DGAP-News: Astra Resources Plc: Astra acquires concentrated metal ore deposit in Norway
(firmenpresse) - DGAP-News: Astra Resources Plc / Key word(s): Strategic Company
Decision/Miscellaneous
Astra Resources Plc: Astra acquires concentrated metal ore deposit in
Norway
22.02.2012 / 18:00
---------------------------------------------------------------------
Astra acquires concentrated metal ore deposit in Norway
Adelaide, Australia - 22 February 2012: International diversified resources
company, Astra Resources Plc (FWB Code: 9AR), has acquired the Joma
Minerals Project, a concentrated metal ore mine in Lake Hudningsvatnet,
Norway.
The acquisition, signed through Astra's subsidiary MidAst Investment Group
LLC, is on a scrip basis, and gives Astra operational control and 90%
ownership of the operation (equivalent to Astra's 90% stake in MidAst)
which is situated in the county of Nord-Trondelag, near the Swedish border
of Norway. Astra will form a Norwegian subsidiary to manage, own, and
operate the asset and licenses.
The operation is subject to final due diligence, including the completion
of technical and scientific reports, testing of samples obtained by Astra ,
independent confirmation of the calculated output value and Astra Resources
board approval.
Deposit registrations made by the mine lab of the previous mining company
indicates iron ore, copper, zinc, gold and silver resources are all present
in the acquisition area, representing about 60% of the over 10.5 million
tonne plus deposit. The asset has been defined.
Astra CEO Dr Jaydeep Biswas says the most recent assay in October 2011
indicates a current net asset value of over US$600 million (after deducting
operating costs), excluding the value of gold. The gold value brings the
potential value closer to US$1 billion.
'The deposit was built up over 16 years by concentrated tailings from past
mining operations, with this type of storage previously being the norm,' Dr
Biswas says.
'Registered information indicates there is up to 12 million tonnes of
finely ground, concentrated ore currently situated at the bottom of Lake
Hudningsvatnet, which is 18 meters down at its deepest point.
'As the ore is already extracted and defined, there is no requirement to
drill and there will be no cost for mining, crushing and milling the ore,
removing the need for expensive equipment and high start-up costs.
'Instead, the ore will be pumped from the bottom of the lake and dried with
very standard low cost equipment, with estimated processing costs sitting
at less than $10 per tonne if we focus solely on the extraction of iron
ore.'
The enrichment process that is planned will result in 63% iron ore
Logistics to port and port facilities are in place to take these products
to local European and international markets.
Astra Managing Director Silvana De Cianni says while the extraction of iron
ore will prove highly cost-effective for Astra, other resources present in
Lake Hudningsvatnet add substantial value to the operation.
'The silver content alone has a gross value of $300 million, with the
previous manager of the mine confirming there are also substantial gold
resources present that are not included in the initial valuation,' Ms De
Cianni says.
'In addition, there are also indications that suggest there is a content of
rare soil minerals in the ore deposit, something that will be further
analysed during the production process.'
Astra plans to finish the exploitation of the current deposit during the
next 10-12 years, with production expected to include the uptake of the
resources from the lake, drying and separation of the waste rock.
The resources will then be transported to a harbour in the nearby town of
Namsos for export. Its harbour is ice-free all year round and was used by
the previous mine owners, with the main part of the infrastructure
remaining.
While the land surrounding Lake Hudningsvatnet is not included in the
acquisition, Astra has received the land owner's permission to lease the
necessary land for the development of the project and ore processing.
MidAst Investment Group's Managing Director Vincent Crandon will be
responsible for integrating the acquisition into the current Astra business
sector, and will then manage the corporate operation of the asset.
The total scrip offered in the acquisition is 50 million shares in Astra
Resources Plc which is included in the existing Astra capital structure.
The operation's present owners, CRD Holdings AB, have also been engaged for
two years on an exclusive basis as technical advisors to Astra, or any
special purpose vehicle established by Astra, for the purpose of the
acquisition and operation of the ore asset.
Bo Sandström, representative for CRD Holding AB, says the company is very
much looking forward to working with Astra Resources as well as Vincent
Crandon of MidAst Investment Group on the development of the Joma Minerals
project.
'We are very pleased with the result of our efforts to find a solution on
the financing of this Ore development and we rest assured that this will
be a very fruitful collaboration,' Mr Sandström says.
It is expected the production process will begin during 2013, once all the
operations permits are in place. Hedge funds in Europe are in discussion
with MidAst to fund the operations of this project or alternatively it will
be funded through Astra's IPO prospectus to be launched later this year.
This project will be a launch-pad for future projects in Scandinavia which
has a history of mining and prospective geological structures and is close
to industrialised consumer markets in Europe where Astra is also building
its T-Steel business.
Astra Resources' global portfolio includes gold interests in Southeast
Asia, coal mine in Africa, iron ore in India and the Philippines, carbon
efficient businesses, the production of the high-strength T-Steel
technology in Hungary and the provision of mining services housing in
Rockhampton, Queensland.
ENDS
For all media enquiries contact:
Bruce Nelson +61 (0) 423 403 449 (bruce(at)zakazuhka.com)
Caitlin Petrou +61 (0) 402 823 343 (caitlin(at)astraresources.com.au)
W: www.astraresources.co.uk
Disclaimer in regards to Forward-looking Statements
Certain statements included herein, including those that express
management's expectations or estimates of our future performance constitute
'forward-looking statements' within the meaning of applicable securities
laws. Forward-looking statements are necessarily based upon a number of
estimates and assumptions that, while considered reasonable by management
at this time, are inherently subject to significant business, economic and
competitive uncertainties and contingencies. Investors are cautioned not to
put undue reliance on forward looking statements. Except as required by
law, Astra Resources PLC does not intend, and undertakes no obligation, to
update any forward-looking statements to reflect, in particular, new
information or future events.
End of Corporate News
---------------------------------------------------------------------
22.02.2012 Dissemination of a Corporate News, transmitted by DGAP - a
company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
---------------------------------------------------------------------
157718 22.02.2012
Themen in dieser Pressemitteilung:
Unternehmensinformation / Kurzprofil:
Bereitgestellt von Benutzer: EquityStory
" alt="Northern Dynasty: Pebble Partnership Releases Environmental Baseline Document
Datum: 22.02.2012 - 18:00 Uhr
Sprache: Deutsch
News-ID 117455
Anzahl Zeichen: 10958
contact information:
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 332 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"DGAP-News: Astra Resources Plc: Astra acquires concentrated metal ore deposit in Norway"
steht unter der journalistisch-redaktionellen Verantwortung von
Astra Resources Plc (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
