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Cadence Minerals Plc (KDNC) – Macarthur Minerals (TSX-V: MMS) Closes Fully Subscribed Private Placement.

Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to note the announcement today from Macarthur Minerals (TSX-V: MMS) (“Macarthur”) that it has closed the previously announced private placement offering (the “Offering”) of US$6 million of secured Convertible Note (“Note”) on conditional acceptance.

The total placement closed with subscriptions totalling 600 Notes for gross proceeds of US$6,000,000 with attaching warrant offered for one fourth of the Commitment amount.

All securities issued under the Offering are subject to a restricted (or “hold”) period of four months and one day following the distribution date of the Note and Warrant, under applicable Canadian securities legislation.

Cadence holds approximately 9.8% of the issued equity interest in Macarthur, which is an Australian mining exploration company focused primarily on iron ore, nickel, lithium and gold in Western Australia. It also has a lithium project in Nevada, USA.

The full release can be found at: https://web.tmxmoney.com/article.php?newsid=8438990672161293&qm_symbol=MMS

This news release is not for distribution to United States Services or for Dissemination in the United States. 

– Ends –

 

For further information:

Cadence Minerals plc                                                    +44 (0) 207 440 0647
Andrew Suckling  
Kiran Morzaria  
   
WH Ireland Limited (NOMAD & Broker)                                 +44 (0) 207 220 1666
James Joyce  
James Sinclair-Ford  
   
Novum Securities Limited (Joint Broker)                                 +44 (0) 207 399 9400
Jon Belliss  

 

 

Qualified Person

Kiran Morzaria B.Eng. (ACSM), MBA, has reviewed and approved the information contained in this announcement. Kiran holds a Bachelor of Engineering (Industrial Geology) from the Camborne School of Mines and an MBA (Finance) from CASS Business School.

  

Forward-Looking Statements:

Certain statements in this announcement are or may be deemed to be forward-looking statements. Forward-looking statements are identified by their use of terms and phrases such as ”believe” ”could” “should” ”envisage” ”estimate” ”intend” ”may” ”plan” ”will” or the negative of those variations or comparable expressions including references to assumptions. These forward-looking statements are not based on historical facts but rather on the Directors’ current expectations and assumptions regarding the Company’s future growth results of operations performance future capital and other expenditures (including the amount. nature and sources of funding thereof) competitive advantages business prospects and opportunities. Such forward-looking statements reflect the Directors’ current beliefs and assumptions and are based on information currently available to the Directors.  Many factors could cause actual results to differ materially from the results discussed in the forward-looking statements including risks associated with vulnerability to general economic and business conditions competition environmental and other regulatory changes actions by governmental authorities the availability of capital markets reliance on key personnel uninsured and underinsured losses and other factors many of which are beyond the control of the Company. Although any forward-looking statements contained in this announcement are based upon what the Directors believe to be reasonable assumptions. The Company cannot assure investors that actual results will be consistent with such forward-looking statements.

Prairie Mining Ltd (PDZ) September 2018 Quarterly Report

Highlights from and subsequent to the quarter end:

Possible Prairie and JSW Co-Operation

  • During the quarter, Prairie and JSW continued to exchange technical and commercial information in order to facilitate substantial and more advanced discussions regarding any potential co-operation or transaction(s) options in respect of Prairie’s Polish coking coal projects.
  • Further discussions were held between Prairie and JSW while Prairie has made available information to JSW in relation to both the Debiensko and Jan Karski projects to allow JSW to conduct assessments of their feasibility and economics.
  • Subsequent to the quarter, Prairie and JSW jointly reported that JSW’s due diligence had confirmed semi-soft coking coal quality at Jan Karski which JSW could potentially utilise, and had also indicated the technical feasibility and potential synergies in accessing Debiensko via JSW’s existing infrastructure. JSW estimates such synergies could potentially enable production within 18 months from all relevant permits and concession amendments being granted.
  • There can be no certainty as to whether any transaction(s) will be agreed, or the potential form of such transaction(s). The Company will continue to comply with its continuous disclosure obligations and will make announcements to the market as required.

Debiensko Mine

  • Prairie continued to analyse drill hole data which will be used for engineering design of foundations of structures associated with the shafts, coal handling and preparation plant and other surface facilities.
  • Mine site redevelopment planning continued including ongoing demolition works at Debiensko and the preparation of an infill drill program to increase JORC Measured and Indicated Resources.

Corporate

  • Prairie remains in a financially strong position with cash reserves of A$9.7 million on hand.

For further information, please contact:

Prairie Mining Limited

+44 20 7478 3900

Ben Stoikovich, Chief Executive Officer

info@pdz.com.au

Sapan Ghai, Head of Corporate Development

 

DEBIENSKO MINE

The Debiensko Mine (“Debiensko”) is a permitted, hard coking coal project located in the Upper Silesian Coal Basin in the south west of the Republic of Poland. It is approximately 40 km from the city of Katowice and 40 km from the Czech Republic.

Debiensko is bordered by the Knurow-Szczyglowice Mine in the north west and the Budryk Mine in the north east, both owned and operated by Jastrzębska Spółka Węglowa SA (“JSW”), Europe’s leading producer of hard coking coal.

The Debiensko mine was originally opened in 1898 and was operated by various Polish mining companies until 2000 when mining operations were terminated due to a major government led restructuring of the coal sector caused by a downturn in global coal prices. In early 2006 New World Resources Plc (“NWR”) acquired Debiensko and commenced planning for Debiensko to comply with Polish mining standards, with the aim of accessing and mining hard coking coal seams. In 2008, the MoE granted a 50-year mine license for Debiensko.

In October 2016, Prairie Mining Limited (“Prairie” or “Company”) acquired Debiensko with a view that a revised development approach would potentially allow for the early mining of profitable premium hard coking coal seams, whilst minimising upfront capital costs. Prairie has proven expertise in defining commercially robust projects and applying international standards in Poland. The fact that Debiensko is a former operating mine and its proximity to two neighbouring coking coal producers in the same geological setting, reaffirms the significant potential to successfully bring Debiensko back into operation.

Preparation for the Next Phase of Project Studies

Prairie continues to analyse the drill hole data which will be used for engineering design of foundations of structures associated with the shafts, coal handling and preparation plant and other surface facilities. These holes are essential in order to assess the soil conditions, properly design structural foundations and thus provide more accurate pricing in the tenders as required for a feasibility study.

