Wednesday, September 03, 2008
Mindoro And Gold Fields Sign Letter Of Agreement On Three Batangas Projects
EDMONTON, Alberta; September 03, 2008 - Mindoro Resources Ltd. (TSXV: MIO; Frankfurt: WKN 906167) is pleased to report that a non binding letter agreement (the "Agreement") has been signed with a member of the Gold Fields group of companies, establishing the basic commercial framework whereby Gold Fields may earn up to a 75% interest in each of Mindoro's El Paso, Lobo and Talahib porphyry copper-gold projects located in the Batangas Province of southern Luzon, the Philippines, as shown on the accompanying map.
Click to EnlargeMindoro has granted Gold Fields a 90 day period within which to conduct further due diligence. It is expected that a formal agreement will be concluded during this period. During this period, Mindoro has granted Gold Field exclusivity in relation to participation in these projects. In brief, Gold Fields may earn up to a 75% interest in each of the three projects by sole funding exploration and a feasibility study on each project, subject to certain expenditure limits as described below. Mindoro will retain a 25 percent interest at a production decision. Gold Fields will manage each project whilst it is farming into each project. Additional earn-in terms are described in the section below entitled "About the Agreement".
Tony Climie, CEO of Mindoro commented; "This agreement represents an important part of Mindoro's strategy going forward, which is to accelerate and re-emphasize the advancement of the copper-gold projects on our target-rich land packages, at the same time as we advance our Surigao nickel laterite resources towards an integrated mining and processing operation. We welcome this agreement with a company of Gold Fields stature, and see it as an endorsement of the potential of our Batangas projects".
ABOUT THE AGREEMENT1st Phase
- Gold Fields may earn a 51% interest in the El Paso project and the Lobo project by spending $AU4,000,000 on the relevant project within 60 months of the farmin period formally commencing.
- In relation to the Talahib project Gold Fields may attain a 51% interest by spending $AU2,000,000 for the Talahib project.
- To earn a 51% Gold Fields must maintain a minimum annual expenditure commitment of $AU350,000 per project.
2nd Phase - feasibility
- After completing the first phase, Gold Fields may elect to continue sole funding expenditure in relation to the relevant project.
- In doing so, Gold Fields may earn a further 24% interest in the relevant project by completing a feasibility study or contributing a milestone amount of expenditure.
- The milestone amount, for the El Paso project and the Lobo projects, is $AU16,000,000 and is $AU12,000,000 for the Talahib project .. For the sake of clarity, these milestone amounts are in addition to the expenditure contributed in the first phase.
ABOUT GOLD FIELDSGold Fields Limited is one of the world's largest un-hedged producers of gold, providing investors with maximum leverage to the gold price. Gold Fields has attributable production of approximately 4.0 million ounces per annum, mineral reserves of 83 million ounces and mineral resources of 251 million ounces. The Group employs some 50,000 permanent employees across its operations and is listed on the JSE Limited South Africa (primary listing), the New York Stock Exchange (NYSE) as well as the Dubai International Financial Exchange (DIFX). Gold Field's project generation focuses on high-quality exploration targets in emerging belts/camps worldwide based on three selected deposit types, namely: Au-Cu porphyries, high sulphidation epithermal systems and sediment-hosted orogenic gold deposits. The objective is to develop a pipeline of early stage discoveries that have the potential to develop into world-class gold mines.
ABOUT MINDOROMindoro is a Tier 1 Issuer trading on the TSX Venture Exchange (MIO) and the Frankfurt Stock Exchange (WKN 906167). Mindoro is focused on building shareholder value through diverse resource exploration in the Philippines and by advancing early stage opportunities to production or joint venture. In keeping with this multi-commodity strategy, Mindoro has announced an initial NI 43-101 compliant nickel-iron-cobalt resource estimate on its Agata North project, where resource expansion drilling is on-going with five rigs, as well as an initial NI 43-101 compliant gold-silver resource on its Kay Tanda project. Mindoro has also identified 22 porphyry copper-gold prospects and is involved in further advanced joint venture discussions. Mindoro is well-financed, with an experienced team of exploration and mining professionals, and has plans for multiple drill programs in late 2008 - early 2009.
For further information, contact:
INVESTOR RELATIONS -- CANADA
Mindoro Resources Ltd.Penny Gould, President:
penny@mindoro.comTel: 780.413.8187
Toll Free: 1.877.413.8187
www.mindoro.comRenmark Financial Communications Inc.Barbara Komorowski:
bkomorowski@renmarkfinancial.com Jason Roy:
jroy@renmarkfinancial.com Tel: 514.939.3989
Fax: 514.939.3717
www.renmarkfinancial.com INVESTOR RELATIONS -- EUROPE
ARGENTUMINVEST GmbHRichard H. Mayr:
info@argentuminvest.comTel: +49.9421.568899-0
Fax: +49.9421.568899-4
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
This release may contain forward-looking statements including management's assessments of future plans and operations, and expectations of future production. These statements are based on current expectations that involve a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated. These risks include, but are not limited to, the risks associated with the mining and exploration industry (e.g. operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production). The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.
You can also view this News Release on our website at:
http://www.mindoro.com/s/PressReleases.asp?ReportID=317647
