Vale Exploration Philippines Inc., a subsidiary of Companhia Vale do Rio Doce , and Geograce Resources Philippines Inc. said on Tuesday that they had signed an exploration and option agreement for seven mining claims containing copper and iron ore in Masbate province.
Vale has committed to fund exploration expenditures of up to $6 million for the first two phases of the exploration agreement. This will include geological sampling up to drilling and other exploration activities.
Vale is the world’s top producer of iron ore and iron ore pellets, the second biggest producer of nickel and one of the world’s largest producers of manganese ore and ferroalloys. It is also one of the biggest logistics operators in Brazil.
Geograce said in a disclosure to the stock exchange that it and Vale agreed to cooperate in exploring seven mining claims in Masbate covering 84,046 hectares.
It said its board approved the execution of an “exclusive option agreement” and “irrevocable special power of attorney” with seven companies that own the Masbate claims for the acquisition of these claims from them.
Under the agreement, Vale will conduct preliminary exploration and evaluation of the Masbate claims while Geograce will obtain approvals for the exploration permit applications and maintaining the Masbate claims with appropriate government agencies.
Vale also has the option to form a joint venture for the development and operation of mining activities on the Masbate claims, Geograce said.
Source: Philippines Daily Inquirer
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