USD 5.3million E&D Alliance - AngloGold Ashanti

4 Sep 2009 07:00



Horizonte Minerals plc / Index: AIM / Epic: HZM / Sector: Mining

4 September 2009

Horizonte Minerals plc ('Horizonte' or 'the Company')

 Forms US$5.3 Million Exploration Alliance with AngloGold Ashanti

Horizonte, the AIM quoted exploration and development company focussed on Brazil and Peru, is pleased to announce a three year US$5.3 million exploration alliance ('the Exploration Alliance') with international mining company AngloGold Ashanti Limited ('AngloGold'). The Exploration Alliance will be focussed on the discovery of new gold mineralisation in Brazil and their subsequent development. Under the terms, Horizonte will provide technical and operational management whilst AngloGold will fund the initial work programmes.

Highlights

The Exploration Alliance combines the technical and operational experience of both companies in Brazil

A first year cash commitment of US$900,000 of exploration funding provided by AngloGold

Additional development funding of US$1.4 million and US$3 million in the subsequent two years

All new projects defined will be owned 49% by Horizonte and 51% by AngloGold

AngloGold has an option to develop new discoveries to Pre-Feasibility stage in return for an additional equity interest 

Horizonte Chairman David Hall said, "This agreement reinforces the strong technical and operational skills of the Horizonte team. The need to develop new resources and the advantages of strategic exploration alliances has been recognised by both Horizonte and AngloGold and we hope to repeat AngloGold's success in new green-fields discoveries, and work towards Horizonte becoming its preferred partner in Brazil." 

The Exploration Alliance

Under the terms of the Exploration Alliance, AngloGold will fund, over the initial 12 months, US$900,000 in exploration expenditure.  This expenditure will include funding for prospecting in target areas and possible tenement applications. All work will be undertaken and managed by Horizonte.

AngloGold may, in its absolute discretion, elect to provide a further US$1.4 million at the end of the initial 12 months ('Year 2') followed by an additional US$3 million over the third year. All expenditure will be in accordance with programmes and budgets approved by AngloGold. Any expenditure in a year in excess of these annual amounts will be deducted from the subsequent year's allocation. 

On completion of the three year expenditure programme each property or properties comprising a target area will be subject to a separate joint venture (each a 'Target Area JV'), with the ownership interests in each such Target Area JV apportioned 51% to AngloGold and 49% to Horizonte. AngloGold may elect, in its absolute discretion, to earn up to an additional 19% (70% total) in a Target Area JV by funding ongoing exploration expenditure to complete a Pre-Feasibility Study in any Target Area JV within three years from that vesting date.

AngloGold may withdraw at any time without completing its expenditure obligations for a particular year once it has expended at least US$900,000.

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For further information visit www.horizonteminerals.com or contact:

Notes:

Horizonte Minerals plc is an AIM listed exploration and development company with a portfolio of gold, silver and base metal projects in producing mineral districts in Brazil and Peru. The Company is focused on creating value by generating and rapidly advancing new exploration projects to joint venture out to the major mining companies, providing mid term cash flow which is then used to develop the business and pipeline projects.

Horizonte has four strategic partnerships; AngloGold Ashanti, Troy Resources, Mineração e Siderugia Ltda and Barrick Gold, which the Company is working together with to develop its multi-commodity portfolio and explore further development opportunities in Brazil and Peru. 

The Company has two primary projects situated in the Carajas Mineral Province of northern Brazil being advanced towards a resource definition; the 22,556 hectare Lontra nickel project situated in the Araguaia mobile belt and the Tangara gold, which the Company signed a US$2.8 million option agreement to advance the project with Troy Resources in Dec 2007. Horizonte is also developing in tandem with Barrick Gold, the 2,147 hectare Pararapa gold property located in the Department of Arequipa, southern Peru. 

Additionally, Horizonte has a generative pipeline of early stage projects in development and has an established a 50:50 joint venture company with Mineração e Siderugia Ltda to finance the development of the Crixás, Goiás Velho, Carajás Norte, Lobo and the Araguari and Itajobi pipeline projects and identify and acquire suitable bolt-on mineral projects in Brazil. Furthermore Horizonte has signed a US$5.3 million three year JV in September 2009 with AngloGold to focus on target generation and potential acquisitions of gold projects in Brazil.