1ST JUNE 2007. The directors of Agricola Resources PLC ("Agricola") the Plus Market listed uranium explorer, are pleased to report the signing of an option and earn-in agreement with Beowulf Mining PLC ("Beowulf") the AIM listed copper, gold and uranium explorer on the Ballek 2, 3, 4 and 5 exploration permits that cover 110 square kilometres of Arjeplog County of Northern Sweden.
Agricola has been granted an option to acquire a 51% interest in the licences by undertaking magneto telluric, induced polarisation and resistivity surveys, followed by 3,000 metres of diamond drilling. Agricola has agreed to conduct the programme by 31 December 2008.
The surveys are intended to identify targets associated with the gravity anomaly under the claim block, and to identify any iron oxide copper gold and uranium (IOCG) deposits that maybe present in the Ballek area.
It is intended that Beowulf will incorporate a new Swedish subsidiary company to hold the Ballek exploration permits (the "Project Company") and that, following completion of the agreed work programme, Agricola will have earned a 51% shareholding in the Project Company and will have the option to increase this to a 70% shareholding by investing a further US$ 500,000 in the Project Company.
Subsequent expenditure on the Ballek exploration permits will be made pro rata to Beowulf and Agricola's respective interests, subject to adjustment of these interests in the event that one party chooses not to fund their proportion of such expenditure.
Agricola recently raised GBP467,800 in exploration finance through an investment made by Energy Ventures Limited (EVE), a Perth based investment company listed on the Australian Stock Exchange. EVE will also provide Agricola with technical expertise for its exploration programmes.
R D Young, J O Larsson and A C R Scutt, who are directors of Agricola are also directors of Beowulf.
Contact :
Dr. Robert Young, Chairman
Agricola Resources plc
Tel: +44 (0) 1353 649 701
Mr Richard Newstone
Finance Director
+44 (0)20 7624 8703
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