If we need a reminder of how very global the mining industry has become, here it is: ANGLOGOLD of South Africa has signed a letter of intent with Toronto-based ABSOLUT RESOURCES covering the rights of AngloGold’s exploration projects in northern Peru.
Under terms of the proposed agreement, Absolut will issue 50,000 common shares and 50,000 warrants to AngloGold. Absolut will also spend at least US$150,000 for exploration of the area over two years. AngloGold has the right to back in to 65% of any project that has a resource of more than 2 million oz of gold by paying three times what Absolut has spent up to that time.
Absolut is a tiny company headed by president and CEO Dan Noone, appointed at the end of April 2004. Its primary asset is the Picho Machay gold project in Peru, details of which are available at www.AbsolutResources.com. That AngloGold believes it can advance its Peruvian projects is a large vote of confidence.