Cambridge Mineral Resources has announced a farm-out of up to 66.67 per cent of its interest in the Falklands mineral onshore prospecting licence, to the Falkland Islands Company (FIC). The farm-out, part of a joint venture agreement, has been organised through Cambridge's subsidiary, South Atlantic Resources Limited (SARL). FIC is a wholly-owned subsidiary of Falkland Islands Holdings and Falkland Islands Mineral Development (FIMD).
Under the agreement, the FIC and FIMD will assume all the liabilities and obligations of SARL under the terms of the licence. Under the terms, they will have to meet the required minimum expenditure of £100,000 per annum for the three years up to October 31st, 2001, as well as paying the annual licence fee for at least the next two years.
The deal will have to be approved by Cambridge shareholders at an extraordinary general meeting.
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