Prairie’s team have also designed an infill drilling program that when undertaken will upgrade more of the resource base at Debiensko to the Measured and Indicated resource categories and support JORC compliant reserve estimation.

JAN KARSKI MINE

The Jan Karski Mine (“Jan Karski”) is a large scale semi-soft coking coal project located in the Lublin Coal Basin in south east Poland. The Lublin Coal Basin is an established coal producing province which is well serviced by modern and highly efficient infrastructure, offering the potential for low capital intensity mine development. Jan Karski is situated adjacent to the Lubelski Wegiel Bogdanka (“Bogdanka”) coal mine which has been in commercial production since 1982 and is the lowest cost hard coal producer in Europe.

Prairie’s use of modern exploration techniques continues to transform Jan Karski with latest drill results re-affriming the capability of the the project to produce high value ultra-low ash semi-soft coking coal (“SSCC”), known as Type 34 coal in Poland whilst confirming Jan Karski as a globally significant SSCC / Type 34 coking coal deposit with the potential to produce a high value ultra-low ash SSCC with a coking coal product split of up to 75%.

Key benefits for the local community and the Lublin and Chelm regions associated with the development, construction and operation of Jan Karski have been recognised as the following:

  • creation of 2,000 direct employment positions and 10,000 indirect jobs for the region once operational;
  • increasing skills of the workforce and through the implementation of International Standard training programmes;
  • stimulating the development of education, health services and communications within the region; and
  • building a mine that creates new employment for generations to come and career paths for families to remain in the region.

 Polish Civil Court Grants Injunction in Prairie’s Favour against Poland’s Ministry of Environment

In April 2018, Prairie commenced legal proceedings against Poland’s Ministry of Environment (“MoE”) due to its failure to grant Prairie a Mining Usufruct Agreement over the concessions which form the Jan Karski Mine and in order to protect the Company’s security of tenure over the project.

Pursuant to the initiated legal proceedings:

  • the Polish Civil Court ruled in Prairie’s favour by granting an injunction preventing the MoE from granting prospecting, exploration or mining concessions and concluding usufruct agreements with any other party until full court proceedings are concluded;
  • the decision provides security of tenure over the Jan Karski concessions and effectively safeguards Prairie’s rights at the project until full court proceedings have concluded.

The Regional Civil Court in Warsaw has issued a verdict that forms an injunction preventing the MoE from concluding exploration or mining usufruct agreement(s) regarding the Jan Karski Mine area (including the “Lublin” deposit, as well as the former K-4-5, K-6-7, K-8 and K-9 concession areas) with any party, other than PD Co Sp. z. o.o. (Prairie Mining’s wholly owned Polish subsidiary). The Court has also ordered that the MoE does not grant any concessions (for prospecting, exploration and/or mining) to any party other than PD Co Sp. z. o.o. This highly favourable court ruling was issued in response to Prairie’s application submitted as part of the legal proceedings commenced by Prairie to protect its tenure at Jan Karski.

As a result of the ruling by the Regional Civil Court in Warsaw, security of tenure over the Jan Karski concessions will be safeguarded until full court proceedings have concluded. It is anticipated that full court proceedings could take 12 months or more to complete.

In the justification to the Court’s ruling, the judge stated that: “Based on the evidence one may at this point state that the plaintiff [Prairie] enjoys the right to request conclusion of the requested mining usufruct agreement for the “Lublin” hard coal area (otherwise known as Jan Karski) resulting from Article 15 of the Geological and Mining Law.”

Prairie has provided the MoE with all documents required by Polish Law to conclude a Mining Usufruct Agreement, including the Geological Documentation approval and an official application for a Mining Usufruct Agreement.

To date the MoE has still not provided Prairie with a Mining Usufruct Agreement for Jan Karski.

Based on professional advice, Prairie considers that the MoE breached the GML and Polish law and is defending its position having commenced legal proceedings against the MoE through the Polish courts to protect its tenure at Jan Karski.

The Company will also consider any other actions necessary to ensure its concession rights are reserved which may result in the Company taking further action against the MoE including invoking the protection afforded to the Company under any relevant bi-lateral or multi-lateral investment treaties or such other actions as the Company may consider appropriate at the relevant time.

Regional Director for the Environment extends timing for Environmental Proceedings

Prairie completed an Environmental and Social Impact Assessment and made submissions to the Lublin Regional Director for the Environment (“RDOS”) for an Environmental Consent decision for Jan Karski in October 2017. In the previous quarter, the RDOS issued a notice indicating that the Environmental Proceedings would be delayed further, subject to the receipt of additional information requested by the RDOS which the Company, together with its appointed environmental consultants, are working to provide. During the previous quarter, there was a change of personnel fulfilling the functions of the Chairman and Deputy Chairman of the Lublin RDOS.

CORPORATE

Possible Co-Operation between Prairie and JSW

Discussions continued throughout the quarter and remain ongoing between Prairie and JSW. JSW’s due diligence process at Jan Karski has confirmed that part of the “Lublin” deposit contains semi-soft coking coal (Type 34), which can be potentially utilised by JSW.

Due diligence at Debiensko has also indicated the technical feasibility and potential synergies of accessing initial seams at the Debiensko deposit utilising the existing infrastructure at JSW’s adjacent Knurow-Szczyglowice mine. Exploiting those synergies would require modifications to project configuration and obtaining relevant approvals, including concession modifications. JSW estimates that access via the Szczyglowice mine potentially enables the production of hard coking coal (Type 35) from Debiensko in up to 18 months from the time that relevant administrative permits and concession amendments are granted.

There can be no certainty as to whether any transaction(s) or co-operation will be agreed, or the potential form of such transaction(s) or co-operation. It is emphasised that any potential transaction(s), should they occur, may be subject to a number of conditions including, but not limited to, obtaining necessary corporate approvals, consents and approvals related to funding, consents from Poland’s Office of Competition and Consumer Protection (UOKiK) if required, and any other requirements that may relate to the strategy, objectives and regulatory regimes applicable to the respective issuers.

