By Dorothy Kosich, Mineweb.com
As Gold Fields announced this week it would invest $120 million to determine if the company should acquire a 60% interest in the Far Southeast gold-copper deposit, Gold Fields CEO Nick Holland noted "the Philippines are definitely opening up" to major mining companies.
In a speech to the Denver Gold Forum Wednesday, Holland called Far Southeast deposit, "the most significant gold-copper porphyry in the world."
"The Philippines are definitely opening up" to major mining companies, Holland noted.
"Mining has already been blessed and sanctioned" on the island of Luzon, where the project is located, he explained.
In a disclosure to the Philippine Stock Exchange, Lepanto Chairman Felipe Yap said the company's board of directors had approved the execution of an Option and Shareholders Agreement with Gold Fields Switzerland Holding, a subsidiary of Gold Fields Ltd. The agreement grants an 18-month option to Gold Fields to acquire a 60% interest in the Far Southeast (FSE) deposit.
During that time, Gold Fields will conduct a major drilling program as part of a feasibility study on the deposit. The South African miner is required to pay US$10 million in option fee to Lepanto; and $44 million as a non-refundable down-payment to private holding company Liberty Express Assets upon signing of the option agreements.
After 12 months, if Gold Fields decides to acquire a 60% interest in FSE, the acquisition price will be US$340 million.
Holland told the Denver Gold Forum audience of analysts, investment funds, and mining professionals that a 43-101 study on the project is expected to be completed with the next two or three months.
LSE is located within an existing mining camp and is in close proximity to two other mines historically operated by Lepanto, one of which is currently in production.