REGARDING CERRO SUR PROJECT, CHILE
London, 1 June 2001
Billiton Plc announces that its subsidiary Billiton Chile BV has agreed the
terms of an option agreement with Latin American Copper plc ("Latin American
Copper") regarding its Cerro Sur Cu-Au project near Copiapo, Chile.
The agreement takes the form of an exploration option over an area of
approximately 30 km2. Previous work by Billiton in the area suggests
potential for copper-iron-gold mineralisation of an affinity similar to that
of the nearby Manto Verde and Candelaria Cu-Au deposits.
Under the terms of the option, Latin American Copper may earn a 70% interest
in the property from Billiton by investing a total of US$1.25 million in
exploration work over a four-year period, including an initial US$100,000
during the first 12 months. In addition, Latin American Copper will issue
Billiton 500,000 units comprising one common share and a full purchase
warrant over a period of four years, of which 100,000 units will be issued
on signing of the formal agreements. Billiton will retain a Back In Right to
earn an additional 40% interest in the property (for an aggregate 70%
interest).
The deal is subject to board and regulatory approvals.
Commenting on the agreement, David Whitehead, Billiton Chief Executive,
Exploration and Development said, "We believe that this part of northern
Chile is very prospective for additional Cu-Fe-Au deposits of a type similar
to the Candelaria deposit. Billiton commends Latin American Copper's efforts
in the region thus far and looks forward to the results of the planned drill
program".
Ends
Michael Campbell
Manager Corporate Affairs
Billiton
Tel:         +27 11 376-3360
Fax:         +27 11 376-3362
Mobile:      +082 458 2587
Email:       mcampbell@billiton.co.za
Website:  www.billiton.com