Metalline
Mining Company
News
Release: For immediate release October 7, 1999
Coeur d’Alene, Idaho – Metalline Mining Company is
extremely pleased to announce the Joint Venture with North Limited of
Melbourne, Australia on their Sierra Mojada project in Coahuila, Mexico. Metalline’s president Merlin Bingham was
quoted as saying, ”We are extremely pleased with the selection of North as our
Joint Venture partner at Sierra Mojada.
North has demonstrated they have the complete package of necessary talents
and resources, along with a healthy enthusiasm for the property’s development,
needed to advance Sierra Mojada to bank feasibility as quickly as possible’.
North
Limited is an international mining company focused on development of Natural
Resources. North Limited was previously
known as North Broken Hill Peko Limited, before their name change in 1994. North's history is the history of Australia's
mining and industrial development over more than 100 years. The record is
a proud one, with many significant achievements including the company's role
as a founding shareholder in major enterprises such as EZ Industries, The
Broken Hill Associated Smelters, Western Mining Corporation and Alcoa of Australia.
Founded on the rich zinc-lead-silver lode of Broken Hill as North Broken
Hill Limited last century, North has evolved over the years and its businesses
have expanded to many parts of Australia and the world.
North owns and manages a portfolio of world-class resources
and value-adding assets in Australia and internationally. North produces Bulk Commodities: Iron Ore, Uranium, Wood Fibre, and Base
and Precious Metals: Zinc, Copper-Gold and Gold. According to North Limited’s 1999 annual report
they are a financially strong company with US$2.52
billion in assets and annual sales in excess of US$1.43 billion dollars. More detailed information can be obtained from
North’s Web site: www.north.com.au
The basic terms of the
letter agreement between North S. de R.L. de C.V. (North’s Mexican subsidiary)
and Minera Metalin (Metalline’s Mexican subsidiary), which will be followed by
a formal Joint Venture agreement, are:
North may acquire a participating interest of 60 per cent (and Minera
Metalin shall retain a 40 per cent participating interest) by exploring and
completing a feasibility study (which shall be of a standard acceptable to
international banks as enabling them to lend funds to the project) over a
period of not more than five years, the "Earn In Period". Metalin is obligated to ensure that the JV
has title to the Tenements, and the parties acknowledge that Metalin has an
obligation to make a payment of US$3,270,000 on August 30, 2000 in this
regard. Nevertheless, in the event
that Metalin is not able to make this payment, North shall have the option of
doing so on behalf of Metalin, in which case North will thereby earn an
additional 7.5% equity in the JV.