MMX Mineração e Metálicos S.A. Announces New Business Opportunity in Chileadmin
MMX Mineração e Metálicos S.A., pursuant to article 157 of Law 6404/76, and CVM Instruction No. 358/02, hereby makes the following announcement:
Minera MMX de Chile, a wholly-owned subsidiary of MMX, has concluded (i) the acquisition of two mining rights in which the Company has identified promising iron ore deposits and (ii) two Option Agreements whereby MMX will be entitled to purchase other neighboring mining rights for the exploration of iron ore (altogether the “Mining Rights”). Located within a 90km-radius from the city of Copiapó, in the North of Chile, the Mining Rights totalize an area of approximately 1,760 hectares and are on average 50km distant from the Chilean coast with access to natural deep water drafts.
The total purchase price of the Mining Rights, if the options are exercised, may reach USD 53.5 million. Of this amount, USD 26 million have been paid and the remaining amount will be disbursed in installments until the end of the exploration campaign.
Geological mapping and environmental licensing for the drilling campaign are already in progress, and a 2-year drilling campaign is expected to begin in the first quarter of 2009, with an estimated exploratory budget of approximately USD 17 million.
Based on MMX’s knowledge of the regional geology and published technical studies, MMX believes that the geological potential of the Mining Rights may present an attractive opportunity for a new iron ore System, with significant volumes and favorable logistics.
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