4 Mar 2014 07:00
Rose Petroleum plc (AIM: ROSE)
("Rose" or the "Company")
Joint venture agreement with Lowell Copper Ltd.
Rose Petroleum plc, the AIM-listed (Ticker: ROSE) natural resources company, is pleased to announce that its wholly-owned subsidiary AVEN Associates LLC ("AVEN") has entered into a joint venture agreement (the "JV" or "Agreement") with TSX-listed Lowell Copper Ltd. ("LCL" or "Lowell Copper") in connection with AVEN's TC porphyry copper project in the State of New Mexico, USA (the "TC Project"). The project was developed out of AVEN's porphyry copper Covered Area Program ("CAP").
Highlights:
· LCL to spend US$250,000 to fund initial exploration phase for 25% stake
· LCL will have an option to increase its interest to 51% by funding additional US$2,500,000
· At 51%, LCL will have an option to increase to 70% by investing US$3,500,000
· Term of the JV is four years
After completion of the initial exploration phase LCL will have an option to increase its interest to 51% by funding the next US$2,500,000 of the exploration programme and a further option to increase to a 70% interest by investing an additional US$3,500,000 at which point LCL's total investment in the JV will be US$6,250,000.
Should LCL elect to limit its investment to a 51% interest, then AVEN and LCL would fund the programme according to their percentage interests or be diluted according to standard dilution terms with LCL being credited with 51% valued at US$2,750,000 and AVEN 49% at US$2,642,000 as the starting point for dilution. Should either party drop below a 10% interest that interest reverts to a 1% free-carry.
The term of the JV is four years or until the exploration programme is completed under mutual agreement. The TC Project's area of interest covers approximately 25 sq. miles (64 sq. km).
The TC Project is located in New Mexico along the well-known Hillsboro-Chino-Tyrone-Lordsburg-Bisbee porphyry copper belt. The project is a CAP target with porphyry copper-style characteristics including quartz veins, propyllitic and argillic alteration and base and precious metals mineralisation identified in outcrop along the margins of the covered terrain. Sampling by AVEN of altered and mineralized rock has returned assay values up to 3,896 ppm Cu, 84 ppm Mo, 4,876 ppm Pb, 1,997 ppm Zn, 24 g/t Au, and 204 g/t Ag.
Permitting for the drilling programme is underway with drilling planned to commence in the second or third quarter of this year assuming no permitting delays.
Matthew Idiens, CEO, said, "We are very much looking forward to working with LCL and its Chairman and CEO, David Lowell in relation to the development of this asset. We could not have found a better partner to support and fund the TC Project. The funding covers the direct exploration, salaries and overhead of the copper team as a standalone venture from Rose's growing oil and gas activities. It is particularly pleasing to see one of the prospects we identified as part of our copper programme attract a joint venture partner of the caliber of LCL. "
David Lowell, Chairman and CEO of LCL remarked, "The size of the covered area is such that one to two drill holes could very quickly reveal whether there is the potential for buried mineralization."
Lowell Copper Ltd.
Lowell Copper is a copper exploration and development focused company led by J. David Lowell and is listed on the TSX-V. The Company was founded to leverage the current market conditions and build a portfolio of economic copper projects through a combination of exploration, mergers and acquisitions by utilizing the considerable experience and success of management and directors of the Company.
For further information, please contact:
Rose Petroleum Plc +44 (0) 20 7225 4595
Matthew Idiens
CEO
Allenby Capital (Nominated Adviser & Broker) +44 (0) 20 3328 5656 Jeremy Porter / Alex Price
Lionsgate Communications (Public Relations) +44 (0) 20 3697 1209 Jonathan Charles
Kristopher K. Hefton, BSc Geology, Chief Operating Officer Rose Petroleum plc, who meets the criteria of a qualified person under the AIM Rules - Note for Mining and Oil & Gas Companies, has reviewed and approved the technical information contained within this announcement.
About Rose Petroleum
Rose Petroleum plc (AIM Ticker: ROSE) (formerly VANE Minerals plc) is focusing on developing its oil & gas portfolio, whilst seeking to create value from its historic mining portfolio.
In late 2013, Rose raised additional capital and appointed John Blair as Head of New Ventures, and brought in an in-house technical team including geological and drilling expertise to pursue significant new oil and gas assets.
In 2014, the Company announced that it had completed the acquisition of three licences in Germany; two licences in Southern Germany covering approximately 635,000 acres with each licence area represented to have at least four target pay zones; and the third licence covering 657,000 acres located in the Weiden Basin (northeast Bavaria). Management intends to build on these initial acquisitions to establish a balanced international asset portfolio.
For further information please consult the Company's website: www.rosepetroleum.com