10 April 2004 01:23
Peter Hambro Mining licensed to develop Chagoyansk gold property
MOSCOW. March 24 (Interfax) - Peter Hambro Mining Group won a March 18 auction in Blagoveschensk for a license to
explore and develop the Chagoyansk gold property in the Amur region, the British company said in a news release.
If the agreement progresses as planned, Rio Tinto will finance the
first $1.5 million of exploration works and obtain a 51%-stake in the
Peter Hambro Mining also said it signed an agreement of intent to form a joint venture to explore and develop the
property with the UK/Australian major Rio Tinto. The parties had already agreed in principle on the terms for forming
the joint venture.
proposed joint venture.
"Thereafter, Peter Hambro Mining and Rio Tinto will either share project costs on a pro-rata basis, or Peter
Hambro Mining can elect not to contribute to further exploration costs," the press release said. In that case,
"Rio Tinto will finance the next $3.5 million of exploration expenditure, subject to encouraging results, to
increase its interest in the joint venture to 65%."
Peter Hambro Mining is the main shareholder in Pokrovsky Rudnik, the Amur region's biggest gold producer.
[Interfax] |
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