Etruscan Announces Agreement with Anglo American for West Africa
June 10, 1998, Dartmouth, Nova Scotia - Etruscan Resources Inc. (EET.TSE) announced today that it had concluded an agreement with Anmercosa Exploration (Niger) Limited, a wholly owned subsidiary of Anglo American Corporation of South Africa Limited to participate in the exploration and development of the Tiawa gold concession in Niger, West Africa.
The agreement gives Anglo the right to acquire a 50% undivided interest in the Tiawa property upon making a cash payment of US$5,000,000 to Etruscan and by subscribing for US$5,000,000 of common shares of Etruscan at $4.00 per common share. Anglo will earn its 50% interest upon fully funding and completing a bankable feasibility study on the Samira gold deposit located on the Tiawa concession. Upon proceeding with development and mining operations, Anglo would arrange all financing required for the project with Etruscan contributing its share of the required equity and shareholders loans. If after completion of the bankable feasibility study Anglo decides not to proceed with the project, Anglo will be entitled to dispose of its 50% interest subject to rights of first refusal in favour of Etruscan.
Anglo will manage all exploration and mining activities on the Tiawa property. Etruscan has also granted Anglo the right to participate in all of its projects in West Africa on similar terms.
Gerald J. McConnell, Chairman and CEO of Etruscan stated:
"Today's agreement with Anglo is a major event for Etruscan in fulfilling its corporate objective of advancing the Samira gold deposit to production. Anglo has recently demonstrated its substantial capabilities in West Africa by bringing the Sadiola Hill property in Mali into production ahead of schedule and under budget. Sadiola Hill is one of the lowest cost gold mines in the world. I believe this experience will benefit Etruscan and Anglo at Samira.
We are very pleased to be teaming up with Anglo. The combination of Etruscan's exploration expertise coupled with Anglo's technical and financial resources will result in an extremely successful and profitable partnership."
The agreement with Anglo is subject to a 30-day due diligence period and the approval of Anglo's executive committee. The agreement is also subject to receipt by Etruscan of all necessary regulatory approvals.
Etruscan Resources Inc. is directly and through its subsidiaries involved in the acquisition, exploration and development of mineral properties in West Africa. The common shares of Etruscan are traded on The Toronto Stock Exchange and the Vancouver Stock Exchange under the symbol "EET".
ON BEHALF OF THE BOARD OF DIRECTORS OF ETRUSCAN RESOURCES INC.
Gerald J. McConnell
Chief Executive Officer
TEL: (902) 468-9270 Gerald J. McConnell, CEO
Dartmouth, Nova Scotia
TEL: (408) 395-1169 Rick Van Nieuwenhuyse, President
Los Gatos, California, USA
INET: etruscan.com
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