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| Index > Projects > Tampakan > Ownership |
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Title to the Tampakan Project is under an FTAA with the Government of the Republic
of the Philippines . This is a partnership which allows
the Government to take a pre-determined share of project
cash flow once development capital is paid back.
FTAA's have a fixed term of 25 years and an option to extend for a further 25 years. The original title to the FTAA was granted to WMC Philippines Inc ("WMCP"). in March 1995 covering an area of approximately 900 square kilometers and has been subject to statutory reductions in area since that time.
As at 1 January 2006, the area held under what is known as the Columbio FTAA was 288 square kilometers. The title to the Tampakan FTAA was formally transferred in August 2002. A contiguous FTAA application (Hillcrest) covering an area of 259 square kilometers forms part of the project area (Fig. 1).
Indophil Resources Phils. Inc. is a Philippine incorporated and unlisted entity through which Indophil and its Philippine partners, Alsons Corporation ("Alsons") and the Tampakan Group of Companies (" TGC ") hold their respective interests in the project. The TGC were original claim owners that held preferential rights to the Tampakan Project area prior to the granting of the Columbio FTAA.
Indophil manages all project activity and its associates providing technical and financial assistance. Indophil holds 40 percent equity and through a series of agreements with that company has acquired rights in the Tampakan Project that entitle the Company to proceeds from future mine production less certain payments, dividends and royalties that equate to 1.5% of the gross income.
Further, Indophil has finalised an option agreement with Xstrata Queensland Limited ("Xstrata") that allowed Xstrata to purchase a percentage of Indophil's rights in the project for pro-rata sunk costs and a premium. The beneficial ownership interest in the project is now Xstrata 62.5% and Indophil 34.1% with arrangements in place to lift that stake to 37.5%. |
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| Disclaimer | © 2008 Indophil Resources NL |
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