EUREKA, UT, Sept. 10 /PRNewswire-FirstCall/ - (NASD: CFCM.PK) - Anglo American US (Utah) Inc. ('Anglo') (NASD:AAUK), an indirect wholly-owned subsidiary of Anglo American plc, a major internationally diversified mining company and Chief Consolidated Mining Company ('Chief'), (CFCM-OTC.BB) have executed and delivered a Limited Liability Company Agreement ('The LLC Agreement') in order to form the Big Hill LLC ('The Company') is a limited liability company to be incorporated under the laws of the State of Delaware, one of the States of the United States of America (USA) in order to explore for and, if justified, develop a porphyry copper-gold-molybdenum target located on claims in Utah, USA, presently owned by Chief or its wholly or partially owned subsidiaries (collectively the Company Property).
The porphyry target is located in the Tintic Mining District near Provo, Utah. A stockwork of quartz veinlets occupies the core zone of the target area with a lithocap superimposed on the stockwork, a process termed telescoping. Lithocaps usually define the shallow parts of porphyry copper systems typically above the main Cu-Au+/- Mo zone. Anglo, will become, upon incorporation of the Company, the owner of a 55% membership interest in the Company, in return for its covenant to fund all costs and expenditures of a program to complete a Pre-Feasibility Study on or before the third anniversary of the execution of the LLC Agreement and a Full Feasibility Study acceptable for senior financing, on or before the fifth anniversary of the execution of the LLC Agreement.
Chief, upon incorporation of the Company, will have a 45% membership interest in the Company in return for its assignment of the Company Property to the Company. Mr. Brian Mountford, a director of Chief and Dr. Richard Sillitoe are responsible for identifying the porphyry target. Mr. Mountford was responsible for negotiating the terms of the LLC Agreement with Anglo. Mr. Mountford will have a 5% beneficial interest in the Company held in Trust by Chief. Anglo, in its capacity after incorporation of the Company, as the Manager of the Company, proposes to commence drilling on the Company Property as soon as possible and anticipates a September 2008 start.
Whilst Chief directly owns some of the Chief property, the bulk of the Company Property is owned by Tintic Utah Metals Joint Venture ('TUMJV') (approximately 75% Chief and 25% Korea Zinc). Korea Zinc, Chief and Andover Ventures (TSX-V-AOX) have reached an Agreement whereby Chief will purchase outright all of Korea Zinc's interest in the TUMJV for $3,000,000.
Separate and excluded from the Anglo Agreement, Chief owns additional property in the District that it proposes to develop. The immediate plans for this land package will be described in a press release following the dissemination of this release.
This release shall not constitute an offer to sell or the solicitation of an offer to buy securities to/from any person, nor there any sale of such securities in any jurisdiction in which it is unlawful to make such an offer or solicitation. A number of statements in this press release are forward-looking statements, which are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act 1995. These forward-looking statements involve a number of projects, compliance with environmental legislation and local environmental rule, laws and procedures, the ability to raise capital to ensure optimization of budgetary planning and other factors described in the Company's filings with the SEC. The actual results that the Company may achieve may differ materially from any forward-looking statements due to risks and uncertainties.
SOURCE Andover Ventures Inc.
