Range is proceeding with a US$50m Farm-In and plans for an AIM listing following the formal signing of the Puntland Production Sharing Agreement (“PSA”) between The Government of Puntland, Range Resources Limited and Canmex Holdings (Bermuda) II Limited (a subsidiary of TSXV listed Canmex Minerals Corporation).
As previously disclosed to the market, the PSA relates to the two main exploration areas in Puntland, namely the Nogal and Dharoor Valleys. Under the terms of the PSA, Canmex (as part of its proposed US$50m 80% farm in agreement with Range) will commit to a comprehensive exploration work program under two 3-year periods in respect of each exploration area.
The work program includes:
a) Geological fieldwork;
b) Acquisition of surface high resolution geochemical surveys;
c) Reprocessing of prior 2D seismic (up to an aggregate of 1,000 line km);
d) Review and integration of all geophysical and geological data; and
e) Drilling of four exploratory wells (over the first (minimum two) and second exploration periods for both areas).
The PSA signing was attended by His Excellency, Puntland President Hersi, Director General of the Puntland Energy and Mineral Resource Agency, Hassan Mohamoud, Range Executives and Canmex President and CEO Richard Schmitt.