BILLITON AND WESTERN KELTIC MINES
ENTER INTO EXPLORATION AGREEMENT IN SOUTH WEST ONTARIO
London, 9 May 2001
Billiton Plc announces that its subsidiary Billiton Resources Canada Inc. has
agreed the terms of an option agreement with Western Keltic Mines ("Western
Keltic") regarding its Sault Dam Cu-Au project near Ste. Sault Marie in
Ontario, Canada.
The agreement takes the form of an exploration option over an area of
approximately 6,300 ha located 25km NE of Ste. Sault Marie in SW Ontario,
Canada. Previous work by Billiton in the area suggests potential for
copper-iron-gold mineralisation of an affinity similar to that of the giant
Olympic Dam deposit in South Australia.
Under the terms of the option, Western Keltic may earn a 70% interest in the
property from Billiton by investing C$1.75 million in exploration work over a
four-year period. In addition, Western Keltic will issue Billiton up to 250,000
units comprising one common share and a full purchase warrant over a period of
four years, of which 50,000 units will be issued on commencement. Billiton will
retain a First Back In Right to earn an additional 20% interest in the property
(for an aggregate 50% interest) by spending the next C$3.5 million over a
period of 3 years. A second Back In Right allows Billiton to increase its
interest in the property to 70% by providing project financing to the start of
commercial production.
Commenting on the agreement, David Whitehead, Billiton Chief Executive,
Exploration and Development said, "This agreement with Western Keltic Mines is
a logical extension to our program of focusing on high-quality early stage
exploration opportunities that have the potential to develop into world class
mining operations. We are extremely pleased to add Western Keltic to our list
of partner companies and look forward to the results of the forthcoming
exploration program."
ends
Michael Campbell
Manager Corporate Affairs
Billiton
Tel: +27 11 376-3360
Fax: +27 11 376-3362
Mobile: +082 458 2587
Email: mcampbell@billiton.co.za
Website: www.billiton.com
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