Meekatharra renegotiates deal with Teck Corp.

Meekatharra renegotiates deal with Teck Corp.

SYDNEY (Reuter): Australian gold miner Meekatharra Minerals Ltd. said yesterday it had renegotiated the deal covering its strategic alliance with Canada's Teck Corp.

The alliance, originally signed in 1994, was designed to identify and apply for new contracts of work in prospective Indonesian areas.

Under the original terms, Teck provided the cash deposits which are required to secure new deposits with no cost to Meekatharra. A total of US$5.77 million had been lodged on that basis.

Under the new terms, Meekatharra proposes to list a new Canadian company that would hold 100 percent of the foreign equity of its Indonesian projects and would fund and manage them during exploration.

Teck would have the option to earn 51 percent of Meekatharra's interest in any of the projects at the cost of wholly funding a feasibility study.

Teck would also have to provide full production financing for resulting mine development.

Meekatharra chairman Don O'Callaghan said the new company would be controlled by Meekatharra and would include the developing Way Lingo gold and silver mine in South Sumatra.

"It is planned that the new Canadian company will be controlled by Meekatharra and will provide the funding for accelerated exploration of those highly prospective Indonesian properties as well as development of Way Lingo (US$15 million)," O'Callaghan said.

Meekatharra said the new agreement would ensure that its position would be free-carried through feasibility and construction of any major mine.