Official documents obtained by reporters over the weekend show that Indophil signed a letter of understanding (LOU) with PNOC-EDC two years ago.
The LOU, signed in July 2000, will allow Indophil to enter into PNOC-EDC’s mineral exploration permit area located in southern Negros where the former has a geothermal project.
Under the LOU, Indophil will have an option to take up at least a 65-percent equity in the venture.
"At anytime during the validity of the LOU, PNOC-EDC and Indophil may decide to form a joint venture partnership by executing a memorandum of agreement (MOA) or joint venture agreement of which Indophil will earn 65-percent equity after spending a minimum of $2 million for completion of the feasibility study. PNOC-EDC’s 35-percent participating interest is free carry up to the feasibility study," he said.
It was learned that Environment and Natural Resources Secretary Heherson T. Alvarez approved recently the renewal of the exploration permit of PNOC-EDC for another two years effective Jan. 10, 2002.
Under the second year of exploration, Indophil will conduct additional geological/geochemical work supported by geophysical survey to locate drilling targets in the project area.
The permit will allow Indophil to conduct an initial exploration/assessment work which include geological/geochemical/geophysical surveys and test drilling.
The said area is believed to have a highly prospective ground for copper deposit which is referred to as the Hinotongan copper project.