Cougar Metals NL
(ASX:CGM) says it has entered into a memorandum of understanding with a privately owned mineral resources company to provide 75,000 metres of surface drilling at the resource company’s magnetite project in Uruguay.
The drilling program is scheduled for completion by December 31, 2010 and is expected to generate US$7 million in additional revenue for the company.
In order to complete the work the mineral resource company has agreed to advance Cougar US$2 million by way of an interest free loan to acquire the drilling rigs needed.
Cougar Metals says the drilling program provides further exposure to the iron ore sector in South America and underpins a major expansion of the company’s drilling business.
The company says it will pursue a number of new tenders during 2010 that will offer further opportunities for growth.
Cougar Metals posted a loss for the 2009 financial year.
