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Xstrata Copper News Release: Xstrata Copper exercises option to acquire 62.5% of Tampakan Project in the Philippines
Brisbane, 21 December 2006
Xstrata Copper announces its decision to exercise its option to acquire 62.5% of the Tampakan copper-gold deposit in the Philippines from the project’s current owner, ASX-listed Indophil Resources NL (Indophil).
Indophil and Xstrata Copper will now work through a period of transition with completion of the exercise and management handover of the project to occur on 30 March 2007.
Xstrata Copper’s decision to exercise its options follows its 1 November 2006 announcement to sole fund further work that it considered necessary to determine whether or not to exercise its option. The decision to sole fund additional work was a result of the project’s increase in scale, complexity and potential viability. This decision followed Xstrata Copper’s receipt of the Indophil pre-feasibility study (PFS) report. The PFS was funded and managed by Indophil and its Philippines affiliate Sagittarius Mines Inc. and was completed in September 2006 following the completion of the required expenditure of AUD27 million by Indophil.
The Tampakan deposit represents one of the largest undeveloped copper-gold deposits in the South East Asia-western Pacific Region. The PFS confirmed that the Tampakan project is a two billion tonne resource containing 11.6 million tonnes of copper and 14.6 million ounces of gold at a 0.3% copper cut-off grade.
Xstrata Copper Chief Executive Charlie Sartain said the acquisition of 62.5% of the Tampakan deposit was an important step in the execution of the business unit’s growth strategy.
“Following the acquisition of Falconbridge in August this year, Xstrata Copper is now a major player in the global copper industry. The decision to exercise our option to acquire a 62.5% controlling interest in the Tampakan Project will further expand our position globally. Promising mineral resource estimates at the deposit indicate the project should become a new long life copper asset for Xstrata,” he said.
Ends
Xstrata contacts
Kirrily Kuc
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Email kkuc@xstratacopper.com.au
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Notes to editors
The Tampakan project is located on the southern Philippines island of Mindanao, approximately 65 kilometres north of General Santos City. The current project is situated on the tri-boundary of three Provinces – South Catabato, Sultan Kudarat and Davao Del Sur. The Tampakan copper-gold deposit is located in the Province of South Cotabato, Municipality of Tampakan. Most of the project area covers generally accentuated topography with the Tampakan deposit located on a NNE trending ridge at an elevation varying from 1000-1300 metres a.s.l.
The final beneficial ownership interest in the project is A class shareholders; Xstrata 62.5% and Indophil Resources NL 32.5% and Alson’s Corporation 5% and B class shareholders with limited voting and capped dividend rights Tampakan Mining Corporation and Southcot Mining Corporation (The Tampakan Group of Companies).