Canadian company, ME Resource Corp, has entered into an agreement to acquire 70 per cent stakes in two exploration licenses in the Chaghi mineral belt in Baluchistan, contiguous to Reko Diq, one of the world’s largest undeveloped copper-gold deposits with disclosed resources of 21.77 billion kilograms of copper and 40 million ounces of gold, Profit learnt.
According to the company website, ME Resource Corp is acquiring 70 per cent interest in two large exploration licenses (EL-94 and EL-102), 6-kilometer of west of the Reko Diq, by funding exploration for large copper-gold deposit. The company will now seek formal regulatory approvals to start operations.
It points out that to comply with Pakistan’s mining laws, its partner, Adza Minerals, will be operator of EL-94, and Pure Minerals will be operator of EL-102, until December, 2012. During two year period, ME Resource Corp will have its own geologist in the field to oversee and monitor the exploration work. However, after December 2013, ME Resource Corp will become operator of EL-94 and EL-102.
The company website indicates that a small portion of a large 13-kilometer by 7-kilometer induced polarisation anomaly was tested in 2005, with intersections up to 251 meters of 0.38 per cent copper and 0.2 grams per tonne gold and 45 meters of 0.66 per cent copper and 0.3 grams per tonne gold. However, the drilling did not test magnetometer survey results as they were not available.
It indicates that at Reko Diq, almost all of the known deposits have circular magnetometer highs. In 2012, a magnetometer survey will be done within the 13-kilometer by 7-kilometer induced polarisation anomaly to identify copper-gold deposits. It will start magnetic survey in March over the Sor Baroot induced polarisation anomaly to identify round mag highs that occur above copper-gold mineralised intrusive deposits such as at the 16 Reko Diq deposits.
According to the agreement, the company shall float 36 million common shares from treasury to the vendors. In addition, 12 million common shares may be issued as a bonus payment if resource milestones are met. A cash acquisition payment of $6 million is to be paid to the vendors on or before February 15.
However, if the cash payment is not made, the amount will be converted to long-term debt at a rate of seven per cent per annum and due on or before February 15, 2014, or converted to common shares at the lowest price per share acceptable to the exchange.
The company website also highlights that ME Resource Corp has teamed up with Baluchistan’s noted mining family, Zehri, to assist it in dealing and exploration in Pakistan. Zehri family is associated with mining business since six decades.
Canadian firm to acquire 70pc stake in mineral licenses in Pakistan
