BILLITON AND LAKE RESOURCES N.L. FORM ALLIANCE TO EXPLORE FOR COPPER AND
OTHER BASE METALS IN SWEDEN
London, 21 June 2001
Billiton Development Far East BV and Billiton Arctic Resources BV
(collectively "Billiton"), have entered into an alliance with Australia's
Lake Resources NL ("Lake") to explore for iron oxide copper-gold and hybrid
zinc-lead-silver base metal deposits in granted tenements in the Norbotten
district of northern Sweden. Drilling of the identified targets is likely
to be completed in the current field season.
The broad terms of the agreement are as follows:
* Billiton will subscribe US$500,000 for shares in Lake, conditional on Lake
completing a capital raising and listing on the ASX and on a positive
outcome to Billiton's due diligence
* The majority of Billiton's subscription funds will be used to explore the
Klingersel and Tjamotis tenements and Billiton will have a right of first
refusal on Lake's other tenements in the district during the term of the
agreement
* On completion of initial scout drilling on the tenements, Billiton may
elect to commence a Joint Venture to earn a 51% interest in the project by
sole funding Aus$2.5m of exploration expenditure
* Billiton can then elect to earn an additional 19% (to 70%) in the project
by sole funding a further Aus$4m
* If Billiton has earned a 70% interest in the project, Lake can elect to
participate at 30%, to be diluted to a 10% interest loan carried to
production, or to receive a 3.5% cash operating profits royalty
Commenting on the agreement, David Whitehead, Billiton's Chief Executive
Exploration and Development, said, "Billiton believe that Lake's well
founded regional screening program in Sweden has generated base metal
targets that are prospective for copper-gold and silver-lead-zinc deposits
that warrant scout drilling. We look forward to working closely with Lake's
exploration management team to bring these projects to fruition."
ends
Enquiries:
Marc Gonsalves, Senior Manager Corporate Affairs, Billiton Plc
Tel: +44 20 7747-3956 Mobile: +44 7768 264 950
Fax: +44 20 7747-3903 email:
mgonsalves@billiton.com
Michael Campbell, Manager Corporate Affairs, Billiton SA Limited
Tel: +27 11 376 3360 Mobile: +27 82 458 2587
Fax: +27 11 376 3362 email: mcampbell@billiton.com
John Antcliffe/Michael Oke, Smithfield Financial: Tel: +44 20 7360-4900
Michael Campbell
Manager Corporate Affairs
Billiton
Tel: +27 11 376-3360
Fax: +27 11 376-3362
Mobile: +082 458 2587
Email: mcampbell@billiton.com
Website: www.billiton.com
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