OPTION TO ACQUIRE EXPLORATION AND DEVELOPMENT PROJECT IN NORTHERN THAILAND
August 31, 2004
Amanta Resources Ltd. (the “Company”) announces that pursuant to a Memorandum of Understanding with Amanta Ltd., a private Thailand company, the Company has negotiated an option to acquire exploration and development rights to a multi-commodity mineral property in Phrae Province, in Northern Thailand, subject to technical and legal due diligence by the Company. The acquisition of the property is subject to regulatory approval. Suchada Sanksuwan, a newly appointed director of the Company is the majority shareholder of Amanta Ltd.
The project area comprises approximately 1.3 square kilometres and is held under three Mining Licenses registered to Phrae Sila Co. Ltd. The area occupies the southern portion of a breccia pipe, with total dimensions of approximately 2.5 kilometres by 0.5 kilometres, and is known to host a variety of minerals including tungsten, stibnite and fluorite.
Phrae Sila Co. Ltd. has operated small-scale mining operations since the 1970s, originally for stibnite (antimony ore), later for fluorite and subsequently for high-grade ferberite (a tungsten ore of the wolframite series). Active mining ceased some years ago.
The property has been mined solely for localized lenses or pods of high-grade material, which were extracted and hand sorted into a high unit value product. Disseminated mineralization is believed to occur throughout the breccia pipe.
Should the Company exercise the option to acquire the exploration and development rights, it must pay the sum of US$100,000 by December 31st, 2004. The Company will then have four years to complete its evaluation of the property, concluding with feasibility studies, if warranted.
Should feasibility studies demonstrate the economic and technical viability of a mining operation at the property, and the Company wishes to undertake such an operation on the property, the Company must pay an additional sum of US$250,000. The Company must also pay Phrae Sila Co. Ltd. a 1% Net Smelter Royalty (1% NSR) on any mineral production from the property, and grant Phrae Sila Co. Ltd. a 5% carried interest in the mining operation.
ON BEHALF OF THE BOARD OF
AMANTA RESOURCES LTD.
“Gerald D. Wright”
Gerald D. Wright,
President
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