Business
MasapelidJointVenture-Amend
MasapelidJointVenture-Amend.
About this update from Metals Exploration Plc
[{"type":"text","content":"\n Metals Exploration PLC\n25 January 2006\n\n The following replaces the Metals Exploration PLC announcement released today\n under RNS 3935X\n\nAs previously announced by MTL on 23 December 2004, an agreement was signed with\nSan Manuel Mining Corporation ('SMMC') allowing MTL to earn a 70% interest in\nthe Masapelid Project. This interest, which is now to be divided between MTL and\nMedusa Group in accordance with the JVA, has been increased to 100% (the '\nInterest').\n\n\n\n METALS EXPLORATION PLC\n\n\n\n MASAPELID PROJECT - JOINT VENTURE\n\n25 January 2005\n\nThe board of Metals Exploration PLC ('MTL') is pleased to announce that it has\nsigned a Joint Venture Agreement ('JVA') with Medusa Mining Limited ('Medusa')\nand Philsaga Mining Corporation ('Philsaga') (together the 'Medusa Group') over\nthe former Lacandola gold mine on Masapelid Island, which is covered by Mineral\nProduction Sharing Agreement 004-91-XIII (the 'Masapelid Project').\n\nAs previously announced by MTL on 23 December 2004, an agreement was signed with\nSan Manuel Mining Corporation ('SMMC') allowing MTL to earn a 70% interest in\nthe Masapelid Project. This interest, which is now to be divided between MTL and\nMedusa Group in accordance with the JVA, has been increased to 100% (the '\nInterest').\n\nMedusa is a company listed on the Australian Stock Exchange ('ASX: MML') and, in\nconjunction with Philsaga, is processing ore at its Co-O plant, which is being\nsupplied by Philsaga from the Co-O gold mine in Agusan del Sur, approximately\n240 kilometres to the south-south-west of Masapelid Island.\n\nIn summary the principal terms of the JVA are:\n\n• the Medusa Group has the right to earn an 84% share of the Interest,\n with MTL retaining a 16% share of the Interest or alternatively \n retaining a 10% Net Profit Interest ('NPI') from Medusa in any mining \n operation;\n\n• the Medusa Group is to expend the first US$1million on the Masapelid\n Project and is to partly fund MTL's remaining acquisition cost of the \n Interest;\n\n• the Medusa Group is to operate the Masapelid Project;\n\n• the remaining shares and cash consideration to acquire the Interest\n will be shared 84% by Medusa and 16% by MTL with the following \n payments to be made:\n\n (i) on or before 27 February 2006, proportionate payments to a total of \n US$25,000 cash and the iss...