Ridgeback signs Letter Of Intent (LOI) with Leading International Providers of Diamond and Gold Processing Technology
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Ridgeback signs Letter Of Intent (LOI) with Leading International Providers of Diamond and Gold Processing Technology
March 7th, 2011
Ridgeback Global Resources Plc., (“Ridgeback”) is today pleased to announce the a formal business collaboration agreement with one of the largest and world renown mining companies in Russia, a prominent provider of Diamond and Gold raw material processing technology, through the signing of a LOI with the intent to move towards to fully binding collaboration agreement, by way of a Joint Venture.
Discussions between both parties have been focused on the provision of all necessary mining and processing equipment by the joint venture partner to Ridgeback, in exchange for a royalty agreement based upon future production from Ridgeback’s current and future Diamond and Gold mining claims in the Kono district, Sierra Leone’s prominent diamond and gold mining area. Management expectations are that the proposed deal will bring capital investment equivalent to approximately $1.5m per concession, allowing the company to deploy the mining machinery necessary to move into a full production program within 3 months of signing the collaboration agreement.
What “full production” means, in conservative numbers, is that one concession will be able to process roughly 8,000 tons of ore per month. This ore, with a minimum yield of .35 carats of diamonds per ton and .35 grams of gold per ton will produce 2,800 carats of diamonds per month and 2,800 grams of gold per month, with a value of 840,000 USD (at 300 USD per carat) and 84,000 USD (at 30 USD per gram) per month respectively.
Actual geology reporting indicated ore yields of .5 - .85 carats per ton for diamonds and .5 - .75 grams per ton for gold. Using the higher value of these figures indicate a potential production of 6,800 carats of diamonds per month and 6,000 grams of gold per month, with a value of 2.04 million USD (at 300 USD per carat) and 180,000 USD (at 30 USD per gram) per month respectively.
These figures reflect production per concession.
High quality diamonds, like those found in Sierra Leone, sell on the market for roughly 2000 USD per carat, as opposed to the 300 USD per carat indicated.
The proposed Joint Venture partners have proven commercial mining technology that is currently being used on some of the largest operational diamond mines in the world. The technology is based upon the enrichment method of processing raw materials involving the application high-gradient magnetic separators and magnetic liquid separators with adjustable division of particles based upon specific weight categories. The technology is predominantly focused on the extraction of diamonds but does also allow for the potential extraction of gold particles and is therefore ideal for the Ridgeback claims.
Additionally, Ridgeback has received a commitment that as it expands its operations through additional concessions, the mining company will continue to provide full support of its technology and resources for the development of these concessions.
Tim Cocker, Ridgeback’s CEO, commented, “I am delighted we have begun formal proceedings to move forward with our pending joint venture agreement. This is an ideal mining partner for Ridgeback in Sierra Leone. We have been working on this opportunity for several months and I am pleased this is moving in such a positive direction. Ridgeback’s management is dedicated to move into full production as quickly as possible.”
About Ridgeback:
Ridgeback Global Resources Plc (“Ridgeback”), engages in the acquisition, exploration, and development of Gold and Diamond properties in Sierra Leone, South Africa and Canada.
Ridgeback has formed a strategic alliance with Ridgeback Mining Sierra Leone (RMSL), an established gold and diamond mining company in Sierra Leone, Western Africa. Ridgeback has agreed terms with RMSL for an initial term of 5 years, with 5 year extensions, to enter into 40% ownership Joint Venture agreements on all current and future gold and diamond mining concessions secured through the joint venture partnership.
The company also owns a 100% interest in the 3,524 hectare Ridgeback Diamond project in the Saskatchewan, a proven diamond rich area in Canada.
For more information about the company please visit www.ridgebackmining.com or
www.ridgebackmining.de or www.ridgebackmining.ru .
For any further information please contact our Investor Relations Team directly:
Investor relations phone: +44 (0)207 193 0540
Email: info(at)ridgebackmining.com
Germany office: +49 (0)7031 785 2789
Forward looking statements:
The Ridgeback Global Resources plc (“Ridgeback”) communications contains certain statements regarding future events (as understood in the U.S. Private Securities Litigation Reform Act of 1995) that express the beliefs and expectations of management. Such statements are based on current expectations, estimates and forecasts on the part of company management and imply various known and unknown risks and uncertainties, which may result in actual earnings, the financial situation, growth or performance to be materially different from the estimates expressed or implied in the forward-looking statements. Statements with respect to the future are characterized by the use of words such as "expect", "intend", "plan", "anticipate", "believe", "estimate", "may", "will", "should", "shall" and similar terms. Ridgeback is of the opinion that the expectations reflected in forward-looking statements are appropriate; however, it cannot guarantee that these expectations will actually materialize. Ridgeback does not assume any obligation to update these forward-looking statements or adapt them to future events and developments
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" alt="MINDORO RECEIVES $3.3M FROM EXERCISED WARRANTS
Datum: 07.03.2011 - 13:04 Uhr
Sprache: Deutsch
News-ID 28454
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