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Southern Hemisphere secures $25m for Chile exploration

7th February 2013

By: Natalie Greve

Creamer Media Contributing Editor Online

  

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JOHANNESBURG (miningweekly.com) – Emerging ASX- and TSX-listed gold and copper miner Southern Hemisphere Mining has secured a $25-million farm-in option agreement with Anglo American’s Chile-based subsidiary Anglo American Norte.

The agreement would allow Anglo American to earn up to 75% equity in Southern Hemisphere’s Chitigua, Carboneras and Meteoritica exploration projects, in Chile, by spending up to $25-million on exploration over a maximum five-year period.

Southern Hemisphere MD Trevor Tennant said the Anglo American agreement would provide financial surety for the Chitigua project.

“We were approached by two tier-one 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,” he said.

Southern Hemisphere had spent some $2.3-million on exploration and concession maintenance at Chitigua and had completed limited reconnaissance works at the Carboneras and Meteoritica projects.

The deal with Anglo American followed on the heels of a farm-in option arrangement in November between Southern Hemisphere and Lundin Mining for the company’s flagship Llahuin copper/gold project, where a major resource extension drilling programme was currently under way.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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