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By Likha C. Cuevas, Reporter
MANILA Mining Corp. (MMC)
announced on Friday that it would proceed with preliminary work on a
mine site in Surigao after completing the documentation for the
joint-venture project.
In a disclosure to the Philippine
Stock Exchange, the company said its unit, Kalayaan Copper-Gold
Resources Inc. (KCGRI), has executed all agreements with its
joint-venture partner Anglo Investments BV.
Anglo Investments BV is a wholly
owned unit of Anglo American Plc, which is a significant copper and
gold producer.
Among the completed documentation
includes the shareholders’ agreement and the technical services
and operating agreement.
In addition, MMC has assigned to
KCGRI about 284 hectares—the total area of the Kalayaan
project—out of the total 2,463 hectares under the renewed
exploration permit XIII-014. The area covered by the project has
potential copper-gold porphyry deposits as shown by known
“occurrences” in nearby areas.
With the completion of the
documentation, MMC said the prefeasibility study and final
feasibility study, if needed, may begin.
Anglo Investments would shell out
$20 million for the project’s prefeasibility phase that would last
two to three years. This investment would earn Anglo an initial
40-percent interest in the Kalayaan project.
Of the $20 million, $7
million is supposed to be deposited Monday and this would serve as
Anglo Investments’ initial entry cost into the project. The
payment to MMC will take effect upon Anglo Investments’
commencement of the program in the Kalayaan area.
Anglo Investments would shoulder
the cost of the final study, which is estimated at $15 to $20
million, allowing the company to earn an additional 20-percent
interest in the project.
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