Rio Algom teams with Anatolia Minerals in Turkey

Rio Algom (ROM-T) is taking a position in, and entering a joint venture with, Anatolia Minerals Development (AMCD.U-C), a junior exploring for base and precious metals in Turkey.

For an aggregate US$1.5 million, Rio Algom has bought 1.8 million treasury shares of Anatolia, resulting in a 10.7% interest. Rio can buy additional shares at a 10% discount, up to an aggregate purchase price of US$2.5 million.

Anatolia says US$1 million will be used to explore its Yenipazar and Armutbeli prospects, and possibly others, over an 18-month period. Another US$500,000 will applied to regional exploration in Turkey.

For each property, Rio Algom must spend another US$10 million to earn a 60% interest or, at Anatolia’s option, spend up to US$27.5 million and produce a bankable feasibility study to earn a maximum 70% interest. In the event of a production decision, Rio will arrange project financing, though Anatolia would be the initial operator.

As well, Rio Algom will have certain rights-of-first-refusal on other Anatolia properties in Turkey and can appoint one member to Anatolia’s board of directors.