Mindoro Resources has signed two option agreements to acquire an additional 25% interest in the Agata project and an option to acquire an additional 25% interest in the Tapian San Francisco project, from its Philippine partner Minimax Mineral Exploration Corp. These projects are within the Surigao mining region on the island of Mindanao.
Upon exercise of all options, Mindoro will hold a 40% direct and indirect interest in the Agata project and 100% direct and indirect interest in the Tapian San Francisco project.
The terms of two 2005 option agreements with Minimax were based on gold and copper production scenarios. In September 2013 an option to acquire the remaining 25% economic interest in the Agata project was renegotiated to be more applicable to the economic scenario of high-iron direct shipping ore (DSO) operations and nickel processing. The terms of the two new option agreements for the additional Agata interest replace the option terms announced in September 2013.
In October 2012, Mindoro, Minimax and TVI Resource Development Phils (TVIRD), an affiliate of TVI Pacific, signed two joint venture agreements relating to the Agata project, whereby TVIRD may earn up to a 60% interest from Mindoro in each of the Agata Mining and Agata Processing Joint Ventures, while Mindoro would retain 15% and the remaining 25% would continue to be held by Minimax. Under the amended option agreements, Mindoro may purchase Minimax’s 25% interest in each of the Agata Mining and Agata Processing Joint Ventures.
Mindoro is also pleased to announce that an offtake agreement has been signed by the Agata joint venture to sell 1 million tonnes of high-iron/low-nickel DSO material between September 2014 and September 2015. Advance payments of US$2 million have been received by the joint venture, which will be used to fund initial operating costs. The first shipment of DSO material is expected to occur before the end of the third quarter. www.mindoro.com