Elemental Minerals Review of Operations for the Quarter Ended 30 September 2013

PERTH, Australia, Oct. 31, 2013 /CNW/ - Elemental Minerals Ltd. (ASX, TSX: ELM) ("Elemental" or "the Company") is pleased to provide the following quarterly update on its activities, including at its Sintoukola Potash Project located in the Republic of Congo ("RoC").

Dingyi Offer

During the quarter, Bidder's and Target's Statements were issued in relation to the off-market takeover offer for all of the fully-paid ordinary shares of Elemental ("Dingyi Offer") by Dingyi Group Investment Limited ("Dingyi"), a company incorporated in Bermuda and listed on The Stock Exchange of Hong Kong Limited ("SEHK").

As previously announced, the Dingyi Offer remains conditional upon Dingyi obtaining the approval of its shareholders at a special general meeting of Dingyi (see section 5.2 of Elemental's Target's Statement for more details) and certain other conditions.

This approval is required under the rules of the SEHK.  The applicable procedural requirements (including the level of disclosure required) and the timing to obtain the relevant shareholder approval depend on the vetting process of announcement by SEHK. As at the date of this update, Dingyi has addressed a series of queries raised by the SEHK, and the announcement is still in the process of vetting by the SEHK.  Elemental has done all it can to facilitate Dingyi addressing the SEHK's queries.

The process of obtaining this regulatory approval has taken considerably longer than Dingyi, Elemental and their respective advisers initially expected. Dingyi and Elemental have worked constructively and diligently together to satisfy the information requests and remain committed to achieving a quick resolution, so that the transaction can progress.

If the SEHK clears the announcement and classifies the transaction as a 'very substantial acquisition', Dingyi will lodge a detailed shareholder circular (including a technical report and a valuation report on the Sintoukola project) (Dingyi Circular) for approval by the SEHK. The vetting of a circular in respect of the transaction may take one to two months but this review period can be considerably shorter. Elemental will strive to expedite the process and will assist Dingyi during this vetting process as required. Following approval of the Dingyi Circular, the Dingyi shareholders meeting will be convened.

To be passed, the Dingyi shareholder approval requires a majority of over 50% of the votes cast at the meeting to be in favour of the transaction.  Elemental notes that Wincon, Dingyi's controlling shareholder holding 50.3% of the voting shares in Dingyi, has entered into a voting undertaking in favour of Dingyi to vote in favour of the resolution unless the SEHK determines that it is not permitted to vote.

For further information see section 5.2 of the Target's Statement and section 8.12 of Dingyi's Bidder's Statement.

Given the delay in obtaining the SEHK approvals described above, the parties are currently discussing proposed extensions to the transaction timetable. The Company will update the market in due course.

Geology and Mineral Resources

No fieldwork was undertaken during the quarter or is imminent at present although a limited field programme has been planned for commencement once the convertible note funding is finalised. The capturing of borehole data from the recently acquired historic database continues. This data is being interpreted along with additional historic seismic data to guide future exploration programmes for the Hangingwall Seam Sylvinite.

Bankable Feasibility Study (BFS)

Technical Studies:

The final report for the plant modularisation study being conducted by AMEC on a modularized construction strategy for the process plant was completed and issued by AMEC during the quarter. The report defines the preferred modular approach for the process plant and sets out a revised implementation schedule for construction of the plant.

The study assessed the cost implications of the strategy as well as the impact on the implementation schedule and concluded that, while the additional cost would not be a prohibiting factor, the benefits of the strategy to the implementation timeline are limited. Once the implementation strategy has been defined, a decision will be made as to what extent modularisation will be applied.

No further work was done on the BFS during the quarter.

The land commission established in cooperation with the RoC Ministry of Land Affairs has completed its assessment of the land rezoning and associated compensation that is necessary for the mine, transport corridor and plant and port sites. The expected compensation is within the amount forecast.

Mining License:

On 15 August 2013, the Company announced the award of the mining license for the Sintoukola Project. The mining license includes the area containing the Mineral Reserves and Resources defined in the Company's Pre-feasibility Study, released in September 2012, and covers an area of 205 km2, approximately 15% of the existing Exploration License of 1,408km2.

Environmental and Social Impact Assessment ("ESIA"):

On 28 August 2013, the Company announced that it had received approval of its ESIA from the Ministry of Tourism and Environment in the RoC. The ESIA covers an area of 3,900 km2 and grants approval for all required construction and operational activities related to the Kola deposit over the life of mine. Further information regarding the ESIA is contained in the Company's announcement on 28 August 2013.

