Last checked at 1 Jun 2009 10:30
AIM: EMED 1 June 2009
CHAIRMAN'S AGM STATEMENT AND RESULT OF AGM
EMED Mining Public Limited (the "Company") is pleased to announce that its shareholders approved all resolutions proposed at its Annual General Meeting today.
The Managing Director's presentation to shareholders at today's Annual General Meeting will now be uploaded to the Company's website at www.emed-mining.com.
The following statement was made at today's AGM by EMED Mining's Chairman Ronnie Beevor -
Chairman's Address at 2009 Annual General Meeting
I hereby open and welcome everyone to the formal 2009 Annual General Meeting of EMED Mining Public Limited.
The global financial crisis has caused challenges for EMED Mining, following the substantial fall in the copper price, the collapse in junior equity markets and the consequent effect on our funding capability.
However, at EMED Mining we remain committed to our business strategy to build a European mining company focused on copper and gold. Despite the global financial crisis, EMED Mining has passed significant milestones at each of its two major projects: the Rio Tinto Mine in Spain; and at Biely Vrch in the Detva Gold Project in Slovakia. We also maintain maintain our commitment to advancing in Cyprus as and when feasible within the context of the political and commercial environment of the island as a whole.
In reviewing our activities last year it is notable that on 30 September 2008, EMED Mining completed the acquisition from the MRI Group of the remaining 49% of the Rio Tinto Mine for 39 million shares and €53 million cash on deferred settlement. Achieving 100% ownership of the Rio Tinto Mine clarifies the legal structure and is now facilitating the permitting process with the Junta (Government) of Andalucia. We believe we are now making constructive progress on permitting.
In Slovakia at Biely Vrch within the Detva gold project a substantial drilling program culminated in an initial JORC Code compliant mineral resource of 41.7 million tones at 0.8% gold, containing 1.1 million ounces of gold. The deposit is within a cluster of volcanic centres, and we will be testing more gold porphyry prospects during 2009. EMED Mining has established strong relationships with the Slovak government, the local communities, business chambers, scientific societies and other stakeholders in this historic mining area.
EMED Mining's Directors believe that focusing on these two projects cost-effectively is the appropriate strategy in the current global economic environment. The Board has approved a substantially reduced expenditure budget for 2009, but one that will allow still for considerable progress on the Rio Tinto Mine and Detva Gold Project.
Our 32%-owned associate KEFI Minerals plc, of which My Anagnostaras-Adams is Chairman, continues to explore in Turkey and has just in the past few days announced that it has been appointed the operator of an exploration joint venture in the Kingdom Saudi Arabia. As you can see , we maintain a pro-active approach where warranted despite the challenges of the global financial crisis.
The global financial conditions have contributed to the volatility in EMED Mining's share price over 2008. In May 2008 our share price reached 30.5p, and we were able to place 50 million shares at 20p to raise GBP10M that month. But by year-end our share price had slumped to 5.75p and it was impossible to raise equity funds from conventional sources. Instead we entered into a convertible secured loan facility of up to US$8.5 million with two of EMED Mining's larger shareholders, Resource Capital Funds of the USA and RMB Australia at the conversion price of 4.13p and with a number of conditions. This was approved by shareholders in March 2009.
Following these significant fund raisings and the acquisition of the remaining 49% of Rio Tinto, over 60% of EMED Mining's fully diluted share capital is held by Resource Capital Funds, MRI Group of Switzerland, OZ Minerals of Australia, RMB Australia and by Directors and management, providing the Company with a strong and supportive shareholder base.
I would particularly like to thank Harry Anagnostaras-Adams for his continuing dedication and hard work during 2008. Strong leadership, commercial and technical acumen have been vital in leading EMED Mining through the mining industry downturn and the financial markets squeeze.
We are fortunate to have such a strong and experienced management team led by Harry. I would like to thank everyone for their strong contributions in 2008 and ongoing commitment. Shareholders should be aware that most managers, as well as the directors, have accepted a 25% reduction in cash remuneration from March 2009. Two of these senior managers are here today, Ron Cunneen and Demetrios Constantinides.
Despite the global recession, EMED Mining will continue to progress its two core projects in 2009. We are well placed in our two key commodities, gold and copper. The gold price has recently hit record highs largely as a result of the economic crisis and the expectation of renewed inflation, and, at the current price of around US$900 per oz, Detva Gold is likely to be a commercially attractive project. Copper has risen significantly off its recent lows, reflecting its importance in the infrastructure building now being pursued by China and other nations around the world. Copper's recovery bodes well for the early restart of Rio Tinto.
I look forward to seeing you at our future Annual General Meetings and, hopefully one day, at a major new copper mine in Cyprus that our organization can contribute to. We all know that Cyprus was once a significant producer of metal and we have no doubt that it can again one day be a significant producer.
Ronnie Beevor
Chairman
1 June 2009
Enquiries
| EMED Mining | Fox-Davies Capital | RFC Corporate Finance | Bishopsgate Communications |
| Harry Anagnostaras-Adams | Jason Bahnsen | Stuart Laing | Nick Rome |
| +357 9945 7843 | +44 (0)207 936 5230 | +618 9480 2500 | +44 (0)207 562 3350 |