Adelaide, Mar 16, 2006 AEST (ABN Newswire) - Australian listed explorer, Rusina Mining NL (ASX: RML) has taken greater control over its Acoje platinum and nickel sulphide project in the Phillipines.
The move follows a review of the project and conditions precedent ordered by Rusina's new management team installed late last year, including new Managing Director, Mr Robert Gregory and new Chief Financial Officer, Mr Julian Tambyrajah.
As a result of the review outcomes - which has already seen the new management team successfully list Rusina in December on London's AIM markets - Rusina has acted to regain full ownership of the one of the project's key assets, its Government-endorsed Mineral Production Sharing Agreement (MPSA).
"An immediate benefit is that it will allow project promoters, under Philippine law, to now attract strategic foreign and Philippine partners to invest in the mine's exploration and development stages, for both its platinum and nickel prospects, and its chromite and nickel laterite potential," Mr Gregory said today.
Under the restructure announced today:
- Rusina has entered into a letter agreement with CRAU Mining Corporation, the legal holders of the Acoje Mineral Production Sharing Agreement (MPSA)
- The agreement gives Rusina the option to purchase 100% of the MPSA from CRAU and vend into a soon to be created legal Philippine entity to be held by Rusina (90%) and CRAU (10%).
Previously, Rusina had the rights to explore, mine and operate the Acoje MPSA via an Operating Agreement between CRAU and Kinloch Resources Limited, currently an 80% subsidiary of Rusina, with the remaining 20% in Kinloch held by Malaysian-based New Frontier Investment Limited.
"The Operating Agreement was at the time of acquisition, the only asset of Kinloch but under the review, we have now received legal advice that the Operating Agreement is void under the Philippine Constitution due to Kinloch being a 100% foreign entity," Mr Gregory said.
"As a result, the Company is considering its legal rights and remedies under its original acquisition agreements, specifically the Share Sale Agreement and the Shareholders Deed between Rusina, New Frontier and Kinloch.
"In order to protect Rusina's investment in the Acoje project, Directors of Rusina will deal directly with CRAU, as the legal holders of the Acoje MPSA.
"The MPSA is unaffected as it is held by CRAU and exploration activities on the property also remain unaffected as Rusina has the rights to continue to explore on the property by virtue of the letter agreement.
"It also allows CRAU to retain a 10% ownership in the new entity with free carry provisions," Mr Gregory said.
"There is scope as well for the MPSA to be converted in the future to a Financial & Technical Assistance Agreement (FTAA) should the project reach a certain size and as may be allowed under Philippine Law.
"A FTAA is able to be 100% foreign owned, providing an opportunity for CRAU's 10% interest to be purchased by Rusina at a fair value if we should wish to do so."
Mr Gregory said the Acoje mine, in the Zambales Province on the island of Luzon in the Philippines, had operated for 70 years as one of the world's largest metallurgical chromite suppliers, mining over 10 million tonnes of ore.
"Mining ceased in 1991 due to high operating costs and low chromite prices rather than reserve depletion," Mr Gregory said.
"Metallurgic grade chromite is currently highly sought, and Rusina Directors see this as a unique opportunity to quickly develop an operating cash flow for the benefit of shareholders."
Contact
Robert Gregory
Managing Director
Rusina Mining NL
TEL: +61 8 9226 1111
Julian Tambyrajah
CFO & Finance Director
Rusina Mining NL
TEL: +61 8 9226 1111
Kevin Skinner
Senior Consultant
FIELD PUBLIC RELATIONS
231 South Road
MILE END SA 5031
Tel: (08) 8234 9555
Fax: (08) 8234 9566
Mob: 0414 822 631
kevin@fieldpr.com.au
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