Altai allies with Normandy Mining

Toronto-based junior Altai Resources (ATI-T) is forming an alliance with Australian major Normandy Mining (NPL-ASX).

Under the agreement, Normandy will be issued 805,000 units of Altai Resources, equivalent to a 10% fully diluted shareholding, at an issue price of $1.50 per unit. Each unit will consist of one common share and one common share purchase warrant.

In return, Normandy can earn a 50% direct interest in four of Altai’s Philippine properties: Mabulao, Lahuy Island, Bulan and Mindoro. Normandy can increase its interest in these properties by funding bankable feasibility studies in the event of a discovery.

Normandy can elect to participate in further exploration by Altai in the Philippines during the next three years, under a 50-50 joint-venture arrangement, until US$500,000 is spent on each property. Normandy may then increase its interest in any acquisition to 60%.

Normandy will act as operator of the joint venture.