Financial Position and Balance Sheet

Prairie has cash reserves of A$9.7 million. With CD Capital’s right to invest a further A$68 million as a cornerstone investor, Prairie is in a strong financial position to progress with its planned activities at Debiensko and Jan Karski.

Forward Looking Statements

This release may include forward-looking statements. These forward-looking statements are based on Prairie’s expectations and beliefs concerning future events. Forward looking statements are necessarily subject to risks, uncertainties and other factors, many of which are outside the control of Prairie, which could cause actual results to differ materially from such statements. Prairie makes no undertaking to subsequently update or revise the forward-looking statements made in this release, to reflect the circumstances or events after the date of that release.

Competent Person Statements

The information in this announcement that relates to Exploration Results was extracted from Prairie’s announcement dated 21 February 2018 entitled “Drill Results Affirm Jan Karski’s Status as a Globally Significant Semi-Soft (Type 34) Coking Coal Project”. The information in the original announcement is based on, and fairly represents information compiled or reviewed by Mr Jonathan O’Dell, a Competent Person who is a Member of The Australasian Institute of Mining and Metallurgy. Mr O’Dell is a part time consultant of the Company. Mr O’Dell has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Prairie confirms that: a) it is not aware of any new information or data that materially affects the information included in the original announcements; b) all material assumptions and technical parameters included in the original announcements continue to apply and have not materially changed; and c) the form and context in which the relevant Competent Persons’ findings are presented in this presentation have not been materially modified from the original announcements.

 APPENDIX 1 – EXPLORATION TENEMENT INFORMATION

As at 30 September 2018, the Company has an interest in the following tenements:

Location

Tenement

Percentage Interest

Status

Tenement Type

Jan Karski, Poland

Jan Karski Mine Plan Area (K-4-5, K-6-7, K-8 and K-9)*

100

Granted

Exclusive Right to apply for a mining concession

Jan Karski, Poland

Kulik (K-4-5)

100

Granted

Exploration

Jan Karski, Poland

Syczyn (K-8)

100

Granted

Exploration

Jan Karski, Poland

Kopina (K-9)

100

Granted

Exploration

Debiensko, Poland

Debiensko 1**

100

Granted

Mining

Debiensko, Poland

Kaczyce 1

100

Granted

 

*  In July 2015, Prairie announced that it had secured the Exclusive Right to apply for a Mining Concession for Jan Karski as a result of its Geological Documentation for the Jan Karski deposit being approved by Poland’s MoE. The approved Geological Documentation covers areas of all four original Exploration Concessions granted to Prairie (K-4-5, K-6-7, K-8 and K-9) and includes the full extent of the targeted resources within the mine plan for Jan Karski. As a result of the Exclusive Right, Prairie was the only entity with a legal right to lodge a Mining Concession application over Jan Karski for the period up and until 2 April 2018. Under the Polish GML, a Mining Concession application comprises the submission of a Deposit Development Plan (“DDP”), approval of a spatial development plan (rezoning of land for mining use) and an Environmental Consent decision. Prairie has previously announced that the DDP and spatial development plans for Jan Karski have already been approved. 

However, as of the date of this report, Prairie has not yet received the required Environmental Consent decision, which remains pending. Prairie completed an Environmental and Social Impact Assessment and made submissions to RDOS for an Environmental Consent decision in October 2017. Prairie has not been able to apply for a Mining Concession for Jan Karski due to the delay in the issuance of an Environmental Consent decision. However, the Environmental Consent proceedings continue to progress and the Company has received notice from the RDOS to provide supplementary information to the originally submitted Environmental & Social Impact Assessment.

 

The approval of Prairie’s Geological Documentation in 2015 also conferred upon Prairie the legal right to apply for a Mining Usufruct Agreement over Jan Karski for an additional 12-month period beyond April 2018, which precludes any other parties being granted any licence over all or part of the Jan Karski concessions. Under Polish law, the MoE is strictly obligated, within three months of Prairie making an application for a Mining Usufruct Agreement, to grant the agreement. It should be noted that the MoE confirmed Prairie’s priority right in two written statements (i.e. in a final administrative decision dated 11 February 2016 and in a formal letter dated 13 April 2016). Prairie applied to the MoE for a Mining Usufruct Agreement over Jan Karski in late December 2017. As of the date of this report the MoE has not made available to Prairie a Mining Usufruct Agreement for Jan Karski, therefore breaching the three-month obligatory period for the agreement to be concluded. Legal advice provided to Prairie concludes that failure of the MoE to grant Prairie the Mining Usufruct Agreement is a breach of Polish law. Accordingly, the Company commenced legal proceedings against the MoE through the Polish courts in order to protect the Company’s security of tenure over the Jan Karski concessions. Since the MoE has not provided a decision within three months regarding Prairie’s Mining Usufruct application, the Polish civil court has the power to enforce conclusion of a Usufruct Agreement in place of the MoE. In the event that a Mining Usufruct Agreement is not made available to the Company on acceptable terms or the Company does not enter into a Mining Usufruct Agreement for any other reason, other parties may be able to apply for exploration or mining rights for all or part of the Jan Karski concession area. However, given that the Civil Court has approved Prairie’s motion for an injunction against the MoE, as described above, the MoE is now prevented from entering into a Usufruct agreement or concession with any other party besides Prairie until the full court proceeding has concluded.

 

As previously disclosed by the Company, since April 2015, Bogdanka has made a number of applications and appeals to the Polish authorities seeking a Mining Concession application over the Company’s K-6-7 Exploration Concession and priority right (only one Exploration Concession which comprises of the Jan Karski Mine). All applications and appeals previously made by Bogdanka have been outright rejected. However, Bogdanka has made a further appeal to the Supreme Administrative Court.  A court hearing for this appeal has now been scheduled for mid-November. The Supreme Administrative Court has no authority to grant Bogdanka a Mining Concession but it may however cancel the MoE’s previous rejection decision.

 

If the Supreme Administrative Court does cancel the MoE’s decision, the MoE will be required to re-assess Bogdanka’s Mining Concession application. As discussed above Bogdanka has in the past raised several appeals challenging the Company’s title to the Exploration Concessions and Geological Documentation comprising the Jan Karski Mine. There is therefore no guarantee that Bogdanka will not seek to file further appeals to future decisions taken by government departments in the course of the Jan Karski Mine development timeline. Furthermore, Bogdanka has filed a another Mining Concession application for the K-6-7 area subsequent to the MoE not providing Prairie with a Mining Usufruct Agreement as discussed above. However, given that the Civil Court has approved Prairie’s motion for an injunction against the MoE, the MoE is unable to grant a Mining Concession for K-6-7 to Bogdanka (or any other party other than Prairie) until full court proceedings are concluded.

