In a move aimed at uncovering large gold deposits in the Philippines, Echo Bay Mines (TSE) has formed an alliance with TVI Pacific (ASE).
The former will purchase, through a private placement, 5 million shares of the latter at $1 per share and gain the option to acquire a half interest in certain Philippine properties owned by TVI.
For its part, TVI will explore and develop these projects through the prefeasibility stage, at which point Echo Bay can exercise its option on any of them. The senior company would then conduct a feasibility study and take over as operator.
Echo Bay would be expected to match the amount of money TVI spends on the property and, in addition, make a payment based on the quantity of reserves established by the feasibility study. This could range from 4% to 6% of the value of Echo Bay’s share of the proven and probable reserves.
The partners recently bid jointly on the Kingking property, the outcome of which was unknown at presstime. (This acquisition would be separate from the aforementioned option agreement.)
The Calgary and Manila-based junior is involved with 15 projects in the Philippines, covering more than 1 million hectares. It is one of several juniors with which Echo Bay has formed an alliance for exploration purposes. Recently, the senior joined with Canarc Resources (TSE) to develop the Baramita gold play in Guyana.