Geograce ends exploration deal with Brazilian miner

MANILA, Philippines - Listed miner Geograce Resources Philippines Inc. has terminated its exploration agreement with the local subsidiary of Brazilian mining firm Companhia Vale do Rio Doce (Vale) for the assessment of its mining tenements in Masbate.

In a regulatory filing, Geograce said it has signed a mutual termination deed with Vale Exploration Philippines Inc., nullifying the exploration and option agreement dated June 24, 2008.

Geograce officials were not immediately available for comment.

In June 2008, Vale agreed to provide $6 million over three years to fund the early-stage exploration on Geograce’s Masbate tenements.

Geograce, on the other hand, will be responsible for managing the permit approvals and community relations aspect of the project.

At the end of the early-stage of exploration, Vale had the option to take a 51 percent interest in the Masbate claims and form a joint venture with Geograce.

The joint entity will then commission a pre-feasibility and bankable feasibility study on the claims.

The Masbate exploration project comprises seven mineral claims covering 84, 046 hectares in Masbate Island.

The Masbate tenements were seen to contain deep-seated porphyry copper and gold deposits.

Geograce’s Masbate claims are adjacent to the Aroroy gold mine operated by Australian miner CGA Mining.