 

**             Under the terms of the Debiensko Mining Concession issued in 2008 by the MoE (which is valid for 50 years from grant date), commencement of production was to occur by 1 January 2018. In December 2016, following the acquisition of Debiensko, Prairie applied to the MoE to amend the 50 year Debiensko Mining Concession. The purpose of the concession amendment was to extend the time stipulated in the Mining Concession for first production of coal from 2018 to 2025. Prairie has now received an initial and appealable, first instance decision from the MoE that has denied the Company’s amendment application. However, Prairie continues to have valid tenure and ownership of land at Debiensko. Not meeting the production timeframe stipulated in the concession does not immediately infringe on the validity and expiry date of the Debiensko Mining Concession, which is June 2058. Prairie also holds a valid environmental consent decision enabling mine construction. Prairie will appeal the MoE’s decision on the basis that its justification for denial is fundamentally flawed for a number of reasons including failure to take into account the requirements of the law and public interest in Poland, and the relevant facts of the Company and its amendment application. Prairie will strongly defend its position and continue to take relevant actions to pursue its legal rights regarding the Debiensko concession. Prairie’s legal team is in the process of preparing this appeal, which will point out the deficiencies of the MoE’s first instance decision. However, if Prairie’s appeal is unsuccessful, then this may lead to the commencement of proceedings by the MoE to limit or withdraw the Debiensko concession. Prairie also has the right of further appeal to Poland’s administrative courts. The Company will consider any other actions necessary to ensure its concession rights are preserved, which may result in the Company taking further action against the MoE including invoking the protection afforded to the Company under any relevant bi-lateral or multi-lateral investment treaties or such other actions as the Company may consider appropriate at the relevant time.

+Rule 5.5

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Introduced 01/07/96  Origin Appendix 8  Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10, 01/05/13, 01/09/16

Name of entity

PRAIRIE MINING LIMITED

ABN

Quarter ended (“current quarter”)

23 008 677 852

30 September 2018

Consolidated statement of cash flows

Current quarter $A’000

Year to date             (3 months)
$A’000

1.

Cash flows from operating activities

1.1

Receipts from customers

1.2

Payments for

(780)

(780)

(a)   exploration & evaluation

(b)   development

(c)   production

(d)   staff costs

(336)

(336)

(e)   administration and corporate costs

(292)

(292)

1.3

Dividends received (see note 3)

1.4

Interest received

61

61

1.5

Interest and other costs of finance paid

1.6

Income taxes paid

1.7

Research and development refunds

1.8

Other (provide details if material)

(a)  Business development costs

(b)  Property rental and gas sales

(57)

94

(57)

94

1.9

Net cash from / (used in) operating activities

(1,310)

(1,310)

2.

Cash flows from investing activities

2.1

Payments to acquire:

(a)   property, plant and equipment

(b)   tenements (see item 10)

(c)   investments

(d)   other non-current assets

2.2

Proceeds from the disposal of:

(a)   property, plant and equipment

(b)   tenements (see item 10)

(c)   investments

(d)   other non-current assets

2.3

Cash flows from loans to other entities

2.4

Dividends received (see note 3)

2.5

Other (provide details if material)

2.6

Net cash from / (used in) investing activities

3.

Cash flows from financing activities

3.1

Proceeds from issues of shares

3.2

Proceeds from issue of convertible notes

3.3

Proceeds from exercise of share options

3.4

Transaction costs related to issues of shares, convertible notes or options

(37)

(37)

3.5

Proceeds from borrowings

3.6

Repayment of borrowings

3.7

Transaction costs related to loans and borrowings

3.8

Dividends paid

3.9

Other (provide details if material)

3.10

Net cash from / (used in) financing activities

(37)

(37)

4.

Net increase / (decrease) in cash and cash equivalents for the period

11,016

11,016

4.1

Cash and cash equivalents at beginning of period

4.2

Net cash from / (used in) operating activities (item 1.9 above)

(1,310)

(1,310)

4.3

Net cash from / (used in) investing activities (item 2.6 above)

4.4

Net cash from / (used in) financing activities (item 3.10 above)

(37)

(37)

4.5

Effect of movement in exchange rates on cash held

1

1

4.6

Cash and cash equivalents at end of period

9,670

9,670

5.

Reconciliation of cash and cash equivalents
at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts

Current quarter
$A’000

Previous quarter
$A’000

5.1

Bank balances

2,170

3,016

5.2

Call deposits

                       7,500

8,000

5.3

Bank overdrafts

5.4

Other (provide details)

5.5

Cash and cash equivalents at end of quarter (should equal item 4.6 above)

9,670

11,016

6.

Payments to directors of the entity and their associates

Current quarter
$A’000

6.1

Aggregate amount of payments to these parties included in item 1.2

(175)

6.2

Aggregate amount of cash flow from loans to these parties included in item 2.3

Nil

6.3

Include below any explanation necessary to understand the transactions included in items 6.1 and 6.2

Payments include executive remuneration (including bonuses), director fees, superannuation and provision of a fully serviced office.

7.

Payments to related entities of the entity and their associates

Current quarter
$A’000

7.1

Aggregate amount of payments to these parties included in item 1.2

7.2

Aggregate amount of cash flow from loans to these parties included in item 2.3

7.3

Include below any explanation necessary to understand the transactions included in items 7.1 and 7.2

Not applicable

8.

Financing facilities available
Add notes as necessary for an understanding of the position

Total facility amount at quarter end
$A’000

Amount drawn at quarter end
$A’000

8.1

Loan facilities

8.2

Credit standby arrangements

8.3

Other (please specify)

8.4

Include below a description of each facility above, including the lender, interest rate and whether it is secured or unsecured. If any additional facilities have been entered into or are proposed to be entered into after quarter end, include details of those facilities as well.

9.

