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MANILA
Mining Corp. (MMC) Monday signed a farm-in agreement
with Anglo Investments BV for the initial exploration of
a copper and gold potential in Surigao del Norte in
southern
Philippines.
Under
the agreement, Anglo will have to spend $20 million for
the prefeasibility phase of the Kalayaan Project to be
done over a period of two to three years. The investment
that would be poured in by the foreign company would
earn them an initial 40-percent interest in the project.
According to a disclosure Manila Mining submitted to the
stock exchange, Anglo has already deposited $7 million,
which represents its initial entry cost into Kalayaan.
“The payment to MMC will take effect upon Anglo’s
commencement of the program in the Kalayaan area,”
Manila Mining said in its report.
Anglo
and MMC could consider doing a final feasibility phase
of the Kalayaan Project based on results of the
exploration program and the Anglo prefeasibility study.
Anglo
could also finance the additional work, estimated at $15
million to $20 million, which would earn them another
20-percent stake in the project.
The same
farm-in agreement incorporates the formation of joint
venture company Kalayaan Copper-Gold Resources Inc. into
which the project and exploration property would be
assigned.
The
project covers an area of about 284.76 hectares out of a
total of 2,462.9 under MMC’s renewed exploration permit
no. XIII-014 dated January 26, 2007.
MMC is
an affiliate of listed Lepanto Consolidated Mining Co.
Anglo, meanwhile, is a wholly owned unit of Anglo
American Plc., one of the world’s leading mining
companies and a significant copper and gold producer. |
