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.