Atalaya Mining Regulatory News (ATYM)

2 Apr 2008 07:01

EMED Mining Public Limited02 April 2008 AIM: EMED 2 April 2008 EMED MINING PUBLIC LIMITED ("EMED Mining" or the "Company") PROYECTO DE RIO TINTO ("RIO TINTO MINE") UPDATE EMED Mining announces that it continues to make good progress towards triggeringits option for the acquisition of the Rio Tinto Mine in Spain that has thepotential to restart copper production. EMED Mining can report that thetechnical and economic assessments continue to deliver positive results and thatformal constructive engagement has commenced with all regulatory authorities andother stakeholders. The Company has consistently said that it is necessary that all conditionsprecedent be satisfied in order for the Company's shareholders to be asked tofully approve the exercise of the option and to re-start production at the RioTinto Mine. These conditions precedent include receipt of all regulatory permitsand other items including the arrangement of finance. This press announcement brings EMED Mining shareholders up to date on the statusof the principal outstanding conditions precedent and the implications for theexercise of the option to acquire the Rio Tinto Mine. Technical and Economic Assessment: The Company's understanding of the Rio TintoMine has improved to the point where the Company considers that most of theconditions precedent on technical and economic matters have been satisfied. Thisis based on specialist expert assessments conducted with the Company's projectadviser AMC Consultants (UK) Ltd. Updates will be published in the Annual Reportto be sent to shareholders in late April. Permitting: Formal applications have been submitted to the regulatoryauthorities. In the Company's view, the principal permitting matter to beresolved is the satisfactory resolution of legal disputes between theproject-vendor company Mantessur Andevalo S.L, ("MSA") and the mine-permittingauthorities. The resolution of this matter is being facilitated by EMED Miningand is a condition precedent. The Company's local subsidiary EMED Tartessus S.L("EMED Tartessus") is also preparing answers to requests made by the authoritiesfor further explanations on key aspects of the project restart. It will thenremain for EMED Tartessus to settle with the authorities the appropriate levelof financial guarantees and operational commitments for the tailings dam,environmental rehabilitation and personnel entitlements. EMED Tartessus is informal constructive discussions with the authorities on all financial guaranteesand operational commitments having completed studies regarding the likely costsand these are built into our current financing plans. Counterparty Settlements: Clarification on the Rio Tinto Mine ownershipstructure has been assisted by recent judicial decisions in Andalucia where theCourts have determined that control of the project-vendor company, MSA, shouldbe transferred to its principal financier. Whilst EMED Mining's agreements arewith MSA, regardless of who controls that company, the judicial decisions willhave the effect of replacing the current controlling shareholder of that companywith a party of significant industry stature and with whom EMED Mining'sshareholders, and likely Rio Tinto Mine off-take customers, have long-standingrelationships. EMED Mining awaits the necessary judicial execution of theCourt's determination which is expected within two months. EMED Mining isencouraged by these developments as disputes regarding control of theproject-vendor company, MSA, are now being settled by the Courts which willclarify the situation for all stakeholders and will allow EMED Mining to satisfyan outstanding condition precedent in a relatively short time frame. Restart Preparations: Detailed operational restart planning continues whilst allremaining conditions precedent are resolved to EMED Mining's satisfaction. Upontriggering of the option and the restart of production newly-appointed EMEDMining Chief Operating Officer Bill Enrico, now based at Rio Tinto, willassemble the future operational team at the Rio Tinto Mine. Restart plans arewell advanced and we anticipate production would be expected to commence 6months after exercising the option. Long lead-time repairs and spares have beenidentified and will be ordered to achieve the restart within six months ofpermits being finalized and the option being exercised. Finance: Major EMED Mining shareholders include international mining companiesOxiana and Gold Fields, mining-financiers Rand Merchant Bank and ResourceCapital Funds and investment institution Fidelity International. EMED Mining hasbeen encouraged by the further interest that has also been shown from a numberof additional potential investors and financiers and the Company continues tosupport detailed due diligence investigation by these newly interested parties. Current estimates of total funding required remain consistent with previouslyannounced figures of £60 to £80 million depending upon the speed with which weacquire the Rio Tinto Mine and move to 100% ownership. Finance plans are focusedon the following approach: • minimising expenditure pending the exercise of the option. The Company has so far avoided committing to any counterparty settlements; • all pre-permitting financing to be by way of equity or advances repayable with equity, to minimise finance risk; • exercising the option upon receipt of regulatory approval; and • post-permitting financing to be mainly by way of debt, so as to minimise equity dilution for EMED Mining shareholders given the potential rapid payback of investment. Annual General Meeting (AGM) on 4 June 2008 at Rio Tinto: The Annual