After months of negotiations, Santa Fe Pacific Gold (NYSE) has signed an agreement with the government of Kazakhstan concerning the Sharaltyn joint venture.
The agreement sets forth provisions for the exploration and development of 7.5 million acres in the northeastern part of the Central Asian country. It also establishes the rights and obligations of the joint venture, which is expected to last 30 years.
Key provisions establish a basis for project financing as well as a method for tax calculation and rates.
Joint-venture participants will be permitted to export gold directly, import capital equipment without duties, freely convert local currency, and maintain offshore bank accounts.
Santa Fe and its two state-owned partners were granted the exploration and mining licence for the Sharaltyn project in April, 1995. The 50-50 venture will focus on the Charsk mineral belt in the Semipalatinsk region.
Santa Fe will spend US$6 million over the 5-year period for earn-in, and is also responsible for all development funding.
Santa Fe recently hosted delegates from the Semipalatinsk region on a visit to its Twin Creeks and Lone Tree gold mines in Nevada.
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