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Prosperity Resources Nets A$2m From Key Asian Investor To Progress Indonesian Copper, Gold Project

Prosperity Resources' (ASX: PSP) has raised A$2 million through a placement to a key Asian investor to support ongoing exploration at its 410 square kilometre porphyry gold-copper project in Aceh Province, Indonesia.

Prosperity issued the Asian investor 20 million shares at $0.10 each, a 43% premium to its current share price of $0.07.

The company's 81%-owned Indonesian subsidiary PT Prosperity Surya Persada recently acquired an 80% equity interest in two key gold-copper licences in the region.

The subsidiary earned 80% of the PT Bintang Agung Mining licence by spending more than US$1.25 million (A$1.2 million) on the highly prospective Pelumat gold-copper porphyry target since October 2009.

In mid-March Prosperity announced it had intersected copper-molybdenum mineralisation in the first hole drilled on the Pelumat Prospect - the sixth goldā€copper anomalous magnetic target defined at the Aceh Project.

Indicating the highly prospective nature of the Pelumat Prospect, rock chip samples ranging up to 109 grams per tonne (g/t) gold, 37% copper and 490g/t silver have been returned previously.

The recent drilling results are important as they are improving Prosperity's understanding of the physical attributes of the targets at Aceh.

The Pelumat Prospect is one of 10 known magnetic skarn and intrusive targets along 60 kilometres of strike length at the 410 square kilometre Aceh Project.

PT Prosperity Surya Persada earned its initial interest in the licence in November 2010.

Meanwhile, the second exploration licence, PT Mulia Kencana Makmur is located within the same geological belt as the PT Bintang Agung Mining licence, immediately to the south.

The PT Mulia Kencana Makmur licence hosts the highly prospective Mutiara gold-copper porphyry target.

PT Prosperity Surya Persada moved to 51% ownership of the second licence in June 2010.