 | Magellan recently optioned three additional tenements for bauxite which are granted exploration licenses totaling 19,394 hectares which occupy upland plateaus near and adjacent to Magellan's Nhamunda license. The three properties; Nhamunda North, Aduaca and Japura were acquired through an option agreement with ASM, a private exploration company, whereby Magellan has an option to earn a 100% interest in the properties. Magellan has agreed to pay US$80,000, $90,000 and $100,000 for each respective license if quantities of bauxite are discovered within the respective license areas. At least one of the licenses must be evaluated within 18 months of the start of the contract. After 3.5 years, Magellan also agrees to pay ASM a total of US$0.15 per ton of bauxite outlined in the measured and indicated categories. Wide spaced reconnaissance auger drilling programs are planned on all three areas during the third and fourth quarters of 2008.
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