Delta Minerals signs contract for geological survey in the Cagayan River

Manilla, 22 April, 2014 – Delta Minerals has agreed with the Governor of the Cagayan province, to investigate future extraction of minerals, sand and gravel in the Cagayan River. At a positive outcome, this would lead to a production agreement. Cagayan River is the largest river in the Philippines.  

The company has signed the first agreement for exploring rights of the Cagayan River to be followed by a final agreement. The agreement gives the right to explore the Cagayan River from Magapit and upstream; furthermore also for the rivers St. Ana, Abolog, Pamplona, Claveria and other tributaries. The company will immediately start surveying appropriate areas.

Cagayan River is the largest river in the Philippines located in northern Luzon, north of Vigan. It has a catchment area of, 27.281 km² and a length of 520 kilometre and flows north; from the inflow of Nueva Vizcaya to the estuary of the Babuyan channel in Aparri, Cagayan. Cagayan River has accumulated sand and sediment which have drastically worsened the river capacity. Although there are no typhoons in the province of Cagayan, it easily gets flooded, when heavy rainfall occurs in nearby upstream areas. The area usually flooded in the Cagayan River and its tributaries are an estimated 186,000 hectares and include 52 villages in the region. Especially villages with areas that are used for agricultural production are particularly impacted. This is an untenable situation with flooding along the Cagayan River with loss of life, livestock and crops.

"The company will get synergies by securing another river area and additional projects in our portfolio which will reduce vulnerability, in case we encounter problems in a specific area. The Cagayan River is larger and considered mineral richer than the Vigan River and we believe it will contribute significantly to the company future. We plan to commence the first surveys in Cagayan shortly", says Thomas Lundgren, CEO.

For further information, please contact
Hakan Gustafsson, Chairman of the Board, hakan.gustafsson@deltaminerals.se,
mobile + 46 70 00 35 268.
Thomas Lundgren, CEO, thomas.lundgren@deltaminerals.se , mobile+46  (0)703-97 25 24.

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