requirements under Mining Law 4/2009 and it does not expect to have to undertake any further stake sales under the new regulations.
Local partners currently own between 10% and 25% of the Indonesian incorporated subsidiaries that hold the Reliance tenements, the company said.
Reliance is a micro-cap explorer worth $22.4 million in Toronto and trading at 19.5c, down from a 52-week high of 92c.