Estimated cash outflows for next quarter

$A’000

9.1

Exploration and evaluation

(500)

9.2

Development

9.3

Production

9.4

Staff costs

(300)

9.5

Administration and corporate costs

(200)

9.6

Other (provide details if material)
(a)        Business development costs

(50)

9.7

Total estimated cash outflows

(1,050)

10.

Changes in tenements
(items 2.1(b) and 2.2(b) above)

Tenement reference and location

Nature of interest

Interest at beginning of quarter

Interest at end of quarter

10.1

Interests in mining tenements and petroleum tenements lapsed, relinquished or reduced

10.2

Interests in mining tenements and petroleum tenements acquired or increased

Compliance statement

1        This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

2        This statement gives a true and fair view of the matters disclosed.

                        [lodged electronically without signature]

Sign here:         ……………………………………………………                        Date: 31 October 2018

(Director/Company secretary)

Print name:       Dylan Browne

Notes

  1. The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity that wishes to disclose additional information is encouraged to do so, in a note or notes included in or attached to this report.
  2. If this quarterly report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.
  3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

Salt Lake Potash #SO4 – Appointment of Tony Swiericzuk as Managing Director & CEO

  • Highly regarded mining executive Tony Swiericzuk appointed as Managing Director and Chief Executive Officer of Salt Lake Potash.
  • Mr Swiericzuk recently spent 9 years with Fortescue Metals Group (FMG), including as Director Business Development and Exploration, General Manager Christmas Creek Mine and General Manager Port.
  • Has a diversified construction, operations and logistics background in the mining, steelworks and ports industries spanning a 25 year career.
  • Mr Swiericzuk’s initial focus will be the rapid development of Australia’s first SOP operation.

Salt Lake Potash Limited (SLP or Company) is pleased to announce that the Company has appointed Tony Swiericzuk as Managing Director and Chief Executive Officer (CEO) effective 5th November 2018 and subject to completion of regulatory due diligence.

Mr Swiericzuk is a Mining Engineer with outstanding credentials as a builder and operator of mining projects, having recently been General Manager of the Christmas Creek Mine from 2012 to 2017. He oversaw the construction, commissioning and ramp-up of this project from 15Mtpa to 60Mtpa in his initial 2 year period then proceeded to optimise the operation and help drive FMG to become the world’s lowest cost iron ore producer.

In his initial years at FMG Mr Swiericzuk was General Manager Port Operations in Port Hedland and managed the ramp up from 20Mtpa to 60Mtpa from 2009 to 2011.

He holds an Honours Degree in Mining Engineering from The University of Queensland, a Master of Business Administration from Deakin University, and is a Graduate of the Australian Institute of Company Directors.

Mr Swiericzuk has the ideal operating and commercial experience to rapidly deliver on the exceptional potential of the Goldfields Salt Lakes Project (GSLP). The GSLP is a technically advanced, sustainable and highly scalable project to produce sought-after chlorine free fertilisers for the export and domestic markets.

The size and geographic locations of the nine lakes comprising the GSLP support a low risk, high margin business model that can be further enhanced by optimising the transport and logistics, and also by making use of existing infrastructure already available in the Northern Goldfields of Western Australia.

Mr Swiericzuk’s diverse background in large scale logistics operations will be a substantial benefit to the development of the GSLP and he also intends to utilise the tried and proven methods which were essential in making FMG the lowest cost iron ore producer in the world.

Current CEO of the Company, Mr Matthew Syme, has been integral to Mr Swiericzuk’s appointment and will remain a director and consultant to the Company ensuring a seamless handover.

Mr Swiericzuk said:  “I am thrilled to be accepting this role as CEO with Salt Lake Potash, and will lead the Company in building the first project in this exciting new industry for Western Australia. Since leaving FMG, I have been looking for a challenge where I can bring my construction, operational and logistical expertise to bear. I have been studying the emerging salt lake SOP sector for some time and the potential for a new large scale, environmentally friendly, primary resource industry is outstanding. A deep dive into Salt Lake Potash’s high quality technical work, business model and relationships has convinced me that it is easily the best company to lead the development of the sector in Australia. Its multi-lake holdings in proximity to the Goldfields infrastructure is paramount and offers great potential to achieve cost savings and economies of scale, as we did in the iron ore sector.”

 Salt Lake Potash Chairman, Ian Middlemas, said: “We are delighted to have secured the services of an outstanding mining executive to lead the Company into development and production at the GSLP.  Tony’s skills base is ideal for us and not easy to find, so we are particularly pleased that he has accepted the role based on his enthusiasm for the sector, absolute belief in the quality of the GSLP assets and strong determination to develop the first salt lake SOP operation in Australia.

I would also like to pay tribute to outgoing CEO, Matt Syme, who has done a superb job to get the Company to this stage, accumulating a formidable portfolio of salt lake properties and managing the critical early days of technical achievement and team and relationship building to get us to where we are today.

An exciting new chapter is commencing for the Company. With a new CEO committed to deliver the GSLP fast and at low cost, and our offtake relationships with Mitsubishi and Sinofert in place, we are now poised to deliver on the significant potential of this Project for our shareholders and stakeholders.”

For further information please visit www.saltlakepotash.com.au or contact:

Matt Syme/Clint McGhie

Salt Lake Potash Limited

Tel: +61 8 9322 6322

Jo Battershill

Salt Lake Potash Limited

Tel: +44 (0) 754 036 6000

Colin Aaronson/Richard Tonthat/Ben Roberts

Grant Thornton UK LLP (Nominated Adviser)

Tel: +44 (0) 20 7383 5100

Derrick Lee/Beth McKiernan

Cenkos Securities plc (Joint Broker)

Tel: +44 (0) 131 220 6939

Jerry Keen/Toby Gibbs

 

Shore Capital (Joint broker)

Tel: +44 (0) 20 7468 7967

 

 

Terms of Appointment

 Subject to regulatory due diligence, Mr Swiericzuk will be engaged as Managing Director and Chief Executive Officer under an executive service agreement, on a rolling 12 month term that either party may terminate with three months written notice.

 Mr Swiericzuk will receive an annual salary of A$350,000 plus compulsory superannuation.

