15th Oct 2014 09:12
LONDON (Alliance News) - Rose Petroleum PLC Wednesday said drilling has started on the TC porphyry copper project located in the US state of New Mexico.
The project, which is operated by Rose's wholly owned subsidiary AVEN Associates LLC, has secured drilling permits from relevant institutions, including the New Mexico Energy, Minerals & Natural Resources Department's Mining & Minerals division, which is responsible for the utilization, conservation, reclamation and safeguarding of land and resources affected by mining.
Drilling at the project has been contracted through Holman Drilling Co, and the initial drilling programme will consist of one hole being drilled to a projected depth of 2,000 feet. The programme is expected to take about one month, and additional drill holes will be planned and permitted, should the initial drilling prove successful, it said in a statement.
The TC project is operated under a joint venture agreement between TSX-listed Lowell Copper Ltd, a copper exploration and development company, and Rose's subsidiary AVEN. The drilling programme is fully funded by Lowell, which will pay for the initial exploration phase, earning a 25% stake after spending USD250,000 on the project.
After completion of the initial exploration phase, Lowell will have an option to increase its interest to 51% by funding the next USD2.5 million of the exploration programme and a further option to increase its stake to 70% by investing an additional USD3.5 million, at which point Lowell's total investment in the joint venture will be USD6.3 million for a 70% interest.
Rose shares were down 3.3% to 2.97 pence per share Wednesday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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