NICOSIA, Cyprus, Jan. 16, 2012 /CNW Telbec/ - EMED Mining Public Limited
(AIM: EMED) (TSX: EMD) ("EMED Mining" or "the Company"), the
Europe-based minerals development and exploration company, announces
today the following operational update for the three-month period ended
31 December 2011. The full Quarterly Report, including consolidated
Financial Statements and the Management Discussion and Analysis, will
be issued on or before 31 March 2012.
Managing Director Harry Anagnostaras-Adams will be hosting an on-line
investor briefing at 15:00 GMT (10:00 am Toronto time) on Tuesday 17
January, which will be broadcast live via video conference. To
participate in the conference, during which participants will be able
to email questions, attendees should go to www.presentation-matters.co.uk/emedwebstream
Rio Tinto Copper Mine - Spain
The Junta de Andalucia (the "Government") has made public policy
statements that clearly confirm support for the Company's plans to
restart the Rio Tinto Mine as soon as possible, including that it wants
the project to be triggered in Q3 2012, the same target date as EMED
Supportive public statements include that it is satisfied with the
Company's constructive approach to resolving outstanding issues, and
with its technical and economic competencies - the criteria for
approval of its administrative standing.
The Company has responded to all queries and requests from the
Government regarding permitting. These responses have addressed all
matters raised. The Company has also undertaken to provide independent
expert reports on sensitive areas such as the optimisation of waste and
tailings management and storage.
The Government has taken initial steps to demonstrate its commitment to
administer permitting and access to third-party lands, whilst ensuring
proper handling of third parties' rights and full regulatory
compliance. The judiciary has dismissed all legal challenges filed by
the former project operator and adjoining landowners against the
Company's plans. Any challenges yet to be heard are considered to be
frivolous, are expected to be dismissed by the judiciary, and have no
bearing on the project.
An agreement was executed with project vendor MRI Holding ("MRI") giving
the Company rights to a number of mineral concessions adjacent to the
Rio Tinto Copper Mine site. This provides exploration potential which
will potentially aid the Company's objective to extend project life.
Detva Gold Project - Slovakia
The approvals process continues for the proposed open-pit mine at Biely
Vrch and includes stakeholder consultations. It is currently envisaged
that the project will produce ~60,000 ounces of gold per year at an
average cash cost of ~US$530/ounce but the Company intends to further
optimize the pit design.
EMED Mining is engaging with a range of banks, potential product
customers, royalty funds and equity investors to optimize financing of
the production start-up in Spain. Short-listed parties have provided
indicative terms sheets which include proposals for full funding of
Resource Capital Funds and RMB Australia Holdings have exercised their
right to convert the amounts owed to them under the secured convertible
loan agreement dated 4 March 2009 into new ordinary shares at a price
of 4.13 pence per share. Accordingly, the outstanding principal amount
owing under the Loan Agreement of US$8.5 million has been satisfied in
full by the issue of shares. RCF now owns 167.0 million shares and RMB
67.5 million shares, 18% and 7% respectively of the fully-diluted
shares on issue.
Dr. Jose Nicolas Sierra Lopez has joined the Board of EMED Mining as
non- executive Director based in Madrid. Dr. Sierra (aged 73) brings to
the Company extensive experience as a mining and energy leader in the
business and government sectors, formerly as Spain's national Director
General of Mines and Construction Industries, and the EU's Director for
Mr. Robert Francis has joined the Board of EMED Mining as a
non-executive director based in Canada. Mr Francis (aged 66) is a
retired senior partner of the Toronto office of Deloitte & Touche LLP,
having enjoyed an extensive career in public accounting in Canada. He
provided a complete range of services to the metals/mining sector and
advised extensively on corporate regulatory compliance matters.
Harry Anagnostaras Adams, Managing Director of EMED Mining, commented:
"EMED Mining enters 2012 full of optimism regarding the permitting and
start-up of the Rio Tinto Copper Mine. We look forward to restarting
this major copper mine and greatly appreciate that we have earned
public declarations of support from the Andalucian Government, all
political parties, unions and municipal councils.
"We are committed to the timetable that aims to trigger the restart
during Q3 2012, followed by a ramp-up to target steady-state production
of 9 million tonnes of ore per annum and concentrate containing 82
million pounds of copper in 2014.
"The Company's teams are making steady progress on all aspects of
permitting, legal, finance and project planning of start-up and
expansion. In mid-2010 we lodged full submissions covering all
operational and environmental aspects of restarting Rio Tinto. Between
April and November 2011 there has been a series of requests from the
Government. Having submitted our various responses, the substantive
issues still on the table relate to waste and tailings management. We
feel confident that our plans satisfy all local, European and
international standards. Nevertheless EMED has commissioned independent
specialist reviews on those aspects because we are committed to
providing and demonstrating the best possible solution that balances
environmental, economic and operational criteria.
"Two key steps need to be completed during Q1 2012 in order to be able
to trigger the restart of this major copper mine during Q3 2012. The
first is the transfer of the mineral rights (Administrative Standing)
which will enable EMED Mining to utilize third-party owned land that is
required for the project. We believe that EMED Mining, based on its
legal, technical and economic capacities, has satisfied the tests for
this first step. The second step is for the technical teams of the
Government and the Company to agree the remaining unresolved
environmental aspects so that detailed engineering and final
documentation for the entire project can proceed, be assembled,
submitted and duly processed.
"Our plans for the Rio Tinto Copper Mine are in full compliance with
European Union standards and embrace a vision that comprises the
concepts of sustainability and environmental stewardship.
"We have also been laying the foundations for commencement of
brownfields exploration programs which have the potential to expand
mineral resources and extend project life which is of paramount
importance to all stakeholders."
SOURCE EMED MINING PUBLIC LIMITED
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