Canada’s Anatolia Minerals Development and UK-based Rio Tinto Mining & Exploration have signed an extension of their strategic alliance in Turkey. Terms are similar to those in the previous agreement, with some revisions advantageous to both parties, stated a press release.
In April, 2000, Anatolia and Rio Tinto formed a four-year strategic alliance to seek base and
precious metal deposits in Turkey. The recent signing extends the alliance through year-end, 2007.
Under the new agreement, Rio Tinto will provide $500,000 per year for project generation exploration as well as $216,000 annually to offset Anatolia’s office expenses for chosen properties.
For each chosen property, Rio Tinto must spend at least $10 million, generate an order-of-magnitude study and pay Anatolia $1.5 million within six years in order to earn a two-thirds interest in a particular property.
Both sides also have an opportunity to recoup their investment in a property from future
cashflows, under certain conditions. Anatolia’s operatorship of the grassroots and initial three million dollars of earn-in programs was also reconfirmed, and minimum required expenditures were set at $300,000 for the first year and $500,000 for the four years following, during property earn-in.
To date, Rio Tinto has funded over nine million dollars for joint venture exploration. Rio Tinto is currently earning into four prospects in Turkey, each requiring expenditure of $10 million and payment of $1.5 million for a 66.67 percent interest. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
