Friday, 04 Nov 2011
African Barrick Gold has entered into an agreement with Liontown Resources Limited which allows Liontown the opportunity to explore for iron ore deposits on certain exploration tenements held the Barrick Gold in Tanzania.
The company said that the agreement allows for Liontown to earn an interest of up to 70% of the iron ore rights on c.530 square kilometers of land within the Masabi, Masabi Extension, Siga Hills and Siga Hills North exploration projects.
ABG will retain all rights to minerals discovered other than iron ore and by products directly associated with iron ore mineralogy. The initial 6 month data review period will be to assess the available technical data to determine whether there is potential for significant iron ore mineralization within the properties. At the end of this Stage, Liontown will be able to either define smaller Project Areas for further iron ore exploration or withdraw from the Agreement with ABG.
Following the Assessment Stage, Liontown can earn 60% equity in any iron ore discovery within the Project Areas by spending USD 10 million within 4 years on exploration and resource definition;
1. Liontown can at its election, increase its equity in the iron ore rights to 70% by spending an additional USD 10 million over a further 2 year period and
2. Liontown must spend US$500,000 during the Initial Earn In Stage before having right to withdraw from the Agreement with ABG.
This agreement provides ABG with the upside from potential iron ore mineralization on these exploration tenements while also ensuring under the agreement that Liontown samples and assays for gold, the rights for which are retained by ABG.
(Filed by Matsiko Mike SteelGuru Uganda correspondent)
African Barrick Gold has entered into an agreement with Liontown Resources Limited which allows Liontown the opportunity to explore for iron ore deposits on certain exploration tenements held the Barrick Gold in Tanzania.
The company said that the agreement allows for Liontown to earn an interest of up to 70% of the iron ore rights on c.530 square kilometers of land within the Masabi, Masabi Extension, Siga Hills and Siga Hills North exploration projects.
ABG will retain all rights to minerals discovered other than iron ore and by products directly associated with iron ore mineralogy. The initial 6 month data review period will be to assess the available technical data to determine whether there is potential for significant iron ore mineralization within the properties. At the end of this Stage, Liontown will be able to either define smaller Project Areas for further iron ore exploration or withdraw from the Agreement with ABG.
Following the Assessment Stage, Liontown can earn 60% equity in any iron ore discovery within the Project Areas by spending USD 10 million within 4 years on exploration and resource definition;
1. Liontown can at its election, increase its equity in the iron ore rights to 70% by spending an additional USD 10 million over a further 2 year period and
2. Liontown must spend US$500,000 during the Initial Earn In Stage before having right to withdraw from the Agreement with ABG.
This agreement provides ABG with the upside from potential iron ore mineralization on these exploration tenements while also ensuring under the agreement that Liontown samples and assays for gold, the rights for which are retained by ABG.
(Filed by Matsiko Mike SteelGuru Uganda correspondent)
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