DGAP-News: Deutsche Rohstoff AG: Devonian Metals signs Joint Venture Agreement with Glencore Canada
(firmenpresse) - Deutsche Rohstoff AG / Joint Venture
23.07.2010 08:37
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Deutsche Rohstoff AG: Devonian Metals signs Joint Venture Agreement with
Glencore Canada.
Further development of the Canadian Zinc / Lead Project near Wrigley.
Heidelberg. Devonian Metals Inc., has entered into a Joint Venture
Agreement with Glencore Canada, a subsidiary of Glencore International AG.
Deutsche Rohstoff AG currently has an 47.2% ownership position in Devonian
Metals Inc.
Glencore International AG is one of the world's largest suppliers of a wide
range of commodities and raw materials to industrial consumers. The
agreement would see Glencore invest a total of $10 million Canadian
(approx. 7.5 million Euro) in order to earn a 51% ownership position in the
Project. Currently, Devonian Metals Inc. owns 100% of the Project. The
Wrigley Joint Venture Agreement will continue over a three year period.
Highlights of the Agreement include:
- Glencore will invest $3 million CAD in 2010. The exploration program
will include 4,000 meters drilling and is expected to begin sometime in
July.
- Depending on the results, Glencore will invest a further $3.5 million
CAD in 2011 and $3.5 million CAD in 2012.
- Once Glencore has invested $5 million CAD, the company will have earned
a 25% ownership position in the Project. A $10 million CAD investment
will see the percentage rise to 51%.
- At the conclusion of the Agreement, Glencore will hold the right to
purchase the remaining 49% holdings of Devonian Metals Inc at a fair
market price as well as have 100% of any future production of zinc /
lead concentrate (off-take agreement).
The zinc, lead, silver mineralization near Wrigley in the Northwest
Territories was first discovered in the early 1970's by Cominco. Cominco
drilled 42 holes for an amount totaling 5,000 meters. Devonian Metals Inc.
(known previously as Aurora Resources Inc.) purchased the property from
Cominco in 2003 and began its own exploration program in 2007.
Using previous data from Cominco as well as its own results, Devonian
Metals Inc. published its own NI 43-101 compliant report with resource
estimate in May of 2010. This report is independent and at arms length to
the company. These previously drilled exploration targets have an estimated
3.1 million tons of ore at 9% zinc combined (zinc/lead, at 4% cut-off) in
the inferred and indicated categories. The zones are open to depth and in
all directions.
Deutsche Rohstoff AG is currently the largest single shareholder in
Devonian Metals. The balance of the shares are held by Devonian management
as well as private investors from Switzerland, Germany and Canada.
Thomas Gutschlag, Managing Director of Deutsche Rohstoff AG says of the
Joint Venture: 'We're very happy we could involve such a well known partner
as Glencore. This speaks to the quality of the project that such a world
wide company would make this investment after having done exhaustive due
diligence of the project.'
Glencore International AG (www.glencore.com), is a privately held company
owned by its management and employees and headquartered in Baar,
Switzerland , As part of its metals and minerals activities, Glencore owns
and operates zinc and lead production facilities, in countries including
Peru, Bolivia, Argentina, Kazakhstan and Italy.
Devonian Metals Inc. (www.devonianmetals.com) is a Junior Exploration
Company based in New Westminster (British Columbia), Canada. Devonian owns
100% of the project rights for the Wrigley property in the Canadian
North-West Territories.
Deutsche Rohstoff AG (Heidelberg, Germany), listed in the Entry Standard
segment of Frankfurt Stock Exchange, is establishing a new primary
producer. The company's focus is placed on gold, oil/gas and so called high
tech metals such as indium, gallium, rare earth metals, cobalt. All
projects are located in countries marked by political stability, the core
area being Germany. The business concept is based on redeveloping deposits
which have been well explored in the past. Production start is scheduled
for 2010.
Heidelberg, July 23, 2010
Dr. Thomas Gutschlag
+49 6221 652 4730
gutschlag(at)rohstoff.de
23.07.2010 08:37 Ad hoc announcement, Financial News and Press Release distributed by DGAP. Medienarchiv atwww.dgap-medientreff.deandwww.dgap.de---------------------------------------------------------------------------
Datum: 23.07.2010 - 08:37 Uhr
Sprache: Deutsch
News-ID 24334
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