 A short term incentive comprised of performance rights to the value of $200,000 per annum (pro-rated for part years) based on the 30-day VWAP on 30 June of the preceding year will be granted subject to necessary approvals, vesting in July the following year. Mr Swiericzuk will receive 266,258 performance rights in respect of the part year ended 30 June 2019 and vesting 30 June 2019.

Mr Swiericzuk (or his nominee) will also be granted the following long term incentives subject to the necessary approvals:

Incentive Options

  • 1,000,000 incentive options exercisable at $0.60 each, expiring 5 years from the date of issue and vesting 12 months from the commencement date;
  • 2,000,000 incentive options exercisable at $1.00 each, expiring 5 years from the date of issue and vesting 24 months from the commencement date; and
  • 2,000,000 incentive options exercisable at $1.20 each, expiring 5 years from the date of issue and vesting 24 months from the commencement date.

Performance Rights pursuant to the Salt Lake Potash Limited Performance Rights Plan

  • 1,500,000 performance rights vesting upon satisfaction of the Trench / Pond Construction Milestone: which means commencement of construction of trenches and ponds required for a minimum 200,000 tpa process plant for the Goldfields Salt Lakes Project as determined by the Board, and expiring 2 years from the date of issue;
  • 1,500,000 performance rights vesting upon satisfaction of the Plant Construction Milestone: which means commencement of construction of a minimum 200,000 tpa process plant for the Goldfields Salt Lakes Project as determined by the Board, and expiring 3 years from the date of issue;
  • 2,000,000 performance rights vesting upon satisfaction of the Plant Commissioning Milestone: which means commissioning of a minimum 200,000 tpa process plant for the Goldfields Salt Lakes Project and production of first commercial quality Sulphate of Potash as determined by the Board, and expiring 4 years from the date of issue; and
  • 2,000,000 performance rights vesting upon satisfaction of the Nameplate Capacity Milestone: which means achievement of nameplate capacity for a minimum 200,000 tpa process plant for the Goldfields Salt Lakes Project as determined by the Board, and expiring 5 years from the date of issue. 

 

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

Cadence Minerals (KDNC) – Macarthur Minerals (TSX-V: MMS) Identifies Multiple Priority Metal Sulphide Targets at Lake Giles.

Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to note that Macarthur Minerals (“Macarthur”, TSX-V: MMS) has identified three high priority nickel sulphide targets at Macarthur’s Lake Giles project in Western Australia. The targets were derived from a recent geophysical survey using Moving Loop Electromagnetics (“MLEM”). Surveying at Moonshine successfully delineated two bedrock conductors, MC01 and MC02, with a further bedrock conductor identified at the Snark prospect.

Highlights:

  • A Moving Loop Electromagnetic (“MLEM”) survey was conducted across three prospects at the Lake Giles project. The survey targets were derived from previous drilling and soil geochemistry data that indicated potential for nickel sulphide. A follow-up Fixed Loop Electromagnetic (“FLEM”) survey was conducted at the southern extent of the Snark MLEM survey.
  • Interpretation of data was undertaken by geophysicists from Newexco who are experts in the application of geophysical surveys for the discovery of nickel sulphide deposits.
  • The survey at Moonshine was conducted over an area of 60 ha. Strong conductance was recorded across all five lines with modelling delineating two bedrock conductors, MC01 and MC02.
  • The MLEM survey at Snark covered an area of 310 ha. The survey identified two bedrock conductors at Snark, SC01 and SC02.
  • Conductors MC01 at Moonshine and SC01 at Snark are considered high priority targets and will be tested by drilling. Newexco has planned two drill holes to intersect the conductors at the point where they display a high EM response.
  • An initial program of two holes drilled to a depth of 200m will be commenced upon receipt of drilling permits.

Cadence holds approximately 12% of the issued equity interest in Macarthur, which is an Australian mining exploration company focused primarily on lithium, iron ore and gold in the Pilbara region of Western Australia. It also has the lithium project in Nevada, USA.

The full release can be found at:

https://web.tmxmoney.com/article.php?newsid=7121766067912823&qm_symbol=MM

Cadence Minerals CEO Kiran Morzaria commented: “We are greatly encouraged by the progress and recent developments reported by Cameron McCall and the Macarthur Minerals team. Having already amassed a considerable historical dataset for Lake Giles, the new nickel sulphide targets announced today add further credence to the Macarthur Minerals investment case. We look forward to further updates once drilling commences.”

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

– Ends –

For further information:

Cadence Minerals plc +44 (0) 207 440 0647
Andrew Suckling
Kiran Morzaria
WH Ireland Limited (NOMAD & Broker) +44 (0) 207 220 1666
James Joyce
James Sinclair-Ford
Hannam & Partners LLP (Joint Broker) +44 (0) 207 907 8500
Neil Passmore
Ingo Hofmaier

 

Qualified Person

Kiran Morzaria B.Eng. (ACSM), MBA, has reviewed and approved the information contained in this announcement. Kiran holds a Bachelor of Engineering (Industrial Geology) from the Camborne School of Mines and an MBA (Finance) from CASS Business School.

Cadence is dedicated to smart investments for a greener world. The planet needs rechargeable batteries on a global scale – upcoming supersized passenger vehicles, lorries and buses – require lithium and other technology minerals to power their cells. Cadence is helping find these minerals in new places and extracting them in new ways, which will meet the demand of this burgeoning market.

Cadence invests across the globe, principally in lithium mining projects. Its primary strategy is taking significant economic stakes in upstream exploration and development assets within strategic metals. We identify assets that have strategic cost advantages that are not replicable, with the aim of achieving lower quartile production costs. The combination of this approach and seeking value opportunities allows us to identify projects capable of achieving high rates of return.

The Cadence board has a blend of mining, commodity investing, fund management and deal structuring knowledge and experience, that is supported by access to key marketing, political and industry contacts. These resources are leveraged not only in our investment decisions but also in continuing support of our investments, whether it be increasing market awareness of an asset, or advising on product mix or path to production. Cadence Mineral’s goal is to assist management to rapidly develop the project up the value curve and deliver excellent returns on its investments.

