May 18 (Reuters) - Authorised Investment Fund Ltd AIY.AX :
* Company has reached an agreement in principle with peter j. sterling
* Says serial funds required for the project are expected to amount to around
$2 million
* Says new Australian company will be formed with aiy as a 20% owner of the
project
* Says agreement will result in aiy having a 20% interest in the hi-tech
research and development project
* Source text for Eikon ID:nASXFSd57