Company Announcement: Southern Hemisphere Mining - Secures US$25M farm-in option agreement with Anglo American in Chile
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Southern Hemisphere Mining Limited is pleased to announce that it has added further momentum to its plans to build a substantial diversified copper/gold company in Chile after securing a strategic farm-in deal with Anglo American, one of the world’s leading mining companies, over 3 exploration projects in the country’s north. The farm-in option agreement allows Anglo American to earn up to 75% equity in the Chitigua, Carboneras and Meteoritica exploration projects by spending up to US$25 million on exploration over a maximum 5-year period.
The deal follows hard on the heels of a farm-in option arrangement, completed November 1, 2012, with Lundin Mining Corporation on the Company’s flagship Llahuin Copper/Gold Project, where a major resource extension drilling program is currently underway. Southern Hemisphere’s Managing Director, Mr Trevor Tennant, said he was delighted to have secured a strategic farm-in option agreement with a global company of Anglo American’s calibre, bringing financial surety for the Chitigua Project and many other important benefits to the Company including potential upside from exposure to a discovery by Anglo American. He said:
“This is another significant event for Southern Hemisphere, and complements the important strategic joint venture we concluded recently with Lundin Mining Corporation at our Llahuin Project. We were approached by two Tier 1 mining companies, which were interested in a farm-in arrangement for the Chitigua Project area and we decided to enter into an option arrangement with Anglo American.” Southern Hemisphere has expended US$2.3 million on exploration and concession maintenance at Chitigua and completed some limited reconnaissance works at the Carboneras and Meteoritica Projects.
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