TVX and Rio Tinto companies to explore Brazilian platinum

A letter of intent has been signed regarding the exploration of a Brazilian property where the presence of platinum has been indicated.

The parties signing the letter are Companhia Nacional de Minerarao (CNM) and RTZ Mineraca. The former is a Brazilian company held 49% by Toronto-based TVX Mining Corp. and 51% by Autram Aureum Industria E Comerica. RTZ is a wholly-owned subsidiary of the Rio Tinto Zinc Corp. of England. The property is held by CNM and is located in the state of Ceara. Sampling by RTZ this past July indicated the presence of platinum and associated minerals.

Under the terms of the proposed agreement, RTZ will be responsible for managing the exploration program. It may invest up to $15 million in exploration and acquisition expenses to earn a 40% interest in the property.

RTZ would also have the right to acquire an additional 20% interest in any project which results.

Provisions have been discussed for the formation of a joint venture between CNM and RTZ should the deposit prove to be commercially viable. The project would be managed by RTZ which would be responsible for arranging the necessary financing.