NICOSIA, Cyprus, Sept. 4, 2012 /CNW Telbec/ - EMED Mining ("EMED Mining" or "the Company") (AIM: EMED) (TSX: EMD), the Europe-based minerals development and exploration company, is pleased to announce that it has, during August 2012, maintained progress within the timetable targeting production start at end 2013. The Company's progress comprised the following achievements:
- Taken possession of all lands required for initially planned 14-year operations based on Measured and Indicated Resources of 933,000 tonnes of contained copper (203 million tonnes of ore at 0.46% copper) and Proven and Probable Reserves of 606,000 tonnes of contained copper (123 million tonnes of ore at 0.49% copper) at the Cerro Colorado Open Pit;
- Purchased options over additional lands exercisable within 4 years, that could be used for waste deposition to service potential expansion of the reserves of the Cerro Colorado Open Pit and potential development of the other copper deposits at Rio Tinto;
- Replenished corporate treasury for the €6 million of cash expended on land purchased during the past two months, by concurrently completing equity placements of €8.6 million ($10.7 million or £6.8 million) to existing shareholders;
- Aligned the interests of the vendors of the acquired lands with those of EMED Mining by agreeing that most of the purchase consideration be in the form of €8 million of EMED Mining shares which are restricted pending project permitting plus €11.5 million of deferred cash amounts payable primarily from production over the next 12 years;
- Increased the product allocation to cornerstone customers Yanggu Xiangguang and Goldman Sachs to an aggregate of approximately 45%, depending on future market prices, of initially planned production from current ore reserves;
- Completed responses to requests received to date from the regulatory authorities pending receipt of their formal reports flowing from the public comments on our environmental plans and from the central government technical agency reviews of our project development and operations plans;
- Advanced the detailed drafting of project funding arrangements with principal financier Goldman Sachs in preparation for when permitting conditions are confirmed;
- Advanced the detailed engineering of project capital works with construction management contractors Merit Consulting, in readiness for approval at the end of 2012 to trigger the work required to restart production from the Rio Tinto Copper Mine by the end of 2013; and
- Prepared the triggering of certain longer-lead tasks in Q4-12, such as establishing the personnel training schemes and conditionally awarding the largest individual contract for modernisation works for the process plant. The Directors will meet at site this month to consider such matters.
Harry Anagnostaras-Adams, Managing Director and CEO, said: "The recent land acquisitions were a watershed moment for restarting our Rio Tinto Copper Mine and have decisively advanced our path to production. The recent top-up of the treasury by shareholders is another example of the welcome support we continue to receive from shareholders for our development plans.
"We continue to make scheduled progress with regulatory authorities to facilitate their prospective approval of administrative standing along with the environmental and project plans in full compliance with local and international standards. Also, we have, as planned, advanced detailed engineering and finance documentation in anticipation of triggering project start-up at the end of 2012 for production at the end of 2013.
"We look forward to finalising our plans with the regulatory authorities so that we may proceed mobilize personnel, equipment and capital for the start-up of developmental and environmental works as well as to start the drilling programs to extend the project life well beyond the initially planned 14 years. We will pursue expansionary growth with an aggressive exploration drilling program across our underdeveloped 100%-owned properties in Spain."
|EMED Mining||Harry Anagnostaras- Adams||+357 9945 7843|
|RFC Ambrian||Stuart Laing||+61 8 9480 2500|
|Fox-Davies Capital||Simon Leathers||+44 203 463 5022|
|Fairfax I.S. PLC||Ewan Leggat/Katy Birkin||+44 207 598 5368|
|Bishopsgate Communications||Nick Rome||+44 207 562 3350|
|Proconsul Capital||Andreas Curkovic||+1 416 577 9927|
Qualified Persons for Mineral Resources and Reserves
EMED Mining's Mineral Resources and Reserves have been estimated and reported in accordance with the standards of Canadian National Instrument 43-101("NI 43-101") and the Canadian Institute of Mining, Metallurgy and Petroleum. Mineral Resources are reported inclusive of Mineral Reserves.
The Qualified Persons who supervised the preparation of Mineral Resources and Reserves for the Rio Tinto Copper Mine are detailed in the NI 43-101 Technical Report titled "Amended and Restated NI43-101 Technical Report on Reopening the Rio Tinto Copper Mine Huelva Province, Spain", dated 17 November 2010.
The disclosure in this announcement has been compiled and approved by Mr. Ron Cunneen, BSc (Geology), Member of The Australian Institute of Geoscientists, who is employed by EMED Mining as Head of Exploration. Mr. Cunneen has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which is being undertaken to be a Qualified Person pursuant to NI 43-101.
SOURCE: EMED MINING PUBLIC LIMITED
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