JOGMEC CONDITION PRECEDENT MET AND CORPORATE UPDATE
July 29, 2009
Amanta Resources Ltd. (the “Company”) is pleased to report that further to the News Release dated April 15, 2009, the Condition Precedent, contained in the Joint Exploration Agreement (JEA) between Amanta and Japan Oil Gas and Metals National Corporation (JOGMEC), has now been satisfied. Accordingly, JOGMEC will now commence funding of the Luang Namtha copper exploration project, in northern Laos, under the terms of the agreement.
Joint Exploration Agreement. Under the terms of the JEA, JOGMEC has been granted an Option to acquire a 51% joint venture interest in the Luang Namtha project, by investing a total of USD$ 3 million, prior to March 31, 2012. Amanta will act as the Project Operator and will earn a fee of up to 10% on project expenditures.
JOGMEC may terminate its interest at any time after it spends a minimum of USD$ 800,000 and will not earn any interest unless it completes the USD$ 3 million investment and exercises its Option, following which the parties will contribute pro-rata to ongoing project development costs.
The Luang Namtha project covers an area of 200 km2 and is located in the Province of Luang Namtha, northern Laos, some 600 kms from the capital city, Vientiane. Geologically the area forms part of the Luang Namtha-Yulong porphyry and polymetallic belt, a continental collision zone in which a large number of economic mineral deposits are known, the largest amongst these being the Yulong porphyry deposit, in eastern Tibet, China, which hosts some 600 million tons at approximately 1% copper.
Amanta signed an Exploration and Development Agreement with the Lao PDR government in June 2008, becoming the first Canadian company to acquire such a concession, and has been active on the project since July, 2008.
To date, Amanta has completed wide-ranging surface (rock chip) and stream sediment sampling programmes and identified a number of strong targets for detailed exploration programmes.
Large extents of the area are underlain by Paleozoic volcanic rocks in which high grade copper-silver mineralization occurs. In one such area, the Pakieng area, outcropping mineralized rocks can presently be seen to encompass some 6 km2. From this area rock chip samples have yielded assay values of up to 6% Cu and 13 oz/t Ag, as well as molybdenum values of up to 0.8%, with minor associated gold.
The Pakieng area will be the focus of most of the 2009-10 field programmes. These programmes include detailed grid mapping and sampling and extensive ground geophysical IP/Resistivity work. The Company aims to delineate in this manner the most significant drill ready resource areas so that a drill programme can be designed for the next field season.
Outside of the Pakieng area, reconnaissance work has uncovered several other similarly mineralized locations over which detailed mapping and sampling has yet to be completed. So far all high grade mineralized material has been found to occur in intermediate volcanic rocks but the exploration area also yields porphyritic intrusive occurrences, some of which have been observed to be mineralized with chalcopyrite. Further detailed work over these targets has been planned for the ongoing and the next exploration phase.
Sole focus on copper, in Laos. With the commencement of the JEA, Amanta’s Board of Directors has decided to focus its ongoing activities solely on copper exploration in Laos, and will continue to assess additional acquisition and development opportunities in the country. The Company is now considering ways to divest its tungsten and gold interests, in Thailand, to raise additional development capital.
Non-brokered private placement. Further to the recent completion of an initial tranche of a non-brokered private placement, Amanta now proposes to complete an additional private placement of up to 7,000,000 units at a price of $0.07 per unit for gross proceeds of up to $490,000. Each unit will consist of one common share plus one half of one common share purchase warrant.
Each whole share purchase warrant will entitle the holder to purchase one additional common share at a price of $0.12 for a period of 12 months from closing, or at a price of $0.15 for a period of a further 12 months thereafter. A finder’s fee may be paid on all or a portion of the placement.
Net proceeds from the private placement will principally be used for expenses associated with the ongoing development of the company’s activities in the Lao PDR, including possible future acquisitions, and for general working capital. The private placement and finder’s fee are subject to TSX Venture Exchange acceptance.
Amanta Resources Ltd. is a junior exploration company presently focused on the mineral exploration and development of the Luang Namtha copper concession, in Laos. The Company also currently holds 100% interests in the Langu gold project and the Mae Lama and Mae Chedi tungsten projects, in Thailand.
on behalf of the board of
AMANTA RESOURCES LTD.
“Gerald D. Wright”
Gerald D. Wright,
President
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
