Update: Ansongo Manganese Project - Completion of Site Inspection for Due Diligence, Project and Transaction Summary

Crusher in foreground of Manganese Hill D at Ansongo (CNW Group/Transatlantic Mining Corp.)

Chinese Manganese Imports and Mn Content & Crude Steel Production (CNW Group/Transatlantic Mining Corp.)

Source: Mali Manganese S.A. (CNW Group/Transatlantic Mining Corp.)

VANCOUVER, March 5, 2014 /CNW/ - Transatlantic Mining Corp (TSX.V: TCO) ("Transatlantic") is pleased to announce that together with technical consultants Coffey International it has recently completed a successful site visit to Ansongo for due diligence purposes. It would also like to summarise the project and key terms of the proposed transaction.

Project Summary

Investment
Opportunity
  • Fully Permitted Mine
  • Offtake Partners in Place
  • Transatlantic has option to acquire up to 70% of the project, making it majority owner of one of the world's largest high grade Manganese deposits
Backed by Strategic
Investors
  • POSCO, the world's 5th largest steel producer with 39.9 million metric tons of steel production in 2012
  • Hengxing, a leading Chinese Manganese importer that consumes approximately 800,000 metric tons of imported Manganese ore per annum
  • Element Commodities, a Hong Kong based Commodity Trading House with international expertise in the sales and distribution of steel related raw materials
World Class
Manganese Project
  • Previous production with existing stockpiles at site
  • Exploration upside with eight observed outcropping hills (up to 100 metres in height) over 25km structure, six are along strike of main deposit yet to be drilled
  • 30 year Exploitation License (from 15/07/2011) over 212 km 2 tenement 

Road, Rail & Port Infrastructure

Road/Rail
  • All year round road access & Multiple routes to market
  • Ansongo to Niamey Dry Port 346kms
  • Ansongo to Burkina Faso rail spur 400kms
  • Very good quality road to Ansongo (built by European Union)
Low Cost
Trucking
  • Low cost trucking due to backhaul logistics
  • 2 million metric tons per annum of freight capacity returning to port from Niamey*
  • Approximately ~US$130/Mt from Ansongo to CIF China for scaled production (includes material handling, port, shipping and insurance).
  • Current price for 44% Manganese is $250 per ton approximately.
Future
Infrastructure

Source: CAT Logistics Study

Favourable Manganese Market Outlook

Key Steel Making
Additive
  • ~94% of global Manganese mine output is used to produce Manganese ferroalloys, which are consumed in steel making*
  • No practical substitutes*            
Highly Strategic
  • From the steel producers perspective, security of supply of Manganese ore is more important than price - as distinct from iron ore
  • Manganese content in steel ranges from 1-10%
  • Consequently price dynamics can be volatile (e.g. Post GFC period prices peaked in mid-2010 at US$360 per ton for 45% Manganese product)
Concentrated Market
Structure
  • Top 5 producing nations* have a market share of 86% into China (Jan-Dec 2013) and 88% into India (Jan-Oct 2013).
  • South Africa Manganese supply growth has loomed for some time however infrastructure capacity remains unsupportive of material growth

*Manganese Institute
**Australia, South Africa, Ghana, Gabon & Malaysia.

Road, Rail & Port Infrastructure Continued

Access to Four Main
Ports
  • Lome (Togo) and Abidjan (Cote d'Ivoire)
  • Tema (Ghana) and Porto Novo (Benin)
Each Port Offers
Container and Bulk
Shipment Alternatives
  • Containers enable small shipments for premium pricing to small smelters
  • Ability to bulk-ship with Panamax Vessels (typically DWT of 65,000 - 80,000 tonnes).
  • Previously shipped 70kt Mn through Lome Port and 40kt Mn through Abidjan port
  • Possible regional synergies with neighbouring projects (Tambao)
 

Investment Summary

Transatlantic will pay Tassiga Ltd (subject to shareholder approval) US$3.5m in cash and issue to Tassiga 35 million shares, and an option to purchase an additional 5 million shares for a consideration of CAD$1 at such time as the price of Transatlantic's common shares trading on the TSX Venture Exchange is CAD$0.50 per share for at least 10 consecutive trading days.

As consideration Transatlantic will receive:

  • An initial 30% interest in the project,
  • A 2% royalty on all production from the project,
  • A 3 year option to acquire a further 40% interest in the project (with the option exercise price being pro rata 2 million Transatlantic common shares for every 1% of the project, or equivalent cash consideration if mutually agreed),
  • Management control of the project.

Recent due diligence conducted by Coffey International including a site visit and sampling has confirmed the potential of historical resource estimates. A follow-up drill program has been prepared and budgeted accordingly.

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About Transatlantic Mining Corp

Transatlantic Mining Corp. is a mineral exploration company focused on becoming the next diversified industrial metal producer. The Company's holdings include an 88% interest, in the Gnaweeda Gold Project in Western Australia, an option to earn an 80% interest in AMCOR's Monitor Copper, Gold and Silver project in the Coeur D'Alene Mining District in Idaho and an option to earn up to 70% of the Ansongo Manganese Project in Mali, West Africa.

On behalf of the

Board of Transatlantic Mining Corp.

(signed)

Aidan Nania

Director and CEO

SOURCE Transatlantic Mining Corp.

Image with caption: "Crusher in foreground of Manganese Hill D at Ansongo (CNW Group/Transatlantic Mining Corp.)". Image available at: http://photos.newswire.ca/images/download/20140305_C9473_PHOTO_EN_37613.jpg

Image with caption: "Chinese Manganese Imports and Mn Content & Crude Steel Production (CNW Group/Transatlantic Mining Corp.)". Image available at: http://photos.newswire.ca/images/download/20140305_C9473_PHOTO_EN_37614.jpg

Image with caption: "Source: Mali Manganese S.A. (CNW Group/Transatlantic Mining Corp.)". Image available at: http://photos.newswire.ca/images/download/20140305_C9473_PHOTO_EN_37615.jpg



For further information:

Contact Transatlantic Mining Corp. at (604) 424-8257