Geograce Resources signs exploration deal with Vale

July 6, 2008

July 6th (Steel Guru) – INQUIRER reported that Geograce Resources Philippines Inc has signed an exploration and option agreement with Vale Exploration Philippines Inc a subsidiary of Companhia Vale do Rio Doce, which it described as the second biggest mining company in the world, for exploration of seven mining claims containing copper and iron ore in Masbate province.

Vale has committed to fund exploration expenditures of up to USD 6 million for the first two phases of the exploration agreement. This will include geological sampling up to drilling and other exploration activities.

Geograce said in a disclosure to the stock exchange that it and Vale agreed to cooperate in exploring seven mining claims in Masbate covering 84,046 hectares.

It said its board approved the execution of an exclusive option agreement and irrevocable special power of attorney with seven companies that own the Masbate claims for the acquisition of these claims from them.

Under the agreement, Vale will conduct preliminary exploration and evaluation of the Masbate claims while Geograce will obtain approvals for the exploration permit applications and maintaining the Masbate claims with appropriate government agencies.

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