Forward-Looking Statements:

Certain statements in this announcement are or may be deemed to be forward-looking statements. Forward-looking statements are identified by their use of terms and phrases such as ‘‘believe’’ ‘‘could’’ “should” ‘‘envisage’’ ‘‘estimate’’ ‘‘intend’’ ‘‘may’’ ‘‘plan’’ ‘‘will’’ or the negative of those variations or comparable expressions including references to assumptions. These forward-looking statements are not based on historical facts but rather on the Directors’ current expectations and assumptions regarding the Company’s future growth results of operations performance future capital and other expenditures (including the amount. nature and sources of funding thereof) competitive advantages business prospects and opportunities. Such forward-looking statements reflect the Directors’ current beliefs and assumptions and are based on information currently available to the Directors.  Many factors could cause actual results to differ materially from the results discussed in the forward-looking statements including risks associated with vulnerability to general economic and business conditions competition environmental and other regulatory changes actions by governmental authorities the availability of capital markets reliance on key personnel uninsured and underinsured losses and other factors many of which are beyond the control of the Company. Although any forward-looking statements contained in this announcement are based upon what the Directors believe to be reasonable assumptions. The Company cannot assure investors that actual results will be consistent with such forward-looking statements.

 

Salt Lake Potash #SO4 Appendix 5B Quarterly Report

Mining exploration entity and oil and gas exploration entity quarterly report

Introduced 01/07/96  Origin Appendix 8  Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10, 01/05/13, 01/09/16

 

Name of entity

Salt Lake Potash Limited

ABN

Quarter ended (“current quarter”)

98 117 085 748

30 June 2018

Consolidated statement of cash flows

Current quarter $A’000

Year to date              (12 months)
$A’000

1.

Cash flows from operating activities

1.1

Receipts from customers

1.2

Payments for

(1,143)

(5,930)

(a)   exploration & evaluation

(b)   development

(c)   production

(d)   staff costs

(628)

(2,553)

(e)   administration and corporate costs

(264)

(790)

1.3

Dividends received (see note 3)

1.4

Interest received

48

242

1.5

Interest and other costs of finance paid

1.6

Income taxes paid

1.7

Research and development refunds

457

1.8

Other (provide details if material)
– Business Development

– GST refunds (paid)

– Exploration Incentive Scheme

(385)

(50)

(989)

11

30

1.9

Net cash from / (used in) operating activities

(2,422)

(9,522)

2.

Cash flows from investing activities

(168)

(290)

2.1

Payments to acquire:

(a)   property, plant and equipment

(b)   tenements (see item 10)

(c)   investments

(d)   other non-current assets

2.2

Proceeds from the disposal of:

(a)   property, plant and equipment

(b)   tenements (see item 10)

(c)   investments

(d)   other non-current assets

2.3

Cash flows from loans to other entities

2.4

Dividends received (see note 3)

2.5

Other (provide details if material)

2.6

Net cash from / (used in) investing activities

(168)

(290)

3.

Cash flows from financing activities

3.1

Proceeds from issues of shares

3.2

Proceeds from issue of convertible notes

3.3

Proceeds from exercise of share options

3.4

Transaction costs related to issues of shares, convertible notes or options

(75)

3.5

Proceeds from borrowings

3.6

Repayment of borrowings

3.7

Transaction costs related to loans and borrowings

3.8

Dividends paid

3.9

Other (provide details if material)

3.10

Net cash from / (used in) financing activities

(75)

4.

Net increase / (decrease) in cash and cash equivalents for the period

8,300

15,597

4.1

Cash and cash equivalents at beginning of period

4.2

Net cash from / (used in) operating activities (item 1.9 above)

(2,422)

(9,522)

4.3

Net cash from / (used in) investing activities (item 2.6 above)

(168)

(290)

4.4

Net cash from / (used in) financing activities (item 3.10 above)

(75)

4.5

Effect of movement in exchange rates on cash held

4.6

Cash and cash equivalents at end of period

5,711

5,711

5.

Reconciliation of cash and cash equivalents
at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts

Current quarter
$A’000

Previous quarter
$A’000

5.1

Bank balances

1,711

2,300

5.2

Call deposits

4,000

6,000

5.3

Bank overdrafts

5.4

Other (provide details)

5.5

Cash and cash equivalents at end of quarter (should equal item 4.6 above)

5,711

8,300

6.

Payments to directors of the entity and their associates

Current quarter
$A’000

6.1

Aggregate amount of payments to these parties included in item 1.2

(207)

6.2

Aggregate amount of cash flow from loans to these parties included in item 2.3

6.3

Include below any explanation necessary to understand the transactions included in items 6.1 and 6.2

Payments include director and consulting fees, superannuation and provision of corporate, administration services, and a fully serviced office.

7.

Payments to related entities of the entity and their associates

Current quarter
$A’000

7.1

Aggregate amount of payments to these parties included in item 1.2

7.2

Aggregate amount of cash flow from loans to these parties included in item 2.3

7.3

Include below any explanation necessary to understand the transactions included in items 7.1 and 7.2

Not applicable.

8.

Financing facilities available
Add notes as necessary for an understanding of the position

Total facility amount at quarter end
$A’000

Amount drawn at quarter end
$A’000

8.1

Loan facilities

8.2

Credit standby arrangements

8.3

Other (please specify)

8.4

Include below a description of each facility above, including the lender, interest rate and whether it is secured or unsecured. If any additional facilities have been entered into or are proposed to be entered into after quarter end, include details of those facilities as well.

Not applicable

9.

Estimated cash outflows for next quarter

$A’000

9.1

Exploration and evaluation

1,200

9.2

Development

9.3

Production

9.4

Staff costs

650

9.5

Administration and corporate costs

200

9.6

Other (provide details if material)
– Business Development


150

9.7

Total estimated cash outflows

2,200

10.

Changes in tenements
(items 2.1(b) and 2.2(b) above)

Tenement reference and location

Nature of interest

Interest at beginning of quarter

Interest at end of quarter

10.1

Interests in mining tenements and petroleum tenements lapsed, relinquished or reduced

Refer to Table 3

10.2

Interests in mining tenements and petroleum tenements acquired or increased

Compliance statement

1        This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

2        This statement gives a true and fair view of the matters disclosed.

Sign here:         ……………………………………………………                        Date: 30 July 2018

(Director/Company secretary)

Print name:       Sam Cordin

Notes

1.       The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity that wishes to disclose additional information is encouraged to do so, in a note or notes included in or attached to this report.

2.       If this quarterly report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.

3.       Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

Petropavlovsk (POG) – Turning The Corner ?

