Haddington signs agreement with Sons of Gwalia
Haddington International Resources Ltd HDN
Shares issued 1,462,111 Jul 26 close $0.22
Mon 31 Jul 2000 News Release
Mr. Colin McCavana reports
The company has signed a formal agreement with Sons of Gwalia Limited for
the development by Haddington of the Bald Hill tantalum deposit near
Widgiemooltha and the Cattlin Creek tantalum deposit at Ravensthorpe, in
Western Australia.
Sons of Gwalia Limited hold mining tenements over the deposits. Haddington
will not be acquiring the mining tenements from Sons of Gwalia but will
operate the mines under a licence arrangement. Haddington will be solely
responsible for the development of the mines, including compliance with
lease conditions, environmental conditions, government royalties, and
design, construction and operation of the mine and processing plant. Sons
of Gwalia will purchase all tantalum and tin concentrates produced from the
deposits on a take or pay basis.
Haddington expects to be in production at the Bald Hill project during
mid-2001. The agreement is contingent on commencement of plant construction
at Bald Hill by March 31, 2001, and completion by Dec. 31, 2001. Haddington
will deliver approximately 420,000 pounds of tantalite to Sons of Gwalia
over the approximate mine life of just under four years.
Haddington has proposed to carry out additional exploration in the Cattlin
Creek area with a view to improving the existing resource.
Haddington has also granted Sons of Gwalia the first right of refusal to
purchase any tantalite produced from its recently acquired Bald Hill
extended and Madoonia Downs prospects. Haddington sees these prospects as
important adjuncts to its agreement with Sons of Gwalia Limited.
Preliminary independent evaluation of existing data on the prospects
indicates significant potential for discovery of tantalite bearing
pegmatites in the licence areas.
This execution of the formal agreement with Sons of Gwalia Limited provides
Haddington with the impetus to move forward with the development phase of
the Bald Hill project and to achieve production at the earliest possible
time.
WARNING: The company relies on litigation protection for "forward-looking"
statements.
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