Last checked at 25 Jun 2008 15:00
BEOWULF MINING PLC PRESS RELEASE BALLEK JOINT VENTURE WITH AGRICOLA RESOURCES CHANGE IN TERMS
25 June 2008. Beowulf Mining PLC ("Beowulf") (AIM:BEM) has signed a Deed of Variation to the terms of Joint Venture with Agricola Resources PLC ("Agricola"). Agricola will no longer be required to complete a magneto telluric geophysical survey on the Ballek licences owned by Beowulf , instead it will be required to complete an extra 200 meters of diamond drilling. Agricola has completed the required induced polarisation and ground magnetic surveys, and 1,617m of diamond drilling. Agricola will now have to complete the remainder of the revised work programme (1,583m of diamond drilling) by 30 June 2009 to earn a 51% interest in the Ballek Project.
For further information :-
Dr. Robert Young, Chairman, Beowulf Mining Plc+44 (0)1353 649 701Gavin Burnell, Ruegg & Co Limited+44 (0)207 584 3663
David Scott / Nick, Bealer Alexander David Securities Limited +44 (0)207 448 9800
Gary Middleton, St. Swithins PR Ltd07951 603 289
Note.
On 1 June 2007 the directors of Agricola reported the signing of an option and earn-in agreement on the Ballek 2, 3, 4 and 5 exploration permits that cover 110 square kilometres of Arjeplog County of Northern Sweden.
Agricola was granted an option to acquire a 51% interest in the licences by undertaking magneto telluric, induced polarisation and resistivity surveys, followed by 3,000 metres of diamond drilling. Agricola agreed to conduct the programme by 31 December 2008.
The surveys are intended to identify targets associated with the gravity anomaly under the claim block, and to identify any iron oxide copper gold (IOCG) deposits that may be present in the Ballek area.
It is intended that Beowulf will incorporate a new subsidiary company to hold the Ballek exploration permits and that, following completion of the agreed work programme, Agricola will be given a 51% shareholding in this company. By spending an additional US$500,000 Agricola can increase its interest in the Ballek licences to 70%.
Subsequent expenditure on the Ballek exploration permits will be made pro rata to Beowulf and Agricola's respective interests, subject to adjustment in the event that one party chooses not to fund their proportion of such expenditure.
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