DGAP-News: Energizer Resources Enters into Industrial Minerals Joint Venture with Australia's Malagasy Minerals
(firmenpresse) - DGAP-News: Energizer Resources Inc. / Key word(s): Joint Venture
Energizer Resources Enters into Industrial Minerals Joint Venture with
Australia's Malagasy Minerals
05.10.2011 / 14:00
---------------------------------------------------------------------
Energizer Resources Enters into Industrial Minerals Joint Venture with
Australia's Malagasy Minerals
NEWS RELEASE - October 5, 2011
Energizer Resources Inc. (TSX: EGZ) (OTCBB: ENZR) (FWB: YE5) ('Energizer'
or the 'Company')
is pleased to announce that it has entered into a binding Heads Of
Agreement ('HOA') for an industrial minerals exploration and development
joint venture with Australian company Malagasy Minerals Limited
('Malagasy') (ASX:MGY).
Under the HOA, a new joint venture company ('JV Co') will be formed and
owned 75% by Energizer and 25% by Malagasy. The JV Co will have the right
to explore for a defined group of industrial minerals (listed in full
below) and in particular vanadium, within specifically defined permits on
the newly expanded land position. The new land position covers an area
comprising of 2,119 claims and totals 827.7 square kilometers, which is
about 3.5 times the size of the Green Giant property.
Malagasy has a large and highly prospective land portfolio in Madagascar,
much of which is adjacent to the south and east of Energizer's Green Giant
property. While delineating Energizer's current NI 43-101 compliant
vanadium resource, the geological data strongly indicated that the main
vanadium trend continued immediately beyond the southern boundary (Jaky
Zone) of its Green Giant vanadium deposit. Malagasy has already confirmed,
through exploration results, extensive zones of vanadium mineralization on
its tenements located immediately south and adjacent to Energizer's land
position.
With the confidence the Company has in the metallurgical optimization
process currently being conducted as part of its Preliminary Economic (PEA)
Study, Energizer capitalized on this strategic opportunity to significantly
expand its current vanadium resource, thus securing its potential
market-leading position in vanadium.
The new joint venture represents a 'win-win' proposition for both
companies, as it is expected to expand the vanadium resource and accelerate
the search for other strategic and industrial minerals in Madagascar.
Kirk McKinnon, Chairman and CEO, commented, 'With the very significant
Malagasy land position, we have now secured a new source of vanadium along
with the high potential of discovering other strategic minerals. With
Malagasy as a partner, who has a well-established tenure in Madagascar,
Energizer is well-positioned to build on its exploration success.'
Joint-Venture Agreement Details
For the purposes of obtaining the right to explore for and subsequently
conducting all required exploration and development activities for
Industrial Minerals, the JV Co will enter into sub-leasing arrangements
with Malagasy and its Madagascar subsidiaries. Malagasy will retain title
to its tenement permits until Energizer or the JV Co has notified Malagasy
of its intention to proceed with a mining operation. Upon such
notification, Energizer and Malagasy have agreed to use every commercial
effort to complete all the requirements to obtain the relevant mining
permit(s) to allow the JV Co to undertake mining operations in the defined
area.
The HOA provides Malagasy with a free carried interest in the joint venture
until the delivery by the JV Co of a Bankable Feasibility Study ('BFS').
Upon the delivery of a BFS on any discovery, Malagasy will then be required
to contribute to ongoing development and mining operations in accordance
with the agreement and its 25% interest in the joint venture.
The HOA contains a standard dilution clause for non-participation whereby a
party's interest will convert to a 2% net smelter return royalty should
their participating interest fall below 10%.
Energizer will manage all operations undertaken by the JV Co.
Terms of Agreement
The HOA is subject to Energizer being satisfied with the outcome of its due
diligence enquiries in relation to Malagasy and its Madagascan subsidiaries
that hold the permits. Under the terms of the HOA, Malagasy will receive:
- A non-refundable deposit of US$250,000 on execution of the HOA;
- US$2,000,000 in cash and 7,500,000 Energizer shares upon signing of
definitive agreements and the successful completion of the due
diligence review.
