Global, with its joint venture partners Cambridge Mineral Resources and the Falkland Islands Company, will form a new company with RAB Capital to investigate the Island's onshore minerals potential.
Prior to the finance agreement the partners each held a 33.33% interest in a minerals Licence covering the Island's, which has now been transferred to a new company, Falkland Minerals Ltd.
RAB will subscribe for 51% of FML by contributing $US1.2 million to a $US1.535 million program, the balance of which will be contributed by the existing shareholders. Global's interest in the new company will be 15%.
The Falkland Islands were initially targeted by the Global / FIC / CMR Joint Venture because the geological origin of the Islands was adjacent to South Africa before continental drift took place; that there was no previous systematic minerals exploration in the Islands so the project represented a virgin opportunity of some 14,000 sq km of unexplored country. Some 75% of the land surface of the Islands is covered by peat, which could mask significant mineral deposits.
The work program that has been agreed for FML comprises an immediate aeromagnetic survey over the whole of the Falkland Islands, followed by drilling of identified targets.
The 2004 program will also include additional stream sampling, field work and assaying.
