Partners

Friday, 28 November 2008 07:48

We have the Right Partners

Leveraging our opportunities; leveraging our strengths - Our arrangements with the NWME

RNG announced on 23 June 2008 that in principle terms have now been agreed for Northwest Nonferrous International Investment Company Ltd a 100% owned subsidiary of the Northwest Mining and Geological Exploration Bureau for Nonferrous Metals (NWME) to undertake exploration and earn-in to RNG’s Indee Project in Western Australia.

RNG and NWME also agreed in principle terms for co-operation on further projects in Australia. This announcement followed the 12 May 2008 announcement of the memorandum of understanding for exploration on RNG’s Indee tenements under a proposed farm-in agreement with NWME. The terms for the earn-in agreement for the Indee Project are:

1. NWME will earn 49% of the Indee Project by spending AUS$9 million over four years.
2. Following the earn-in period both NWME and RNG will be responsible for development expenditure in proportion to their shares in the project.
3. RNG and NWME will form a Technical Committee and an Operating Committee to oversee the exploration programme.
4. RNG will be the manager and entitled to a management fee.
5. NWME will provide technical and other exploration personnel and equipment to facilitate expedition of the proposed programme.

Similar terms will apply to other projects in Australia. RNG and NWME have signed a letter agreement agreeing to these in principle terms and are proceeding to finalizing a detailed binding agreement. The agreement will require the approval of the Chinese Government, as well as the Foreign Investment Review Board of Australia. This agreement is a marvelous opportunity for RNG to leverage opportunities that are advanced exploration projects, or are projects that require further resource definition to take them to feasibility study. Like RNG, the NWME is keen to develop projects towards production. The NWME has exceptional skills, knowledge and resources to undertake exploration. RNG has complimentary skills in project development and operation. Hence, both RNG and NWME can leverage their opportunities and strengths through these arrangements.

Our other partners

RNG has farm-in agreements with Minotaur Exploration Limited (Minotaur), a very successful explorer, on our South Australian tenements. Minotaur is exploring for gold on these tenements. In addition to Minotaur, Toro Energy Limited has farm-in arrangements for Uranium on our South Australian tenements. In Victoria, RNG has farm-in agreements with Oroya Mining Ltd on two of Oroya’s Victorian Tenements. These agreements are examples of the arrangements RNG will seek to put in place on exploration tenements.

About Northwest Nonferrous International Investment Company Ltd

The Northwest Nonferrous International Investment Company Ltd is 100% owned by the Northwest Mining and Geological Exploration Bureau for Nonferrous Metals (NWME) and is based in Xi’an city of Shaanxi province, China. The NWME has more than 6,000 employees including 800 geologists, technologists and engineers.

The NWME is one of the top five exploration and mining Bureaus amongst around 100 provincial Bureaus in terms of revenue and technical capacity. NWME was the first bureau in China to conduct exploration projects in partnership with companies from Western countries. Last year, NWME formed a joint venture with Yukon – Nevada Gold Corporation to carry out exploration on new acquisitions. More recently, NWME in partnership with Jinduicheng Molybdenum Group Pty Ltd, entered into an Acquisition Agreement with Yukon Zinc Corporation.