Zimbabwe Acquisition and Market Update
(Thomson Reuters ONE) - Chromex Mining plc / Epic: CHX / Market: AIM / Sector: Mining & Exploration10 November 2009 Chromex Mining plc ('Chromex' or 'the Company') Zimbabwe Acquisition and Market UpdateChromex Mining plc, the AIM listed chrome mining company focussed inSouthern Africa, is pleased to announce that it has concluded abinding Heads of Agreement to acquire 49% of Falvect Mining (Private)Limited ('Falvect'), a company owned and operating in Zimbabwe for anominal consideration, and provide an update on its activities inSouth Africa.Under the terms of the acquisition, Chromex will have the exclusiveright to co-develop all Falvect chrome concessions in the Shurugwiregion and tribute agreements in the Ngezi area, and market 100% ofthe chrome products produced from those operations. In return, theCompany will provide working capital into Falvect and funding for thedevelopment of current projects and any additional acquisitions inZimbabwe, which is host to significant high grade chrome oredeposits. A technical review of the contained mineralisation willcommence once final agreements have been concluded. In line with thedevelopment of its business, Chromex is already investigating theeconomics of setting up beneficiation facilities in Zimbabwe.In South Africa the commissioning of the first phase of its Stellitechrome beneficiation plant was completed in August 2009. By thebeginning of November 2009, this facility was able to operate at fulldesign capacity, producing 42% and 44% metallurgical grade chromeconcentrate. All beneficiation to date has been fed from existingstockpiles at the Stellite mine, although due to on-going demand, theBoard expects to recommence mining operations in December 2009.Furthermore, the Company is currently finalising the design andcosting of Phase 2 of the current beneficiation plant to include adense media circuit with the ability to double current beneficiationcapacity. Importantly, in addition to the capacity increase, Chromexwill be in a position to market a sized lumpy chrome product inaddition to the chemical and metallurgical grade concentrates that itcurrently produces.On a more general level, 2009 has been a difficult year for the SouthAfrican chrome industry, combining general macro-economic uncertaintywith unprecedented turbulence in demand and price. In addition theSouth African mining industry has been significantly impacted by avery strong Rand, increasing costs and continuing power constraints.In spite of this Chromex has continued to spend capital on itsbeneficiation facilities and mine, and will continue to do so in thefuture so as to retain operating flexibility in an ever-changingenvironment. Its strategy remains to produce enough chrome toprovide positive cash flow, while retaining valuable chrome resourcesin the ground pending an upturn in prices.Additionally, the challenge to the Group's mining right atMecklenburg remains unresolved, largely due to delays in the processof providing evidence for the court. Chromex has complied with allrequirements within the stipulated time scales, and, on the basis ofour legal advice, the Company remains confident of a successfuloutcome.Chromex CEO Russell Lamming said, "The investment in Falvect is inline with our strategy of building a broad portfolio of chrome andrelated mineral assets across southern Africa. The timing of theacquisition is linked to the lifting of the Zimbabwean ban on exportsof chrome ore and fines, effective 1 November 2009 and will hopefullyallow us to expand our production capabilities going forward. Inspite of the challenging chrome market we have continued to invest inour operations and have a producing mine and operating beneficiationplant. Our aim is to continue to build our business, expand on ourportfolio and generate value for shareholders going forward." **ENDS**For further information please visit www.chromexmining.co.uk orcontact:Russell Lamming Chromex Mining plc Tel: +44 (0) 7810 870 587Brian Moritz Chromex Mining plc Tel: +44 (0) 7976 994300William Vandyk Astaire plc Tel: +44 (0) 20 7448 4400 Ocean Equities Limited Tel: +44 (0) 20Guy Wilkes 7786 4370Hugo de Salis/ Felicity St Brides Media & Tel: +44 (0) 20Edwards Finance Ltd 7236 1177Notes to EditorsChromex Mining, quoted on AIM, is a dedicated chrome mining companywith two primary projects on the Bushveld complex, South Africa andapproximately 41Mt resources under its control. The Company hascommenced production at its Stellite project on the Western Limb ofthe Bushveld complex, and plans to commence production at itsMecklenburg project on the Eastern Limb as soon as possible.---END OF MESSAGE---This announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Datum: 10.11.2009 - 08:01 Uhr
Sprache: Deutsch
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