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Argosy Mining Announces Musongati Mining Convention Ratified by Government
Business Wire, March 17, 1999
VANCOUVER, BRITISH COLUMBIA--(BUSINESS WIRE)--March 17, 1999-- Argosy Mining Corp. (VSE:AGO) is pleased to announce that on March 12, 1999 the National Assembly of Burundi ratified the Mining Convention negotiated by Argosy's wholly-owned subsidiary, Andover Resources N.L., regarding development of the Musongati nickel-cobalt laterite deposits.

Ratification was the last stage of the approval process giving Andover exclusive rights to the deposits. A 3-year exploration license will now be granted.

The Mining Convention is a comprehensive state agreement that not only awards mineral rights to the Company, but sets out a work program and a full taxation framework for a mining operation.

During the 3-year exploration period, geological and engineering studies will be completed, leading to a full project feasibility study. Upon completion of the feasibility study, the agreement provides for the awarding of a mining title known as a Mining Concession. The term of the Mining Concession is 25 years, renewable twice for successive periods of 10 years.

The Mining Convention provides the project with a well-defined legal and fiscal basis to proceed with exploration and development. It also shows the pro-active role the government is taking toward the development of a broad economic base through strategic foreign investments. Mr. Yale Simpson, CEO of Argosy states, "The importance to Argosy of a state mining agreement for the Musongati project, ratified by the full National Assembly, cannot be under-estimated. In many developing nations, the rules governing mining and foreign investment are inadequate and discretionary. In the case of Burundi, the government and the National Assembly have provided the investor with the highest level of certainty available, ensuring a fiscally attractive and legally secure basis to proceed with the project."