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re: chinese exercise option - ramu is go!!! Sydney - Tuesday - Sept 27: (RWE Australian Business News) -
Highlands Pacific Ltd (HIG) reports that China Metallurgical
Construction (Group) Corporation (MCC) will exercise its exclusive right
to take up an 85% interest in Ramu nickel-cobalt project as provided in
the Master Agreement which was signed on March 30.
It is planned that the Ramu Joint Venture Agreement covering
MCC's involvement, negotiated at the same time as the Master Agreement,
will be formally signed by the parties in Port Moresby in October.
Under the Master Agreement and Joint Venture Agreement MCC has
the right to an 85% interest in the project.
Highlands Pacific will have an initial 8.56% carried interest in
Ramu, increasing to 11.30% at no cost to the Company after the debt for
the financing of the project has been repaid.
At this time Highlands will also have the option to purchase an
additional 9.25% in Ramu at market value, which if exercised would take
Highlands Pacific's total interest to 20.55%.
MCC is responsible for financing 100% of the project including
Highlands Pacific's equity (on a free carry basis) and arranging the
debt.
This means that the development of Ramu will be non-recourse to
Highlands Pacific.
MCC will manage the project and have the right to purchase 100%
of the nickel and cobalt produced on an arms length basis.
Resistance is being tested.

Ramu is a large "wet tropical" laterite nickel/cobalt project
located in the Madang Province of PNG.
The project is fully permitted.
The resource at Ramu is estimated at 143 million tonnes at 1.01%
nickel and 0.10% cobalt which gives a mine life of more than 20 years
based on forecast annual production of 33,000 tonnes of contained
nickel.