Joint Ventures
BHP Billiton Exploration
Cooperation Agreement with BHP Billiton
In 2004 Albidon and WMC Resources ("WMC") entered into an agreement for the exploration and development of a number of Albidon’s nickel projects in Africa. The agreement specifically excludes the Company’s 100%-owned Munali nickel deposit . In June 2005, WMC Resources was acquired by BHP Billiton plc ("BHPB"), who will continue to operate the exploration programmes under the terms of the agreement.
BHPB has elected to proceed to the earn-in stage of the agreement in respect of several tenements at Songea in Tanzania. Through sole funding of agreed exploration programmes, BHPB may earn a 30% interest in this project by expending US$5 million, inclusive of the amounts expended on the project area during the initial period. BHPB may complete a Pre-Feasibility Study (including a JORC Measured Resource) on the Songea project to earn a 70% interest.
In 2007 BHPB carried out an extensive airborne geophysical survey and an initial ground follow-up programme designed to confirm targets fequiring further testing at Songea. The forward programme will be decided following an alysis and interpretation of the airborne survey and ground follow-up programmes.
