Rio clarifies deal with Anatolia

I wish to clarify your description of the terms of our agreement with Anatolia Minerals Development, as described in a recent issue (“Rio Algom teams with Anatolia in Turkey,” T.N.M., Sept. 7-13/98).

In addition to the share financing, Rio Algom has the right and option to earn a direct 60% interest in each specified property by spending $10 million on each such property. If Anatolia then elects not to participate, Rio may earn up to 70% by spending $27.5 million, including the $10 million, and completing a feasibility report as defined. Rio prefers not to use the adjective “bankable” when applied to a feasibility study, as it may create an incorrect impression depending on the intention of the parties. In the event of a production decision, Rio Algom may arrange project financing, assuming it is advantageous to do so. Rio Algom has the right to become operator of any property once it elects to earn a direct interest.

C.K. O’Connor

Vice-President of Exploration

Rio Algom

Toronto, Ont.