Anglo Plats eyes Agnew

Vancouver — Anglo Platinum, which is already funding an 11,000-metre drill program over the promising River Valley platinum-palladium property, has inked a deal to earn up to a 65% stake in the nearby Agnew Lake project, 60 km west of Sudbury, Ont.

Under the agreement with Pacific North West Capital (PFN-V) and New Millennium Metals (PGM-V), the major can earn a 49.5% interest by spending $6 million before the end of 2004.

Anglo Platinum also agreed to make cash payments of $200,000 to both juniors on closure of the deal, which is expected by Friday. The company can then increase its stake to 57% by completing a bankable feasibility study and add a further 3% by funding all development costs. Once in operation, Anglo Platinum has the right to purchase another 5% based on the net present value of the operation.

Pacific North West Capital is earning a 50% interest by spending $500,000 on exploration, making cash payments of $200,000 and issuing 50,000 shares to New Millennium. To date, the junior has paid $65,000 in cash and issued 50,000 shares.

The Agnew Lake property covers most of the Shakespeare-Dunlop mafic intrusion. Previous work by Pacific North West Capital included geological and geophysical surveys. The partners anticipate a $1.18-million program for this year. This will cover additional work, such as diamond drilling.

Meanwhile, 60km northeast of Sudbury, partners Pacific North West Capital and Anglo Platinum have completed more than 40 holes of an ongoing fourth round of drilling on the River Valley property. The 11,000-metre program is slated to be finished by early July.

Anglo Platinum, a traded subsidiary of South Africa’s Anglo-American (AAUK-Q), can earn a 65% stake in the property by funding it through to production.