Canada-based Mindoro Resources Ltd., through its Philippine subsidiary MRL Gold Phils, Inc., is expected to invest at least P3.5 million to explore for gold, copper and other associated mineral deposits in Batangas following the approval by the Department of Environment and Natural Resources (DENR) of the exploration permit of Egerton Gold Philippines.
Mindoro Resources acquired last Dec. 15 majority control of the Batangas projects of Egerton.
Mindoro Resources, which is listed both in the Toronto and Frankfurt Stock Exchanges, engages in the acquisition, exploration, and development of mineral properties in the Asia-Pacific region.
It has ongoing explorations for gold, copper, and nickel properties in Batangas and Surigao in the Philippines.
The company is headquartered in Edmonton, Canada.
The approved EP of Egerton covers an area of 872.6406 hectares located in Batangas City and Lobo, Batangas.
Under its approved EP, Egerton will pursue a two-year exploration work program to delineate mineable gold, copper and other associated mineral deposits in the area.
The budget requirement for the exploration activities is P3.2 million plus P320,000 for a counterpart environmental work program.
Mindoro Resources announced last Dec. 15 that it had executed the formal agreements with Egerton Gold Philippines Inc. whereby Mindoro may acquire the remaining 49 percent direct and indirect interest in the Batangas projects.
Basic terms of the acquisition were disclosed on July 2, 2008.
Under the original October 2000 agreement with Egerton, Mindoro had earned a 51 percent direct and indirect interest in the Batangas projects and had the right to acquire an additional 24 percent indirect interest by taking any one deposit to feasibility and issuing 500,000 common shares to Egerton or its assignees.
Egerton has agreed to waive the feasibility requirement and Mindoro has issued the requisite 500,000 common shares, bringing Mindoro’s total direct and indirect interest to 75 percent.
Mindoro acquired the remaining 25 percent indirect interest in the Batangas projects through the acquisition of 100 percent direct and indirect ownership of Egerton and is now required to issue an additional 7,500,000 common shares to Egerton. These shares are subject to a hold period with 1,500,000 shares restricted from trading for six months, two million shares restricted for 12 months, two million restricted for 18 months and two million restricted for 24 months.
Egerton is also entitled to receive a one time payment of $1 millioin at the start of production – applicable to the first deposit to start production only, and will be granted a one per cent net smelter royalty on all metals produced from the Batangas projects.
All share issues are subject to regulatory approval.
The finalization of the Batangas acquisition clears the way for joint venture arrangements with two international gold producers.
Last Sept. 3, Mindoro reported that a non-binding letter agreement had 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 percent interest in each of Mindoro’s El Paso, Lobo and Talahib porphyry copper-gold projects located in the Batangas.
Gold Fields was granted a 90 day period within which to conduct further due diligence.
Gold Fields has advised that the due diligence is proceeding satisfactorily.
Preparation of a formal agreement is well-advanced and program planning has commenced.