The King-King Copper-Gold Project is held in a Mineral Production Sharing Agreement (MPSA#009-92-XI, approved by the government May 27, 1992 and amended December 11, 2002) by The Philippine Government, NADECOR (Nationwide Development Corporation), and Benguet Corporation.
The MPSA grants the parties to the MPSA the exclusive right to explore, develop and exploit minerals within the area comprising the King-King deposit.
The deposit size depicted in Figure 1-1 below is 2.5 square kilometers and the area of the Mineral Property in the MPSA is 15.5 square kilometers (see Figure 4-2). There is a memorandum of understanding (MOU) between NADECOR and St. Augustine Mines Ltd., a subsidiary of Russell Mining and Minerals, Inc. (RMMI), that provides for formation of a Joint Venture (JV) once Benguet Corporation is eliminated from the MPSA.
Under the MOU, RMMI retains the exclusive right to develop the project through itself or an associated entity. Ratel and RMMI have agreed to complete a Share Exchange Agreement wherein Ratel will gain 100 percent control of SAML and RMMI will be compensated in Ratel equity.