The HOA - and any transactions contemplated by the HOA - remain subject to
Energizer and Malagasy obtaining any and all applicable regulatory
approvals, including those of the TSX.
Throughout the duration of the HOA, Malagasy will retain access to its
properties to carry out any exploration and development it chooses for all
other minerals including base metals, precious metals, platinum-group
elements, excluding only the vanadium and industrial minerals specified in
the list below.
List of Industrial Minerals
The following constitutes the industrial minerals as defined in the
Agreement with Malagasy:
Vanadium, Lithium, Aggregates, Alunite, Barite, Bentonite, Vermiculite,
Carbonatites, Corundum, Dimensional stone (excluding labradorite), Feldspar
(excluding labradorite), Fluorspar, Granite, Graphite, Gypsum, Kaolin,
Kyanite, Limestone / Dolomite, Marble, Mica, Olivine, Perlite, Phosphate,
Potash -Potassium minerals, Pumice Quartz, Staurolite, Zeolites
About Energizer Resources
Energizer Resources Inc. is a mineral exploration and development company
based in Toronto, Canada, which is developing its 100%-owned Green Giant
Vanadium Project located in Madagascar. The Green Giant vanadium deposit
is one of the largest known vanadium deposits in the world. In addition to
the Toronto Stock Exchange (TSX: EGZ), the Company's common shares trade
on the U.S. Over-The-Counter Bulletin Board under the symbol, ENZR, and on
the Frankfurt Exchange under the symbol, YE5.
For more information, please visit our website at
www.energizerresources.com, or contact:
Brent Nykoliation, Vice President of Business DevelopmentToll Free:
800.818.5442 or 416.364.4911Email: bnykoliation(at)energizerresources.com
or Kirk McKinnon, Chairman and CEO
Safe Harbour Statement: This press release may contain forward-looking
statements that may involve a number of risks and uncertainties. Actual
events or results could differ materially from expectations and projections
set out herein.
Forward-looking statements include, receipt of regulatory approval,
statements on the proposed use of proceeds; completion of financing on
terms proposed; the ability to raise additional funds as required; the
development potential and timetable of the Company's properties and
minerals; the current and future price of minerals the Company explores;
the estimated size of mineral deposits on the Company's properties; the
realization of those mineral deposit estimates; the timing and amount of
estimated future exploration, development and production; costs of future
exploration, development and production activities; success of exploration
activities; government regulatory matters; discussion of political and
environmental risks.
Forward-looking statements are based on the opinions and estimates of
management of the Company. Forward-looking statements are subject to known
and unknown risks that may cause actual results to be materially different
from stated opinions and estimates of management. Some of the Company's
more material risks are: availability and timing of external financing;
unexpected events and delays during exploration; receipt of government and
stock exchange approvals; results of current exploration activities; future
price of minerals; political risks in the locations of the Company's
properties; appreciation/depreciation of foreign currencies relative to the
United States Dollar (the Company's functional currency) and other risks
inherent in the mining and exploration industry.
This press release does not constitute an offer to sell or a solicitation
of an offer to sell any of the securities in the United States. The
securities have not been and will not be registered under the United States
Securities Act of 1933, as amended (the 'U.S. Securities Act') or any state
securities laws and may not be offered or sold within the United States or
to U.S. Persons unless registered under the U.S. Securities Act and
applicable state securities laws or an exemption from such registration is
available.
End of Corporate News
---------------------------------------------------------------------
05.10.2011 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
---------------------------------------------------------------------
141325 05.10.2011
Themen in dieser Pressemitteilung:
energizer-resources-enters-into-industrial-minerals-joint-venture-with-australia-s-malagasy-minerals
Unternehmensinformation / Kurzprofil:
Bereitgestellt von Benutzer: EquityStory
" alt="Solarmag change name to MagnInvest
Datum: 05.10.2011 - 14:00 Uhr
Sprache: Deutsch
News-ID 72904
Anzahl Zeichen: 5363
contact information:
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 193 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"DGAP-News: Energizer Resources Enters into Industrial Minerals Joint Venture with Australia's Malagasy Minerals"
steht unter der journalistisch-redaktionellen Verantwortung von
Energizer Resources Inc. (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
