ANTOFAGASTA HOLDINGS PLC
7 October 1999
ANTOFAGASTA GROUP TO EXPLORE MAGISTRAL COPPER PROJECT IN PERU
Antofagasta Holdings P.L.C., the Chilean mining group, announced today that
its wholly owned subsidiary, Anaconda Chile S.A. has entered into an option
agreement with Inca Pacific Resources Inc., the Vancouver listed mining
company. The agreement enables Anaconda to earn a 51% joint venture
interest in the Magistral copper skarn prospect in Central Peru, by
completing a defined exploration programme for a total cost of
US$5.75 million over a three year period. The agreement is conditional
on the approval of Minero Peru, the Peruvian State mining company and
the Vancouver Stock Exchange.
In addition, once Anaconda has earned its 51% interest it has an option to
increase its interest in Magistral to 65% on preparation of a bankable
feasibility study within two years. The agreement also gives Anaconda the
right to earn an initial 30% interest in Magistral once it has incurred the
US$2.1 million of exploration expenditure and certain other conditions have
been satisfied. This 30% interest may be repurchased by Inca Pacific at a
price established by independent appraisers if Anaconda terminates the
agreements before earning its 51% interest in the project.
Anaconda will be the operator of the Magistral Project which is located
120 km north-west of the Antamina project, one of the largest copper/zinc
development projects in the world.
Enquiries to: Ramon Jara, Hussein Barma.
Tel : +(44) 171 374 8091