Adelaide, Sep 26, 2006 AEST (ABN Newswire) - Minotaur Exploration Limited (ASX: MEP) is to step up its exploration for gold and copper in eastern Australia under a decision announced today to take a
A$1 million equity position in fellow listed explorer, PlatSearch NL.
Minotaur will subscribe for 8.75 million shares in PlatSearch with the funds to be paid in three tranches of A$350,000, equivalent to A$0.04 cents per share per tranche, over the next two years, for a total price of A$0.12 cents per share.
These proceeds can only be spent by PlatSearch on generating potential base and precious metals exploration drilling opportunities in Queensland, New South Wales, Victoria and Tasmania - and over which Minotaur would then have first right of refusal.
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PlatSearch is a renowned specialist along the eastern seaboard in initially identifying copper, gold, lead and zinc mineralisation requiring resource definition drilling by larger partners.
A key expectation of Minotaur is for potential greenfields gold and copper targets particularly to be identified in the Lachlan Fold Belt which covers much of central and eastern NSW and central and eastern Victoria.
"This expansion has the firm objective of lifting both the number of base and precious metals targets we can consider for drilling, and subsequently to increase the frequency and scope of our drilling along the eastern seaboard," Minotaur's Managing Director, Mr Derek Carter, said today.
"PlatSearch has a proven track record of identifying exceptional targets and this alliance will ensure that a higher number of potential farm-in opportunities are brought to our table on a sooner, rather than later basis," Mr Carter said.
"If we consider the targets fit our drill criteria, we can then move rapidly to a joint venture arrangement to optimise the innovative and technical exploration skill sets of both companies to enhance drilling schedules for individual new projects.
"Significantly, Minotaur has retained the right to involve Oxiana Limited in these joint ventures and for Minotaur to act as Operator - so the upside for us is high."
Two years ago, Oxiana acquired Minotaur's previously discovered Prominent Hill gold and copper project in South Australia, with it and Minotaur commencing an alliance on exploration projects in SA and elsewhere to identify "other Prominent Hills".
"This relationship with Platsearch will increase the opportunities for both Minotaur and Oxiana to drill test quality copper-gold targets," Mr Carter said.
Under the PlatSearch alliance, Minotaur can earn an 80% equity in a new joint venture project with the expenditure of $2 million.
PlatSearch may elect to be free carried to completion of a Bankable Feasibility Study or revert to a 2% net smelter return.
The new alliance further broadens Minotaur's exploration footprint and direct equity stakes in the resources sector.
The Company is a 40% shareholder in geothermal energy explorer, Petratherm Limited; owns 22.2% of nickel explorer, Mithril Resources; has a 24.7% interest in Toro Energy, one of the most successful uranium listings this year on the ASX; and is a 6.6% owner of ActiveEx Limited, which has gold and copper exploration projects in Queensland.
Contact
Kevin Skinner
Senior Consultant
FIELD PUBLIC RELATIONS
231 South Road
MILE END SA 5031
Tel: (08) 8234 9555
Fax: (08) 8234 9566
Mob: 0414 822 631
kevin@fieldpr.com.au
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