Mining Company to Explore for Gold, Other Minerals in Equatorial Guinea
Posted on June 13th, 2010
() Houston – Sillenger Exploration Corp. (OTC: SLGX) announced Monday that it would begin exploring for gold and other minerals in Equatorial Guinea through an airborne geophysical survey. Upon completion, the Company can cherry pick 15% of the area for its own development.
Sillenger is the first junior mining company to ever lock up an entire nation’s mineral rights, a feat not even any major mining company has been able to pull off. The Company was featured in an story on June 2 in which reporter Alan Fein noted that a report by the US Geological indicated the “strong likelihood” that gold would be discovered in Equatorial Guinea, as several hundred kilograms had been exported in 2007. Now Sillenger is stepping up to the bar in an $8.3 million contract to explore two of the more likely areas of Equatorial Guinea. In return for conducting the airborne geophysical survey, SLGX will be given the mining rights on 15% of the area for minerals and hydrocarbons of their choosing.
Sillenger said in an 8-K filing on Monday that it would prepare for a $10 million private placement in order to cover costs of the airborne geophysical survey to be conducted by Fugro Airborne Surveys Corporation. The company also credited the Equatorial Guinea exploration agreement to a land claims management system developed by Sillenger President, John Gillespie.
The disclosure filing noted that Gillespie “developed a proprietary method of land claims management that he believes will be of interest to governments of developing countries.” He was able to convince the Ministry of Mines, Industry and Management of Equatorial Guinea to enter into an agreement that gave the exploration rights for both hydrocarbons and minerals to a prior-to-now obscure junior exploration and development mining company of any property the Company wanted as long as it shared its detailed survey results with the government agency. Ministry Director, Mr. Diosdado Engono Bengono, further pledged to ‘fast-track’ any approvals needed in order for Sillenger to proceed with its nationwide survey.
The 8-K filing further revealed that not only had Gillespie convinced Equatorial Guinea to hand over up to 15% of the areas it chose as a result of completing the survey, but to also help the government rewrite its mining laws, which were put into place shortly after declaring its independence from Spain in 1968.
In a telephone interview in which Gillespie described Sillenger’s land claims management process he stated that, “A lot of countries have old, outdated laws and they need to bring them into the 21st century if they expect to development their resources.”
“We’re experts at managing, that’s what this whole program is about,” Gillespie explained. “The key is the partnership with [any] developing country to become their marketing arm for exploration and licensing, that’s exciting,” he noted. “It’s what Sillenger does!”
Similar Posts:
- Gold stocks poised for a come back
- Free Online Tax Filing Services for Last-Minute Tax Preparation
- Nissan launches electric car, commercializing demand for lithium
- Poll Shows Americans Are Hurting at the Pump
- Facebook Files for IPO and the Economy Shows Signs of Recovery
Tags: Equatorial Guinea, Guinea
Filed under Financial Tips |