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Market:	ASX
Sector:	General Mining
EPIC:	LML
Latest Price:	0.12 (0.00%)
52-week High:	0.19
52-week Low:	0.08
Market Cap:	15.34M

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Lincoln Minerals

Lincoln Minerals (ASX: LML) is an Australian company with a portfolio of uranium, iron ore, base metal (lead-zinc-copper-nickel-silver), gold and iron oxide copper-gold-uranium exploration projects in the Gawler Craton, South Australia.

Lincoln Minerals proposes 100% ownership of the Gum Flat Iron Ore project, SA

Friday, March 12, 2010

Lincoln Minerals (ASX: LML) is proposing to buy back all of the 40% interest in the Gum Flat Iron Ore Project that it does not already own.

The 40% stake is currently held by Indian iron ore miner, Mineral Enterprises Limited (MEL) and MEL subsidiary, Mineral Enterprises Australia Pty Ltd (MEA).

Lincoln and Mineral Enterprises have signed a Contract for Sale of Joint Venture Interest under which, subject to finance, Lincoln will re-acquire the 40% interest in the Gum Flat Iron Ore Project on Exploration Licence EL 3422. The project is located on southern Eyre Peninsula in South Australia.

Consideration for the transfer is $5.7 million with a settlement date of 30 April 2010.

LML entered into a joint venture agreement with MEL and MEA in December 2007 and since that date MEA has earned a 40% participating interest in EL 3422 by spending in excess of $2.5 million on exploration expenditure.

However, MEL is developing a number of projects in India including a hematite beneficiation plant and a deep sea port so have agreed to sell their interest in Gum Flat to help fund those projects.

During the period of the joint venture, MEA funded air core, diamond core and reverse circulation drilling programs that led to the definition of a 55 Mt magnetite iron ore inferred resource and a 0.6 Mt hematite DSO inferred resource within a 125 Mt to 210 Mt iron ore exploration target.

The company said MEL's contribution in taking a greenfields iron ore prospect in 2007 to an inferred resource in April 2009 has been greatly valued.

In conjunction with this contract, LML is negotiating with several interested parties, including Chinese steel and iron ore mining companies, to provide finance through potential investment and offtake agreements for the project.

The company said the potential resumption of full ownership by Lincoln of the Company’s flagship Gum Flat iron ore project on successful completion of the proposed finance and Indian sale contracts as announced today, will enable Lincoln to maximise the potential development of its Gum Flat iron ore resources for the benefit of its shareholders.

The transactions outlined today are in addition to Lincoln earlier this year retaining 100% ownership of its other major Eyre Peninsula iron ore project - at Wilcherry (Hercules South) in the Peninsula’s northern sector.

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