EXCELLENT NEWS
Anatolia Minerals Development Ltd
Joint venture with Rio Algom
Anatolia Minerals Development Ltd AMCD.U
Shares issued 14,700,000 May 26 close $0.45
Wed 27 May 98
Anatolia Minerals Development Limited (AMDC) is pleased to announce the
signing of a definitive Letter Agreement with Rio Algom Limited (Rio) for
joint exploration of base and precious metal prospects in Turkey. A
comprehensive Formal Agreement is expected to be executed by mid-July.
Under the Agreement, Rio will purchase 1,764,706 common shares of AMDC at a
price of US$0.85/share (US$1.5 million total). Of this, US$1,000,000 will
be directed at further exploration of AMDC's 'Yenipazar' and 'Armutbeli'
prospects over an 18-month period; US$500,000 will go into AMDC's general
funds. Rio may buy up to US$2.5 million more of AMDC shares at a 10%
discount to the then 10-day market price to further fund exploration and
extend the pre-earn-in period by an additional 12 months. In addition, Rio
will have a right of first refusal on other AMDC properties during the same
18 to 30 month period.
Rio must spend an additional US$10 million per property to earn a 60%
interest in each property or, at AMDC's option, spend up to US$27.5 million
per property and produce a feasibility study of a form and detail as is
customarily required for project financing to earn a maximum 70% interest
in each. AMDC will be operator until Rio earns a majority interest and Rio
thereafter. Project financing may be arranged by Rio, if development is
economically justified.
Rio shall appoint one voting member to AMDC's Board of Directors and will
participate in the approval of Annual Budgets and Programs. Rio's nominee
to the AMDC Board has not yet been named. AMDC looks forward to working
together with Rio to explore and develop a wide range of prospects in
Turkey.
AMDC has 14.7 million shares issued and outstanding, 24.1 million shares
fully diluted.
For more information, please contact:
Richard C. Moores II
President
Anatolia Minerals Development Ltd.
3721 Hwy. 74, Suite 14
P.O. Box 3925
Evergreen, CO 80437-3925
Telephone: (303) 670-9945
Fax: (303) 670-9947
George Duggan
Investor Relations
Michael Baybak & Company
4515 Ocean View Blvd., Suite 305
La Canada, CA 91011
Telephone: (818) 542-6880
Fax: (818) 249-7024
Email: mailto:mbc@relaypoint.com
Mr Metals
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