Business
P. Joint Venture Agreement
P. Joint Venture Agreement.
About this update from Tertiary Minerals Plc
[{"type":"text","content":"\n Tertiary Minerals PLC\n06 September 2007\n\n\n Tertiary Minerals plc\n\n6 September 2007\n\n JOINT VENTURE AGREEMENT SIGNED WITH INMET MINING CORPORATION ON VAHAJOKI\n COPPER-GOLD PROJECT, FINLAND\n\n • Inmet Must Spend €I Million Over 39 Months To Earn 75% Interest\n\n • IOCG Target Identified by earlier Tertiary Regional Programme\n\n • Immediate Start To Exploration Work At Vahajoki\n___________________________________________________________________\n\nTertiary Minerals plc ('Tertiary' or 'the Company') is pleased to announce that\nit has signed an earn-in/joint venture agreement with Inmet Mining Corporation\n('Inmet') regarding Tertiary's Vahajoki copper-gold project in the western\nLapland region of Finland.\n\nInmet is a mid-tier TSX-listed Canadian mining company which owns and operates a\nnumber of base metal and gold mines in Turkey, Canada and Europe including the\nPyhasalmi copper-zinc mine in Finland. In 2006 Pyhasalmi produced 15,000\ntonnes of copper, 35,700 tonnes of zinc and over 500,000 tonnes of pyrite.\n\nUnder the terms of the agreement an Inmet Mining Corporation subsidiary, \nPyhasalmi Mine Oy ('Pyhasalmi') will be entitled to earn a 75% interest in \nthree mineral claims held by Tertiary Minerals at Vyhajoki by sole funding\nexploration costs totalling €1,000,000 before 31 December 2010 (including\n€150,000 before 31 December 2008 and €500,000 before 31 December 2009). Once\nthis total expenditure has been met Tertiary may elect to contribute its 25% of\nfurther expenditure in joint venture with Inmet or convert its interest to a\n2.5% Net Smelter Return royalty.\n\nTertiary's Vahajoki project comprises three claims and is one of a number of\nprojects generated from a regional Iron-Oxide-Copper-Gold ('IOCG') exploration\nprogramme in northern Finland and Sweden which started in late 2002. Iron\nmineralisation was first discovered at Vahajoki in 1938 and drilled by three\ndifferent companies between 1943 and 1982. Numerous discrete iron-oxide\n(magnetite)-breccia replacement deposits occur in a 1.5km x 3.5km area\nassociated with a N-S shear zone cutting metasediments and volcanics of the\nPerapohja schist belt. Whilst previously considered uneconomic as a stand\nalone iron resource, several drill intersections reported by earlier explorers\ndemonstrate a clear association of copper and g...