Firms discuss joint venture

Toronto-listed International Platinum Corp. has signed a letter of intent with Degussa A.G. to enter into further negotiations on a joint venture exploration agreement regarding several of the former’s platinum properties.

The letter of intent covers 15 of the 22 platinum bets within the fold of International Platinum. They are the Big Trout Lake prospect in northern Ontario; the Muskox property in the Northwest Territories, 300 miles north of Yellowknife; the Axelgold property in north-central B.C.; New Rambler, Wyoming; Clearwater River property in Saskatchewan; Reed Lake, Man.; six properties in the Lac des Iles area of Ontario, the Vachon property, Que.; and the Harp Lake and Kiglapait properties both in Labrador, Nfld.

The Fox River property in Saskatchewan in which BP Selco is earning a 60% interest by spending $1 million on exploration is not part of the package.

Under the terms of the Letter of Intent, Degussa, in consideration for an immediate 50% interest in the joint venture and the properties, would contribute to a 3-year exploration budget of $4.5 million.

The contribution will be based, says International Platinum, on “the presently audited concept” of Degussa matching International Platinum’s past exploration and acquisition costs, which are estimated at about $2 million and contribution on a pro rata basis thereafter.

The conclusion of the joint venture agreement is subject to regulatory and board approvals. The conclusion of the agreement is also subject to the completion of further detailed examination and investigations by Degussa.

James Trusler, vice-president exploration with International Platinum explains the signing of the letter of intent follows some two months of ongoing discussions and investigations between International Platinum and Degussa.

Degussa has completed a geological investigation of the properties and has examined the core samples as well as engineers and geological reports on the properties.

Part of Degussa’s “detailed examination and investigations” will be confirming the legal agreements and warranties regarding the claim holdings, says Mr Trusler, adding that final approvals are expected this May.

West German based Degussa is a refiner, trader and supplier of precious metals and precious metal products including platinum and platinum group metals. It is active also in chemicals, plastics, pharmaceuticals, chemo-technical equipment and plants. It owns 16 production units in the Federal Republic of Germany and has about 130 holdings in Europe and worldwide, including a plant in Burlington, Ont. were automotive exhaust catalysts where are manufactured.