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Gold/Mining/Energy : ANATOLIA MINERALS CORP...AMCD.U/CDN

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To: Stew who wrote (36)10/7/1998 8:37:00 PM
From: Mr Metals   of 39
 
****NEWS ITEM****

Anatolia Minerals Development Ltd AMCD.U
Shares issued 19,900,000 1998-10-05 close $0.18
Wednesday Oct 7 1998

ANATOLIA MINERALS DEVELOPMENT LIMITED
CORPORATE REVIEW AND UPDATE


ANATOLIA COMPLETES $1.5 - MILLION FINANCING BY RIO ALGOM AT US$0.85/SHARE; INITIATES JOINT EXPLORATION OF TURKISH GOLD AND BASE METAL PROJECTS. DRILLING RECOMMENCES IN EARLY OCTOBER
October 6, 1998 CDN: AMCD.U
Although many institutional investors have fled from the exploration business, the international mining majors are still paying for value when they see it. A good example of this is the recent transaction Anatolia Minerals Development Ltd. (AMDL; CDN:AMCD.U) completed with Rio Algom Ltd (Rio). Generally overlooked by the market, this was a solid transaction that establishes a sound financial base for AMDL's ongoing exploration programs.
Rio bought US$1.5-million of AMDL shares in a private transaction at US$0.85 per share. Of this amount, US$1.0-million is earmarked for early-stage exploration of its Yenipazar and Armutbeli gold/base metal prospects in Turkey over an 18-month 'pre-earn-in' period. Rio also has the right to buy an additional US$2.5-million of AMDL shares at 10% below then-current market price and possibly extend the "pre-earn-in" period by 12 more months. Rio has first right of refusal on most of AMDL's other projects over the same period.
Rio Algom structured and completed its private placement at US$0.85/share at a time when AMDL's market price was much lower, emphasizing the discrepancy in perception of values between the public market and Rio. Currently, AMDL has nearly $1.8 million cash in its treasury, or about US$0.09 cash per share, while its stock is trading at about US$.15 - .20 per share.
Should Rio elect to earn in to either or both properties, Rio must spend US$10-million per property to earn a 60% interest. Alternatively, at AMDL's option, Rio must spend an additional US$17.5-million and produce a feasibility study to earn a maximum 70% interest in each property selected. This gives AMDL a solid base and funding to develop its appealing projects. As an indication of Rio's confidence in AMDL's management, AMDL gets to be the operator until Rio earns a majority interest.
Here's why AMDL is well positioned and poised for advancement:
1. Following revisions to Turkey's mining law and tax structure favorable to foreign investment, AMDL acquired some of the best exploration positions in the country. Until recently, exploration by foreign companies had been mostly restricted to a few highly developed areas and/or the search for gold. Domestic development by private Turkish companies has been focused almost entirely on deposits that can be mined and shipped 'as is', i.e., 'outcrop mining' of direct shipping ore, much of which is smelted without any upgrading at all. Many offer opportunities not seen in the U.S. in this century. AMDL holds over 1.7 million hectares in Turkey with potential unexplored by modern techniques. This includes nine major project areas with known mineralization, including:
(a) Yenipazar: 105,000 hectare polymetallic massive sulfide prospect in central Turkey. Large, strong geochem anomaly near ancient open pit coincides with strong IP and gravity. Four holes drilled at the edge of anomaly all hit near surface ore-grade material, averaging 51 meters of 2.5% base metals, 1.5 grams/t gold and 32 grams/t silver. Best interval is the last hole, a 200-meter stepout, with 78 meters of ore-grade rock, including top 14 meters at +5% base metals, 8.4 grams/t gold and 4.2 oz/t silver plus 20 meters of sulfides (122-142 meters) carrying +7% base metals, 2.2 grams/t gold and 1.5 oz/t silver. Intervening material is also mineralized. Preliminary metallurgy indicates excellent metal recoveries. Geophysics indicate mineralization increases to South. Ground EM has delineated conductors coinciding with and extending previously defined anomalies. Follow-up drilling is scheduled to begin the second week in October, with Airborne EM to follow in late October.
(b) Armutbeli: 35,000-hectare massive copper/gold replacements, gossans and shear zones in south central Turkey. Intense copper anomaly and gossan zone over 3 square km (up to 10%+ copper, 1.2 grams gold and 171 grams silver), underlain by very strong shallow gravity anomaly. Three dozen large gossans average 1.24% Cu, 0.2 grams/t gold, 8 grams/t silver. Seven recon samples of 2-kilometer-long shear zone ran 2-11 grams gold.
(c) Bulancak: 9,400 hectares in a rhyodacite dome near the Black Sea in north central Turkey. Square kilometers of VMS and stockwork base metals mined for over 4,000 years, with 12% copper shipped in the 1960's. Recon drilling and channel sampling gave +100 meters of 1% base metals and 3 grams silver. All four drill holes had ore-grade intercepts and averaged between 0.24% - 0.45% base metals.
(d) Saimbeyli/Tufanbeyli Zinc: 100,000 - 250,000 tonnes of +20% Zn and 3% Pb direct shipped over the past 20 years. Both structurally controlled and Irish/MVT replacement type mineralization in a large sedimentary basin, with widespread zinc and very large potential. Surface-mined for decades, but essentially unexplored. Several majors have shown interest in joint-venturing this property.

2. AMDL's strong management team is headed by Dick Moores who, prior to forming AMDL, brought two major copper projects into and co-founded AZCO Mining (AMEX:AZC). Later, he identified and obtained financing for a major Mongolian copper SXEW project.
3. AMDL was financed at US$0.60 24 months ago and at US$0.50 last fall. The CDN closing price for AMCD.U on October 5th, was US$0.18, up from US$0.10 on September 15th. A very weak market for mining stocks, coupled with redemption pressures on institutions holding AMDL stock forced the price way down. Institutional selling seems to have dried up and AMDL's price has recently started to recover.
4. AMDL currently has 19.9 million shares outstanding (23.1 million fully diluted), and has approximately US$1.8-million in cash. Management says AMDL is well financed for the next year and a half, giving AMDL time to advance and add to the current portfolio of projects.
5. Rio Algom has the right to add a member to AMDL's Board of Directors. AMDL's Board has recently been strenghthened by the recent addition of Timothy J. Haddon. Mr. Haddon, President and CEO of Archangel Diamond Corp., is also the former president of AMAX Gold.

For more AMCD.U corporate information,
call George Duggan: (818) 542-6880.



(c) Copyright 1998 Canjex Publishing Ltd. canada-stockwatch.com

Mr Metals
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