www.metalsexploration.com
Metals Exploration is a natural resources exploration and development company operating in the Pacific Rim, with particular focus on the Philippines.
The Company’s principle asset is the Runruno gold-molybdenum project on the island of Luzon in the northern Philippines. The Company acquired the project in February 2005 and holds an 85% interest with an exclusive option over the remaining 15%.
Metals Exploration takes full control of flagship Runruno gold-molybdenum project
Metals Exploration (LON:MTL) has taken its holding in the flagship Runruno gold-molybdenum project in the Philippines from 85 percent to 100 per cent, after exercising its option agreement with Christian Mining Inc.
The acquisition cost what it called a “modest” US$44.44 per reserve ounce of gold acquired - 135,000ozs - for a total of US$6 million.
Early site construction works have commenced with earth works initiated on the processing plant pad, the group said in a statement.
Metals Exploration has issued a letter of intent to Leighton Contractors Asia regarding an engineering, construction and procurement contract to design and build the Runruno processing plant.
Chairman Ian Holzberger said: "The acquisition of the interest in the Runruno gold project that the company did not own for a modest US$44.44 per reserve ounce of gold, by the exercise of our pre-existing option agreement with Christian Mining, is very satisfying. It must be considered to offer a significant value add for the company.
"It is equally satisfying that since the company secured the Declaration of Mining Project Feasibility (at the end of October), it has been able to take tangible steps towards the ultimate full development of the Runruno project.”
The issue of a LOI to Leighton, the initiation of early site works and the commencement of detailed design activities, whilst a debt package to fund the full development is being finalised, will shorten the construction timetable and add value, he added.
Runruno, when it is up and running in the next two years, will produce an average 96,700 ounces of gold a year for more than 10 years, according to the 2010 feasibility study.
When the company announced receipt of the key approval for the project’s feasibility study, it said discussions were proceeding well with number of resource banks and “alternative funding sources” involved in negotiations and due diligence.
Leighton Contractors Asia had made a guaranteed maximum price offer of US$95.1 million to build the Runruno process plant – which is still the basis for the abovementioned LOI.
