Business
Ballek Joint Venture with Agricola Resources plc
Ballek Joint Venture with Agricola Resources plc.
About this update from Beowulf Mining Plc
[{"type":"text","content":"\n \n Beowulf Mining PLC \n\n Extension to agreement \n\nBeowulf Mining PLC (AIM: BEM ; Aktietorget: BEO) (\"the Company\"), the AIM and\nAktietorget - traded mineral exploration company with several projects in\nSweden announces that it has extended the option and earn-in agreement\nrequiring Plus-quoted Agricola Resources PLC (PLUS:AGRI) to complete 3,200m of\ndiamond drilling and a geophysical survey on the Ballek copper-gold-uranium\nexploration permits from 30 June 2009 to 31 March 2010.\n\nAgricola has brought the Lulepotten copper-gold deposit at the Ballek joint\nventure to a maiden JORC-compliant Inferred Resource stage showing 5.4m tonnes\nat 0.8% copper and 0.3 g/t of gold.\n\nClive Sinclair-Poulton, Chairman of Beowulf said, \"Given the difficult market\nconditions at present in the exploration industry we have agreed to extend the\ndate by which Agricola must complete its work programme. We have built a good\nrelationship with Agricola and want to continue to develop this.\"\n\nThe option and earn-in agreement covers the Ballek 2, 3, 4 and 5 exploration\npermits that cover 110 square kilometres of Arjeplog County of Northern Sweden.\n\nAgricola Resources plc can earn up to 70% interest in the Ballek joint venture\nby completing an agreed work programme of drilling by 31 March 2010, and\nincurring a further US$500,000 exploration expenditure on the JV.\n\nThe surveys are intended to identify targets associated with the gravity\nanomaly under the claim block, and to identify any iron oxide copper gold\n(IOCG) deposits that may be present in the Ballek area.\n\nSubsequent expenditure on the Ballek exploration permits will be made pro rata\nto Beowulf and Agricola's respective interests, subject to adjustment in the\nevent that one party chooses not to fund their proportion of such expenditure.\n\nThis agreement enables Beowulf to advance its projects at lower cost in order\nto retain more of its cash resources.\n\nAgricola's shares are traded on the PLUS Market and it is a related party to\nBeowulf under the AIM Rules since R Young, J O Larsson and A C R Scutt, who are\ndirectors of Beowulf are also directors of Agricola. Since the above agreement\nconstitutes a related party transaction for the purposes of the AIM Rules, the\nIndependent Directors of Beowulf - Ed Taylor and Clive Sinclair Poulton\nconsider, having con...