Indian metals group joins SA iron ore search
Posted: 1 August 2007
Lincoln Minerals Limited today announced a $3.5 million exploration and investment agreement with an Indian metals group that will boost the SA explorer’s search for iron ore near Port Lincoln, on South Australia’s Eyre Peninsula.
Under the Heads of Agreement signed between Lincoln and the Bangalore-based Mineral Enterprises Limited, the diversified mining and energy group will contribute up to $2.5 million in exploration expenditure, earning up to 40% of Lincoln’s Gum Flat Project.
Minerals Enterprises Limited has also agreed to take up 3,500,000 fully paid ordinary shares in Lincoln Minerals Limited at 30 cents per share, raising $1,050,000 by 15 August 2007.
Lincoln Minerals’ Managing Director, Dr John Parker, said: “This is an exciting development for Lincoln Minerals and will enable the Company to maximise the iron ore potential of the Gum Flat Project for its investors.”
"Mineral Enterprises is an iron ore mining and minerals company in India and would be a potential buyer of output from a mine development that might flow from future discoveries by our Company," Dr Parker said.
"The Heads of Agreement, which the two parties are looking to finalise into a formal agreement as soon as possible, is another vote of confidence by large international metals groups in the prospectivity of South Australia," he said.
Key elements of the Head of Agreement include Mineral Enterprises, subject to certain conditions, contributing:
- $500,000 to an initial drilling program at Lincoln’s 100% owned Gum Flat tenement (EL3422),
- A further $500,000 in exploration expenditure, earning a 20% stake in the Gum Flat Project by 31 December 2008, and
- An additional $1.5 million in exploration expenditure, earning a further 20% interest, by 31 December 2010.
Mineral Enterprises Limited is a diverse Bangalore based corporation with interests in mining, power, infrastructure and bio-diesel. MEL has been extracting iron ore and manganese ore for over four decades and has substantial iron ore reserves in the Chitradurga and Turnkur Districts of southern India.
Lincoln Minerals listed on the Australian Securities Exchange in March 2007 after raising $7 million in an Initial Public Offer.
The Company holds substantial exploration leases and rights in the Gawler Craton of South Australia, particularly on Eyre Peninsula. Apart from uranium, its portfolio covers a range of base metals – lead, zinc, copper, nickel, silver – gold and iron ore projects.