Cloudified Holdings Limited Regulatory News (CHL)

17 Mar 2008 07:00

Churchill Mining plc17 March 2008 17th March 2008 AIM: CHL CHURCHILL MINING PLC ("Churchill" or "the Company") Tinfos AS makes strategic placement in Spitfire Resources Highlights • Tinfos AS of Norway invests AUD$1.73M in Spitfire Resources Limited ("Spitfire") at original IPO share price of AUD 20 cents and at premium to the market price at the time of placement • Churchill's holding in Spitfire moves from 40.1% to 35.65% but remains the company's largest shareholder Churchill Mining is pleased to advise shareholders that the large Norwegianmanganese alloy and metals producer Tinfos AS ("Tinfos"), has taken a 14%strategic shareholding in the recently listed ASX-company, Spitfire Resources,of which Churchill is the largest shareholder. Churchill's Managing Director Paul Mazak commented, "The decision to spin theSouth Woodie-Woodie manganese asset out of Churchill and to give it its ownfocus in Spitfire is already paying off, as evidenced by the Tinfos placement." Originally established in the 19th century as a hydro-electric power generationcompany, Tinfos is today a leading diversified industrial, trading and metals &alloys group which generated sales revenue of in excess of NOK7 billion(US$1.367 billion) in 2007 and a pre-tax profit of approximately NOK575 million(US$112.3 million) The Group's industrial operations are conducted through Tinfos Jernverk AS,which produces manganese alloys, and Tinfos Titan & Iron, which producestitanium slag and pig iron. Tinfos Jernverk AS is a major player in theproduction of silico-manganese, an alloy used in the making of steel. TheCompany is a world leader in the production of low-carbon silico-manganese forprimarily stainless steel. Tinfos's manganese plant is located in Kvinesdal on the southern tip of Norwaymaking it ideally placed to ship alloy products into Europe. The plant mostregularly produces about 180,000 tonnes of silico-manganese per annum but theplant's furnaces are able to be converted to produce high carbon ferro-manganeseat a production rate of 240,000tpa. Churchill Mining draws shareholders' attention to the following update releasedby Spitfire on the ASX today. SPITFIRE SECURES NORWAY'S TINFOS AS STRATEGIC SHAREHOLDER KEY POINTS • Tinfos to acquire 14% stake in Spitfire through $1.73M share placement at 20 cents. • Tinfos to consider providing future strategic support to Spitfire including technical assistance and funding. Australian exploration company Spitfire Resources Limited (ASX Code: SPI - "Spitfire") is pleased to announce that it has secured the strategic support ofthe diversified Norwegian-based industrial, trading and metals & alloys group,Tinfos AS ("Tinfos"), as its new major shareholder via a 14% share placement. Spitfire has agreed to make a placement of 8.65 million shares at 20 cents pershare to Tinfos, raising $1.73 million. The proceeds of the share placement willfurther strengthen Spitfire's cash position to in excess of $7 million and willbe used to accelerate the Company's manganese exploration activities in the EastPilbara region of Western Australia. In addition to acquiring the strategic interest in Spitfire, Tinfos has agreed: • to consider assisting Spitfire with future financing either by way of project mining finance or direct company capital injection to help Spitfire evaluate, explore and develop other manganese projects; and • to consider providing technical and funding support to Spitfire to assist it in evaluating and developing its South Woodie Woodie Manganese Project in Western Australia. Spitfire's Managing Director, Mr James Hamilton, said the Company was delightedto have secured the involvement of Tinfos, a leading supplier of metals andalloys and key player in the global manganese business, as a supportive majorshareholder. "We are pleased to welcome Tinfos as a new major shareholder and strategicpartner to help us with our manganese ambitions," Mr Hamilton said. "In addition to strengthening our cash position during a particularly difficultperiod in global equity markets, this share placement introduces a strongstrategic partner to the Company to support our forthcoming manganeseexploration activities," he continued. "Tinfos also understands and is supportive of Spitfire's secondary corporategoal, which is to bring in other assets to the company - even if they arenon-manganese related, Mr Hamilton said. "Ultimately, this partnership significantly increases the range of developmentoptions we have available to us at South Woodie Woodie should our forthcomingexploration programs be successful. "With the global manganese market continuing to strengthen on the back of strongdemand from the steel industry and tightening high-grade ore supply, Spitfire isnow ideally placed to capitalise given the support and knowledge of Tinfos," headded. ENDS Enquiries: Churchill Mining Plc Blue Oar Securities Parkgreen CommunicationsManaging Director - Paul G. Mazak Romil Patel Justine Howarth+61 (0)8 9388 0377 +44(0)20 7448 4000 +44 (0) 20 7851 7480 paul.mazak@churchillmining.com Olly Cairns +61 (0)8 6430 1631 Notes to editors Churchill Mining Plc listed on AIM in April 2005. South Woodie Woodie Given the increased prospectivity of South Woodie Woodie and Churchill'sincreasing focus on its Indonesian coal and coal bed methane projects, theCompany sold 80% of the project to Australian company Spitfire Resources Limited("Spitfire"). Spitfire, which listed on the ASX on the 12th December 2007, hasoutlined plans for an extensive drilling and mapping campaign during theupcoming 2008 field season. The South Woodie Woodie project covers approximately 1,390 square kilometres inthe East Pilbara region of Western Australia, and sits approximately 400kmsouth-east of Port Hedland in the highly prospective Pilbara manganese province. To read more about Spitfire go to: www.spitfireresources.com Sendawar - CBM The Sendawar Coal CBM project in Kalimantan, Indonesia, covers more than 800square kilometres of prospective ground and lies in close proximity to twooperating open-cut coal mines. The project is located approximately 50km fromthe Mahakam River. During Churchill's coal exploration programme, data collected during geophysicaland resitivity work, along with data collected from previous oil and gasexploration in the area; indicated that the area was highly prospective for CoalBed Methane. Churchill (70% of the CBM project) along with its Indonesianpartner RMU (30% of the CBM project) applied for and were granted Indonesia'sfirst CBM JEA license in September 2007. The CBM project has the potential tohost Gas-in-Place of 5.6 TCF. Churchill is currently conducting further studieson the CBM project before starting detailed field work. East Kutai Coal Project Churchill announced on 15 February 2007 that it had signed an ExclusivityAgreement with PT Techno Coal Utama to enable it to conduct due diligence workon the thermal coal project. In May 2007 Churchill announced a sales agreementhad been entered into to purchase a 75% interest in the Project, which has nowbeen finalised. Exploration and resource drilling continue at the project. This information is provided by RNS The company news service from the London Stock Exchange