Orogen Gold Regulatory News (ORE)

13 Nov 2008 07:00



Aricom plc 

("Aricom", the "Company", or the "Group")

Aricom signs Memorandum of Understanding with MCC

Aricom (LSE: ORE, OREW), the Anglo-Russian developer of mineral resources, is pleased to announce that it has entered into a non-binding Memorandum of Understanding ("MoU") with China Metallurgical Group Corporation ("MCC"), one of the largest equipment manufacturers in China and a leading Chinese contractor to the metals and mining industry.

The MoU relates to the construction of Aricom's proposed 10mtpa iron ore beneficiation plant to be located at the Group's K&S project. The MoU provides the basis for discussions between Aricom and MCC concerning the signing of an engineering, procurement and construction agreement ("EPC" contract) based on an internationally recognised form of contract (such as the International Federation of Consulting Engineers (FIDIC)) for fixed price, EPC/turnkey projects.

MCC is the leading state construction company in China with a focus on EPC, engineering services, equipment fabrication and resources investment. It has undertaken construction contracts for a significant number of iron ore and steel projects in China.

Comment

Jay Hambro, Chief Executive of Aricom, commented: 

"I am pleased that Aricom has entered into this memorandum with MCC, which is the largest state contractor in China. Despite the current financial market volatility, I believe in the strength of our project portfolio and any resulting construction contract would be a significant step forward for the development of the Aricom project portfolio"

For further information: 

Notes to Editors

Aricom is currently developing four mining projects in the Amur region and the adjoining Jewish Autonomous Region. The Group's projects, Kuranakh, K&S, Garinskoye and Bolshoi Seym have combined estimated reserves and resources of over one billion tonnes of iron ore and ilmenite ore. The location of the Group's deposits offers a significant logistical advantage, being close to the Trans-Siberian Mainline and the Baikal-Amur Magistral railways.

Aricom is headquartered in London, with a highly experienced board of Directors composed of UK and Russian citizens. The Company moved from the AIM market to the Main Board on 29 October 2007 and trades under the symbol ORE. For further information please visit www.aricom.plc.uk