About Elemental Minerals

Elemental Minerals Limited (ASX/TSX: ELM) is an advanced mineral exploration and development company that aims to grow shareholder value through its 93%-owned Sintoukola Potash Project. The Sintoukola project has the potential to be among the world's lowest-cost potash producers and its strategic location near the coast of central Africa offers a transport cost advantage to key Brazilian and Asian fertilizer markets. For more information, visit www.elementalminerals.com

Mineral Resource Summary - Kola Deposit of Sintoukola Project1

  • The Sintoukola Project's Kola deposit contains 1.32 billion tonnes Measured and Indicated mineral resources with an average grade of 15.65% K2O (24.78% KCl), and Inferred Mineral Resources of 948 Mt grading 16.20% K2O (25.64% KCl), at a 10.0% K2O cut-off grade.
  • Within the Mineral Resources, the sylvinite portion contains 573Mt with an average grade of 20.92% K2O (33.13% KCl) within the Measured and Indicated category and 475Mt of Inferred Mineral Resources grading 20.39% K2O (32.27% KCl).
  • Four main potash mineralised seams are present within the Kola deposit and are identified in stratigraphic and chronological order as: Hangingwall Seam (HWS), Upper Seam (US), Lower Seam (LS), and the Footwall Seam (FWS). The depth to the top of the Upper Seam is within 250 to 320 metres from surface.
    • Exploration at Kola has focused on the Upper Seam and Lower Seams which contain the bulk of the Mineral Resources defined to date. The Hangingwall Seam was discovered in September 2012 and contributes 47Mt at an average grade of 34.75% K2O (55.01% KCl) to the Inferred Mineral Resources, and the Footwall Seam 225Mt grading 17.63% K2O (27.92% KCl) also in the Inferred category.
  • The Mineral Resources are reported in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves 2004 Edition (The JORC Code), which is consistent with Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Definition Standards 2005 and hence complies with NI 43-101.

Competent Person / Qualified Person Statement:

Information in this report that relates to Exploration Results or Mineral Resources is based on information compiled by Dr. Simon Dorling, Mr. Jeff Elliott and Dr. Andrew Scogings of CSA Global Pty Ltd, the Company's geological consultants. Dr. Dorling, Mr. Elliott and Dr. Scogings are members of the Australian Institute of Geoscientists (MAIG) and have sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity they are undertaking to qualify as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" (the JORC Code). Dr. Dorling, Mr. Elliott and Dr. Scogings are also Qualified Persons for the purposes of Canadian National Instrument 43-101 and they consent to the inclusion in this report of the information, in the form and context in which it appears. Mr. Elliott and Dr. Dorling have verified the exploration data disclosed in this news release.

Further information with respect to Elemental's Sintoukola Project is contained in a technical report entitled ''NI 43-101 Technical Report, Sintoukola Potash Project, Republic of Congo'' prepared for the Company by SRK Consulting (U.S.), Inc., CSA Global Pty Ltd., EGIS International and AMEC Americas, dated September  17, 2012 with an effective date of September  17, 2012 (the "Technical Report").  The Technical Report can be accessed on the Company's profile on SEDAR.

Forward-Looking Statements

This report contains statements that are "forward-looking". Generally, the words "expect," "potential", "intend," "estimate," "will" and similar expressions identify forward-looking statements. By their very nature, forward-looking statements are subject to known and unknown risks and uncertainties that may cause our actual results, performance or achievements, to differ materially from those expressed or implied in any of our forward-looking statements, which are not guarantees of future performance. Statements in this news release regarding the Company's business or proposed business, which are not historical facts, are "forward looking" statements that involve risks and uncertainties, such as resource estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements.

Investors are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date they are made.

1 For a full description of the resource refer to the NI 43-101 Technical Report, 17 September 2012 available on SEDAR, www.sedar.com

 

SOURCE: Elemental Minerals Limited

For further information:

Contacts: 
Iain Macpherson
Chief Executive Officer
Tel: +27 (0) 76 238 4461
iain.macpherson@elementalminerals.com

Ilja Graulich
Investor Relations Manager
Tel: +27 (0) 83 604 0820
ilja.graulich@elementalminerals.com

Johannesburg Office: +27 11 469 9140

Profil de l'entreprise

Elemental Minerals Limited

Renseignements sur cet organisme


FORFAITS PERSONNALISÉS

Jetez un coup d’œil sur nos forfaits personnalisés ou créez le vôtre selon vos besoins de communication particuliers.

Commencez dès aujourd'hui .

ADHÉSION À CNW

Remplissez un formulaire d'adhésion à CNW ou communiquez avec nous au 1-877-269-7890.

RENSEIGNEZ-VOUS SUR LES SERVICES DE CNW

Demandez plus d'informations sur les produits et services de CNW ou communiquez avec nous au 1‑877-269-7890.