Mindoro Resources has reached agreement with Delta Earthmoving to explore and possibly develop a new nickel laterite prospect in the southern part of the Agata project, Surigao District, Mindanao, Philippines.

"We would not be able to advance the southern Agata nickel laterite for quite some time. This agreement gives us the opportunity to advance another nickel laterite prospect to production at no risk and cost, and the potential to share in significant cash flow."

An area of nickel laterite has been mapped at a reconnaissance scale in the southern part of the Agata project. No drilling or sampling has been carried out in this area.

Delta will at its sole cost and risk carry out exploration of the southern Agata nickel laterite and, if results warrant, within six months may select an area of up to 250ha to advance to production from a target area of 1800ha.

Delta will finance all mine development and production costs, as well as market the product. Delta will receive US$10.50 per wet metric tonne mining cost and 55% of net profits. Mindoro will receive 45% of net profits.