Petropavlovsk ( formerly Peter Hambro Mining ) is Russia’s second largest gold miner. Five year ago its shares were 1000p, 3 years ago they were 400p, a year ago 26p and today they stand at 6.12p which is well off the March low of 4.41p.

Last year there was grave uncertainty as to whether the company could continue after 31st December and the expected breach of its banking covenants. But survive it did and it has today promised shareholders that at the end of this year net debt will be down by over a third to $600m. compared to last Decembers crushing $932m. and that it expects to stay within its financial covenants. The targeted repayments schedule has been met

POG has survived by concentrating on mining and production of ounces with the highest profit margin, completely excluding those where were  only marginally profitable.  Capital expenditure and costs have been slashed.

Targets were set for survival and have been met. Third quarter gold production is on target,  albeit at 114,500 oz. it is down 24% on the third quarter of 2014.

For the first nine months of the current year, production is also on target at 354,500 oz compared to last years 460,900 oz. whilst the average realised price was $1180 per oz. In the first half of 2015 POG made a small operating profit despite those planned cuts in production and the fall in the price of gold.

A rise in the price of gold would transform the company’s future but even without that it is beginning to be talked of as a possible recovery stock, albeit at present, a highly speculative one.

 HiddenGreece –  villas and houses for sale in Greece – http://www.hiddengreece.net

 

AMUR MINERALS – SHARES SOAR ON GRANT OF PRODUCTION LICENCE

Amur1Amur Minerals AMC today announces that Dimitry Medvedev, the Russian Premier has signed the long awaited exploration and production licence for AMC’s huge Kun Mani project in Amur Province in far East Russia. The shares started rising early this morning before AMC issued its RNS, after news of the grant appeared in the Russian Media. So far today the shares have risen by 67% and now stand at 17p, having closed yesterday at just under 12p. The licence is for a period of 20 years.

The full text of the RNS is as follows;

Kun-Manie Production Licence Awarded

100% Production Rights

Amur Minerals Corporation (“Amur” or the “Company”), the exploration and development company focused on base metal projects located in the Far East of Russia, is delighted to report that the Government of Prime Minister Dmitry Medvedev has approved the Company’s “Detailed Exploration and Mine Production Licence” for its Kun-Manie nickel copper sulphide deposit. The new 36 square kilometre licence is valid until December 2034.

The decision by the Russian Government marks the successful completion of the production licence award process for a strategic deposit. Conclusion of the process enables the Ministry of Natural Resources (“MNR”) and Rosnedra to issue the “Detailed Exploration and Mine Production Licence” per the directive of the Russian Government. Upon registration of the final document, the Company has 30 days to submit its payment of 23.6 million Rubles (approximately $480,000) to officially complete the transaction. The licence grants our wholly owned subsidiary ZAO Kun-Manie the rights to recover all value from the mineral defined to be present at Kun-Manie.

Highlights:

· The Russian Government has approved the Company’s application for mining rights at Kun Manie and issued the directive granting the production rights to the Company until 2034,

· The Company holds 100% of the rights and is entitled to recover all economic value minerals including nickel, copper, cobalt, platinum, palladium, and other minor minerals,

All drilled mineralisation (841,000 nickel tonnes equivalent) lies within the limits of the production licence, and

· Upon receipt of the licence and as agreed in the Terms and Conditions, the Company will compensate the Government with a one-time payment of 23.6 million Roubles (approximately US$480,000).

The award of the “Detailed Exploration and Mine Production Licence” is a major milestone and initiates a new phase for the Company. The strategy of the Company can now shift from exploration to that of pre-production. Over the course of the licence award process, additional engineering work and planning has been implemented by our staff and independent consultants and will be useful in future assessment and design of the operation.

In anticipation of the award, our ZAO Kun-Manie team has already completed a “Project” (Proekt) document defining the plans and activities necessary to advance Kun-Manie to a producing operation. Submission of the programme sets out a work plan in accordance with the Terms and Conditions of the licence. Typically, companies await the final award of a production licence before completing such documentation, however by undertaking this effort in advance of the actual award, the Company will be able to register its detailed exploration plan, allowing it to take advantage of this upcoming field season and further advance the potential of Kun-Manie on a more accelerated basis. The exploration programme will define additional resources and reserves and in-fill drilling will be implemented to define the extent of the Proven and Probable reserves.

The Terms and Conditions of the licence, as negotiated with Rosnedra, set out the responsibilities of the Company to maintain the production rights in good standing. Broadly, the key points address the specifics of the following:

· The one-time payment to be made within 30 days of licence registration in the sum total of 23,610,272 Rubles (approximately $480,000).

· Annually reporting to mineral resource agencies by 15 January.

· Regular environmental monitoring requirements are included.

· Detailed exploration plans are to be provided to appropriate agencies

· Additional work related to metallurgy and engineering studies will be compiled in a final permanent TEO (Russian feasibility study) to be approved by the GKZ (State Reserves Committee), including additional results for detailed exploration.

· The detailed exploration “Project” has been drafted by the Company and will require approval by the regional authorities. It establishes the basic parameters and volumes of work for the next phase of development, in preparation for the start of production.

The newly defined boundaries of the approved 36 square kilometre “Detailed Exploration and Production Licence” are summarized below. An illustration of the production area and the former exploration licence can be viewed using the hyperlink:

Robin Young, CEO of Amur Minerals Corporation, commented:

“Today we have the distinct privilege of announcing to our shareholders that we are embarking on a new and exciting phase at the Kun-Manie nickel sulphide project with the granting of the 20 year “Detailed Exploration and Mine Production Licence”. As we prepare for the detailed exploration, engineering and subsequent production stages of the project, we express gratitude to our team in Russia and the UK, to the Russian Government for their support of the Company’s efforts, and to our shareholders, many of whom have been steadfast over the years in their belief that Kun-Manie is a highly substantial asset with a great future. We are pleased with the licence terms and conditions, which we agreed with the Government, and note that the authorities give considerable leeway to advance the project as quickly and efficiently as possible. On behalf of the Board of Amur, thank you for your unwavering support. We look forward to taking up the next phases of pre-production and development.”

HiddenGreece – villas and houses for sale in Greece – http://www.hiddengreece.net

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