Intercept Says Rio Tinto In Farm-In Deal On Bauxite Project
November 24 2011 - 11:21PM
Dow Jones News
Rio Tinto PLC (RIO) has agreed to buy its way into a bauxite
project on Melville Island, north of Darwin, junior exploration
company Intercept Minerals Ltd. (IZM.AU) said Friday.
Rio will pay 50,000 Australian dollars (US$48,480) when a formal
agreement is signed and then A$5 million over four years to earn a
75% interest in the project, Intercept said in a statement.
"They [Rio] have the technical and financial resources to
progress the project and a proven track record in negotiating
access to aboriginal land," said Sam Randazzo, chairman of
Intercept, adding the deal would also allow his company to remain
focused on its Ianna gold project in northwest Guyana.
The agreement with Rio is subject to several conditions,
including Intercept receiving an exploration license for the 1,431
square-kilometer tenement.
Australia is the world's largest producer of bauxite, from which
alumina and aluminum are produced.
-By Robb M. Stewart, Dow Jones Newswires; +61 3 9292 2094;
robb.stewart@dowjones.com
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