Agricola Resources PLC (PLUS:AGRI) is pleased to announce that Beowulf Mining PLC ("Beowulf") (AIM: BEM ; Aktietorget: BEO), the AIM and Aktietorget traded mineral exploration company with several exploration projects in Sweden has extended the Option Agreement with Agricola to complete 3,200m of diamond drilling and a Geophysical Survey on the Ballek copper-gold-uranium exploration permits to 31 March 2010.
Agricola has brought the Lulepotten copper-gold deposit at the Ballek joint venture to a maiden JORC- compliant Inferred Resource stage showing 5.4m tones at 0.8% copper and 0.3 g/t of gold. The Geophysical Surveys have been completed and identified targets associated with the gravity anomaly under the claim block, and to identify any iron oxide copper gold (IOCG) deposits that may be present in the Ballek area.
The option and earn-in agreement covers the Ballek 2, 3, 4 and 5 exploration permits that cover 110 square kilometres of Arjeplog County of Northern Sweden. Agricola can earn a 51% interest in the Ballek JV from Beowulf by completing an agreed work programme of drilling by 31 March 2010, and can increase its equity to 70% by completing a further US$500,000 exploration expenditure on the JV.
It is intended that Beowulf will incorporate a new subsidiary company to hold the Ballek exploration permits and that, following completion of the agreed work programme, Agricola will be given a 51% shareholding in this Company.
After completion of the additional US $500,000 work programme and Agricola attaining a 70% interest, subsequent expenditure on the Ballek exploration permits will be made pro rata to Beowulf and Agricola's respective interests, subject to adjustment in the event that one party chooses not to fund their proportion of such expenditure.
The Directors of the issuer accept full responsibility for this announcement.