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").
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
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
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
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
Bankable Feasibility Study (BFS)
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.
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.
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:
Chief Executive Officer
Tel: +27 (0) 76 238 4461
Investor Relations Manager
Tel: +27 (0) 83 604 0820
Johannesburg Office: +27 11 469 9140