Exchange: TSX V Symbol: BEL
VANCOUVER, Oct. 9 /CNW/ - Belvedere Resources Ltd. BEL:TSX-V
("Belvedere") is pleased to announce that it's 100% owned subsidiary Finn
Nickel Oy has acquired the Luikonlahti mill and concentrate facility from talc
producer, Mondo Minerals Oy of Finland.
The Luikonlahti facility is located in eastern Finland, close to a number
of Belvedere's 100% owned nickel projects in the Outokumpu and Kotalahti
mining districts. The deal consists of 35 hectares of land and buildings, a
valid mining lease, tailings dam, and an assay laboratory. David Pym, CEO
comments, "This acquisition represents a significant step in expanding
Belvedere's production capacity. The mill is ideally located for processing
ore from Belvedere's eastern Finland operations, has been well maintained and
is in excellent condition. The tight supply of processing equipment globally,
means this acquisition adds substantial value at low cost to the company, and
enables the fast-track commissioning of our second production centre in
The Luikonlahti concentrate facility was commissioned in 1968 with a
nominal capacity of 500,000 tonnes per annum of copper-cobalt-zinc ore. Mondo
Minerals Oy purchased the facility in the early 1980's, and converted it to
talc-nickel production. At this time, one of the 3 mills was removed leaving a
capacity of 200,000 tonnes per annum talc ore. The Luikonlahti mill was in
production until December 2006, and since then the facility has been under
care and maintenance.
The purchase price is (euro)1.2 million (approx. $C 1.68 million) plus
VAT, with an additional payment of (euro)300,000 (approx. $C 420,000) plus VAT
conditional on the awarding of an environmental permit for continuation of
operations on site. Should production commence on site, a royalty is payable
on the first 7000 tonnes each of nickel and copper produced in concentrate.
The royalty commences from 0 euros/tonne at a nickel price of 12,128 USD/tonne
and increases linearly up to a maximum of 410 euros/tonne at a price of 29,700
USD/tonne. In similar fashion, the copper royalty commences at a price of
3,528 USD/tonne and increases linearly up to a maximum of 94 euros/tonne at a
price of 7,667 USD/tonne. The royalty is payable until aggregate metal
contents are reached or December 2013, whichever is the sooner.
Belvedere Resources Ltd. is a publicly-listed resource company engaged in
the business of nickel production and exploring, discovering and developing
mineral wealth in Finland. Belvedere currently produces 2,200 tonnes annually
of payable nickel metal in concentrate from its 100% owned Hitura Nickel Mine
in Western Finland.
Forward Looking Statement:
Some of the statements contained herein may be forward-looking
statements, which involve known and unknown risks and uncertainties. Without
limitation, statements regarding potential mineralization and resources,
exploration results, and future plans and objectives of the Company are
forward looking statements that involve various degrees of risk.
Forward-looking statements in this release include statements regarding any
future production of concentrate at Luikonlahti, from any of its projects. It
is important to note that the Company's actual results could differ materially
from those in such forward-looking statements.
This statement is prepared by Dr. Toby Strauss, who is acting as
Qualified Person in compliance with National Instrument 43-101 with respect to
SOURCES LTD. David Pym, CEO
Suite No.404, Vancouver World Trade Centre
999 Canada Place, Vancouver. BC.
V6C 3E2, Canada
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of the contents of this news
For further information:
For further information: please contact David Pym (CEO) or Toby Strauss
(COO) at (604) 844-2838 or visit www.belvedere-resources.com