Orogen Gold Regulatory News (ORE)

8 May 2008 07:01

Aricom PLC08 May 2008 Press Release 8 May 2008 Aricom plc ("Aricom", "the Company", or "the Group") Interim Management Statement Aricom (LSE: ORE, OREW), the Anglo-Russian developer of mineral resources, istoday publishing its first Interim Management Statement as required by the UKListing Authority's Disclosure and Transparency Rules, relating to the periodfrom 1st January 2008 to date. Project Update Aricom has made good progress at Kuranakh following the commencement of theprocess of mining in 2007. Work on the crushing, screening and beneficiationunits continued in the period with the operation on track to produce acommercially saleable concentrate towards the end of June 2008, as previouslystated. Work on feasibility studies for the K&S and Garinskoye projects continued in theperiod. Aricom continues to investigate the possibility of building acentralised process plant to beneficiate the ores from the Kimkan, Sutara andGarinskoye open pits. During the period, Aricom made several significant acquisitions. In February,Aricom completed the acquisition of a further 29.4% of the company holding theGarinskoye licence for US$63.2 million in cash and 28.5 million in ordinaryshares, bringing the Group's interest in the project to 99.6%. In March, Aricomacquired for US$45m options to purchase two further licences - the GarinskoyeFlanks and Kostenginskoye licences - which would provide significant naturalexpansion potential to the existing K&S and Garinskoye projects and which, theGroup believes, would approximately double Aricom's attributable reserves andresources. The completion of the feasibility study for Aricom's proposed titanium spongeplant was announced in January as was the execution of the binding Memorandum ofUnderstanding with Aluminium Corporation of China, the largest non-ferrousmetals company in China, reflecting the intention of establishing and operatingthe plant through a joint venture. Corporate Update Save for the effects of the above transactions, the financial position of theGroup at the end of April is not materially changed from that reported at 31stDecember 2007. The Board believes that the Group has sufficient internal cashresources to meet all currently budgeted work programmes for at least a furtherperiod of twelve months. Aricom continues to review all financing options for the construction of the K&Sand Garinskoye projects and is now reviewing proposals from a number ofinvestment banks for the role of advising on obtaining the financing for theseprojects. Outlook The current outlook remains in line with previously stated expectations. Comment Jay Hambro, Chief Executive of Aricom, commented: "It has been an exciting period for Aricom. As we near the commencement of ourfirst iron ore sales, the global market for the product continues to appreciatewith reported long term contract price increases in excess of 70% and a spotmarket considerably in excess of that. Furthermore, by significantly bolsteringour asset base, we have established strong organic growth potential." For further information:Aricom plcCharlie Gordon, Investor Relations Officer Tel: +44 (0) 20 7201 8939 www.aricom.plc.ukAbchurchCharlie Jack/ George Parker Tel: +44 (0) 20 7398 7700 www.abchurch-group.com Notes to Editors Aricom currently operates four projects in the Amur region and the adjoiningJewish Autonomous Region. The Group's projects are Kuranakh, K&S, Garinskoye andBolshoi Seym and have combined estimated reserves and resources of over onebillion tonnes of iron ore and ilmenite ores. The location of the Group'sdeposits offers a significant logistical advantage, being close to theTrans-Siberian-Express and the Baikal-Amur Magistral railways. In March 2007, Aricom announced that they had purchased a majority holding inthe leading Russian mining design institute Giproruda, which employs 148 people. The Group announced in March 2008 that they had acquired options to purchasetwo further licences which, the Company believes, would approximately doubleAricom's attributable reserves and resources. China already accounts for 47% of all iron ore consumption, with this figureexpected to increase further as the Chinese economy continues to grow. In June2006, Aricom announced that they were diversifying production by entering into aMemorandum of Understanding with China's largest nonferrous metal companyChinalco, to co-operate in the design and development of a Titanium Spongeproduction plant in China. Aricom is headquartered in London, with a highly experienced board of Directorscomposed of UK and Russian citizens. The company moved from the AIM market tothe Main Board on October 29th 2007 and trades under the symbol ORE. For furtherinformation please visit www.aricom.plc.uk Forward-looking statements This Interim Management Statement contains forward-looking statements. Suchforward-looking statements, which reflect management's assumptions made on thebasis of information available to it at this time, involve known and unknownrisks, uncertainties and other important factors which could cause the actualresults, performance or achievements of Aricom or the market and economies inwhich Aricom operates to be materially different from future results,performance or achievements expressed or implied by such forward-lookingstatements. The forward-looking statements contained in this Interim ManagementStatement are made as at the date of this statement, and Aricom undertakes noobligation to update any of its forward-looking statements. This information is provided by RNS The company news service from the London Stock Exchange