Carnegie Minerals to explore for nickel in North Maluku

London Stock Exchange-listed mining firm Carnegie Minerals Plc announced Thursday it has entered into an agreement with Western Australian based private resource exploration company, Asia Resources 168 Limited (ARL), to fund a staged exploration programme for iron and nickel laterite mineralisation on the island of Obi, North Maluku province.

ARL holds interests in a SKIP licence (temporary prospecting permit) in the southern part of Obi Island and plans to apply for further areas identified by Carnegie.

Carnegie has agreed to fund staged exploration and evaluation programmes to the extent of the first USD 1 million at which point it will be deemed to have earned a 50% interest in the CME - ARL OBI Island Project. Carnegie has the right to withdraw at any stage prior to expending this amount, however will retain no equity in the Project. Carnegie shall be the operator undertaking the exploration work with ARL responsible for logistics and local government relations.

Obi Island is situated midway between Irian Jaya and Sulawesi. It is part of the Sulawesi - Halmahera ophiolitic belt that hosts some substantial nickel laterite deposits including some under development and in production and is considered highly prospective for new discoveries.

Carnegie has the option to convert its 50% interest in the project to a gross sales royalty of 1% after it has expended USD 1 million or 2% if it has contributed to the extent of USD 2.5 million or greater. (alex)