INDOPHIL RESOURCES OF MELBOURNE has revised an agreement with Alsons Corporation and this would expedite the purchase of the latter’s remaining 3.27-percent stake in the Tampakan copper and gold project in southern Philippines.
Indophil said in a statement posted on its website that once this new arrangement with Alsons is finalized and approved, “Indophil would be in a position to move to a 37.5 percent interest in the project.”
The Australian miner already holds a 34.23 percent interest in the Tampakan project, with global mining giant Xstrata holding a 62.5 percent interest.
The revised agreement provides a trigger for an accelerated acquisition of Alsons’ remaining 3.27-percent interest in Tampakan once Indophil receives an acceptable third party proposal to purchase its interest in the project.
“On this basis, Indophil waives the remaining two Tampakan milestones (the completion of the bankable feasibility study and completion of plant commissioning) to allow the granting of Indophil shares to Alsons,” Indophil said.
At the same time, the new agreement includes a waiver by Alsons of milestone-related cash considerations. In return, Indophil will continue to fund Alsons’ share of project cost commitments, the Australian firm said.
Originally, Indophil arranged to acquire Alsons’ 5 percent interest as key project project milestones are achieved in exchange for cash and shares of the Australian firm. The first tranche has been completed, raising Indophil’s stake to the present 34.23 percent from 32.5 percent.
Indophil CEO Richard Laufmann said the revised agreement was part of the firm’s strategy to maximize the value of its stake in the Tampakan project and was in discussion with a number of parties.
“There is considerable global interest in acquiring copper projects and there is considerable interest in Tampakan, a world-class copper-gold deposit. While there has been no formal purchase agreement at this time, indications are that most buyers would prefer to acquire the combined 37.5%,” Laufmann said.
The Tampakan copper-gold project, located north of General Santos City, is a 2.4 billion tone mineral resource containing an an estimated 13.5 million tons of copper and 15.8 million ounces of gold.
