Manila Mining, Anglo in $20M exploration deal

Listed firm Manila Mining Corp. on Monday said it has signed an agreement granting Anglo Investments BV., a subsidiary of Anglo American Plc, the right to explore for potential development the Kalayaan area, covering about 284.76 hectares, in Surigao del Norte. In a statement submitted to the Philippine Stock Exchange, Manila Mining said that the under the agreement, Anglo will shoulder the minimum estimated cost, $20 million, of the project's pre-feasibility phase. The phase will stretch over a period of two to three years. Anglo will then be getting a 40 percent interest in Kalayaan Copper Gold Resources Inc., the firm which will control the project area. "Part of the $20 million expenditure is by way of a $7 million deposit to be remitted by Anglo to Manila Mining today. "The $7 million deposit will constitute Anglo's initial entry cost into the Kalayaan Project and the payment to Manila Mining will take effect upon Anglo's commencement of the program in the Kalayaan project," the company said. Manila Mining added that if it and Anglo decide to undertake a final feasibility phase of the Kalayaan project, Anglo will also solely fund the estimated $15 million to $20 million to earn an additional 20-percent in KCGRI.-Cheryl Arcibal, GMANews.TV