West Perth-based Groote Resources has signed a deal with Korea Resources Corporation for its manganese project in the Northern Territory.
West Perth-based Groote Resources has signed a deal with Korea Resources Corporation for its manganese project in the Northern Territory.
The non-binding memorandum of intent provides a framework for Groote and KORES, a wholly-owned Korean government enterprise, to enter into a commercial relationship for the Eylandt manganese project.
The project includes an exploration licence covering 1665km2 of highly prospective, shallow marine terrain near Groote Eylandt.
"Groote Resources looks forward to working with KORES representatives as they complete the review on the Company's key asset, the Groote Eylandt Manganese Project in the agreed time-frame," said Groote Resources executive director Simon Noon.
"Subject to successful completion of project review by KORES, the parties could enter into a formal commercial relationship following April 2011," Mr Noon said.
See company statement below:
The Board of Perth-based manganese explorer, Groote Resources Limited (ASX: GOT) ("Groote" or "the Company") is pleased to advise that it has signed a non-binding Memorandum of Intent (MOI) with a Korean consortium led by wholly-owned government enterprise Korea Resources Corporation ("KORES").
The MOI was signed at a ceremony held in Perth, Western Australia, on 29 November 2010. Groote Resources was represented by Executive Director, Mr Simon Noon, while KORES was represented by Executive Vice-President, Kang, Chon-Gu.
This MOI will establish a framework of cooperation to review, which will provide a basis of the parties entering into a commercial relationship regarding the Company's Groote Eylandt Manganese Project in the Northern Territory of Australia.
KORES is actively investing in a wide range of minerals projects for Korea across the globe and invested in numerous notable mining projects around the world, in total it has invested in 31 projects in 12 countries.
Groote Resources believes the signing of the agreement with the Korean consortium provides the Company with an excellent opportunity to present KORES with full details of its premier asset, the Groote Eylandt Manganese Project. This Project includes exploration licences granted to its whollyowned
subsidiary, Reflective Minerals Pty Ltd, which cover an area of 1665km2 of highly prospective, shallow marine terrain near Groote Eylandt.
Groote Resources is keen to advance its non-invasive exploration program on these granted tenements in a timely fashion
The KORES is a significant investor in and supporters of the Australian resources sector.
Under the Terms of the MOI, the proposed timeline is:
January, 2011 Desktop review
February, 2011 Due diligence
March, 2011 Documentation and Report
April, 2011 Decision will be made
"Groote Resources looks forward to working with KORES representatives as they complete the review on the Company's key asset, the Groote Eylandt Manganese Project in the agreed time-frame. Subject to successful completion of project review by KORES, the parties could enter into a formal commercial relationship following April 2011," Mr Noon said.