Report andNotice of Annual General Meeting will be issued in late April for the meeting tobe held at Rio Tinto Mine on 4 June 2008. Shareholder Consideration of Board Resolution to Exercise Option: EMED Mining'sDirectors are confident that all outstanding conditions precedent are capable ofbeing satisfied. Preparations continue on the submission of a circular toshareholders detailing the Board's recommendation to trigger the option toacquire and restart production at the Rio Tinto Mine although that will now besubject to the necessary judicial execution of the Court's determination inAndalucia which is expected within two months, and resolving any otheroutstanding conditions precedent to EMED Mining's satisfaction. An independentCompetent Person's Report will be prepared and published in due course as partof the circular to shareholders. Mr Harry Anagnostaras-Adams, Managing Director of EMED Mining said: "When wearrived in Andalucia, the Rio Tinto Mine was regarded by most observers as beingunlikely to restart because of the historical disputes. EMED Mining can nowreport that it is now clear to most stakeholders that the Rio Tinto Mine willindeed restart. We remain optimistic that we will satisfy the remainingconditions precedent that will allow us to exercise the option as the Andaluciaauthorities become satisfied with our Company's credentials and as wedemonstrate our clear independence from previous owners." Mr Bill Enrico, Chief Operating Officer of EMED Mining said: "Since recentlymoving to Rio Tinto recently I have inspected the facilities and examined thevarious independent expert assessment reports. It is apparent to me that the RioTinto Mine can restart quite easily and quickly. The most important aspect is toestablish the right culture and team for the future. We will do that as soon aswe meet our conditions precedent and obtain the necessary permits to proceed.Our restart plans are well advanced and we anticipate production would beexpected to commence 6 months after exercising the option." -Ends- EnquiriesEMED Mining RFC Corporate FinanceHarry Anagnostaras-Adams Stuart Laing+357 9945 7843 +61 8 9480 2500www.emed-mining.com---------------------www.emed.tv------------- Fox-Davies Capital Parkgreen CommunicationsRichard Hail Justine Howarth / Erica Nelson+44 207 936 5220 +44 20 7851 7480 Notes to Editors: About EMED Mining Public Limited EMED Mining was admitted to trading on AIM in May 2005 following a placing ofits shares. In the two years since then the share price has increased from 8p tothe current 15.5p and market capitalisation has increased from approximately £4million to approximately £23 million. The Company is based in Cyprus and has astrong commitment to responsible development of metal production operations inEurope, with an initial focus on copper and gold. The Group's region of interest are the tectonic belts spanning across Europe andover to the Middle East. The strategy is to evaluate exploration and developmentopportunities in several jurisdictions throughout this quality mineral belt andto promote sustainable development practices through implementation of EuropeanUnion and other leading-edge international standards. The Company has, from theoutset, strictly implemented its Environmental & Community Policy whichincludes: • Integrating environmental management into our business, planning and reporting processes. • Promoting a strong environmental ethic throughout the company and the community. • Complying with, as a minimum, all applicable local and European Union laws and regulations. • Communicating with community stakeholders in a responsible and transparent manner. EMED Mining has now established a strong position in the following selectedzones: • Exploration areas in Slovakia are centred on a cluster of volcanic centres. Low-detection geochemical methods are being applied to these areas for the first time together with open pit bulk mining concepts. The principal targeted mineralisation style is low-grade, bulk-mineable porphyry gold. The company has announced gold discoveries at Biely Vrch, Kralova and Slatinske Lazy in Slovakia. • The mines in Cyprus and at Rio Tinto in Spain, located in the Iberian Pyrite Belt, are probably amongst the best known in the world. EMED Mining's goal is to restart copper production at its projects in both of these well-endowed, historical mining districts. Both Spain and Cyprus are progressive members of the European Union and EMED Mining has been made to feel welcome in both host countries. The styles of mineral deposits and production techniques are similar in both mining districts. • EMED Mining's main prospects in Georgia are gold prospects within the Upper Racha Licence, the country's largest minerals licence with many untested prospects. The Company has confirmed Russian Resources of 1.0 million ounces gold at the Zopkhito Prospect and discovered high grade mineralisation at surface at other prospects (detailed in 2006 Annual Report). • Exploration areas in Turkey were vended into 32%-owned KEFI Minerals Plc which was admitted to AIM in December 2006. KEFI Minerals owns carefully selected licence areas in Turkey, as well as an extensive proprietary database of regional and specific exploration data providing a pipeline of further projects to evaluate. The KEFI Minerals team has mobilized into the field to explore the company's tenements and to expand the portfolio of licenses as opportunities warrant. See www.kefi-minerals.com. For further information on the Company's activities, visit www.emed-mining.comor www.emed.tv. This information is provided by RNS The company news service from the London Stock Exchange