TORONTO, May 26 /CNW/ - Anatolia Minerals Development Limited ("Anatolia" or the "Company") (TSX:ANO) announces an agreement has been signed with Rio Tinto Mining and Exploration Limited ("Rio Tinto") settling all outstanding matters related to the Amended and Restated Strategic Alliance & Option Agreement ("SAO"). Anatolia's Cevizlidere Copper-Gold Project, which is part of the Tunceli Licenses, was previously subject to this SAO. The agreement provides that Anatolia will hold all legal rights with respect to the Tunceli Licenses, and there are no residual or continuing obligations or liabilities for either party. In exchange for this full and complete settlement, inclusive of the reimbursement of certain advances, Anatolia has agreed to pay C$2,000,000 to Rio Tinto in the form of 429,439 common shares of Anatolia. The shares were priced using the 10-day volume weighted average price as of May 11, 2010. The shares are generally subject to a 12-month hold period by Rio Tinto. Thereafter, Anatolia retains a 2-day right of first placement.
Edward Dowling, President and CEO of Anatolia Minerals commented, "We value our past relationship with Rio Tinto and are pleased that the parties have come to a final agreement settling the joint venture on the Tunceli Licenses, which include the Cevizlidere project, as well as other development targets. We believe the Cevizlidere project holds the potential to be a world-class copper-gold asset. Since assuming the role of the designated operator in 2006, Rio Tinto was unable to progress the exploration at Cevizlidere. Anatolia is better positioned to advance the project, since the Company did so prior to 2006, and today, the Company has a stronger in-country capability, profile and presence, as well as a superb business partner hailing from the broader region. We have already begun initial meetings with community leaders from the Tunceli region and look forward to engaging with a broader set of stakeholders to discuss plans to responsibly advance the property."
Anatolia, recognized as a leader in exploration and development in Turkey, is developing Çöpler. Çöpler is 95% owned by Anatolia and 5% by Çalik Mining (see News Release, August 13, 2009). Initial plans are to produce approximately 1.3 million ounces of gold at a cash cost of about US$260 per ounce. The first gold pour at Çöpler is expected in 2010 with full production to average about 175,000 ounces of gold per year after ramp up. Additional production expansion of the oxide and sulfide gold resource is expected at Çöpler by taking advantage of the inherent large resource through on-going technical activities. In addition, Anatolia holds a significant pipeline of prospective gold and base metal projects.
Anatolia currently has 138.3 million common shares issued and outstanding, 157.3 million fully diluted. Anatolia's common shares are listed for trading on the Toronto Stock Exchange under the symbol "ANO."
Except for statements of historical fact relating to Anatolia, certain statements contained in this news release constitute forward-looking information, future oriented financial information, or financial outlooks (collectively "forward-looking information") within the meaning of Canadian securities laws. Forward-looking information may relate to this news release and other matters identified in Anatolia's public filings, Anatolia's future outlook and anticipated events or results and, in some cases, can be identified by terminology such as "may", "will", "could", "should", "expect", "plan", "anticipate", "achieve", "believe", "intend", "estimate", "projects", "predict", "potential", "targeted", "possible", "continue", "objective" or other similar expressions concerning matters that are not historical facts and include, but are not limited in any manner to, those with respect to commodity prices, mineral resources, mineral reserves, realization of mineral reserves, existence or realization of mineral resource estimates, the timing and amount of future production, the timing of construction of the proposed mine and process facilities, capital and operating expenditures, the timing of receipt of permits, rights and authorizations, communications with local stakeholders and community relations, status of negotiations of joint ventures, availability of financing and any and all other timing, development, operational, financial, economic, legal, regulatory and political factors that may influence future events or conditions. Such forward-looking statements are based on a number of material factors and assumptions, including, but not limited in any manner, those disclosed in any other of Anatolia's public filings, and include the ultimate determination of mineral reserves, availability and final receipt of required approvals, licenses and permits, ability to acquire necessary surface rights, sufficient working capital to develop and operate the proposed mine, access to adequate services and supplies, economic conditions, commodity prices, foreign currency exchange rates, interest rates, access to capital and debt markets and associated cost of funds, availability of a qualified work force, lack of social opposition and legal challenges, and the ultimate ability to mine, process and sell mineral products on economically favorable terms. While Anatolia considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. Actual results may vary from such forward-looking information for a variety of reasons, including but not limited to risks and uncertainties disclosed in other Anatolia filings at www.sedar.com. Forward-looking statements are based upon management's beliefs, estimate and opinions on the date the statements are made and, other than as required by law, Anatolia does not intend, and undertakes no obligation to update any forward-looking information to reflect, among other things, new information or future events.
SOURCE Alacer Gold Corp.
For further information: For further information: please contact Edward Dowling, President and CEO, or Douglas Tobler, CFO at (303) 292-1299 or visit www.anatoliaminerals.com