Company’s loss before tax narrows to RM1.66 million
Minetech Resources Berhad, a civil engineering specialist and bituminous products manufacturer, today announced that the Company registered a 43.2% rise in revenue for the first quarter ended 30 June 2022 (1Q FY2023) to RM24.05 million compared with RM16.80 million in the corresponding quarter of the last financial year (1Q FY2022).
Matt Chin, Executive Director of Minetech
For the quarter under review, the Company recorded a loss before tax (LBT) of RM1.66 million compared with LBT of RM4.35 million in 1Q FY2022.
On a segmental basis, Minetech’s civil engineering division posted revenue contribution of RM13.7 million for 1Q FY2023, a gain of 34.3% compared with RM10.2 million in 1Q FY2022. The manufacturing division, which produces bituminous products for pipe coating, waterproofing and sealing, recorded revenue contribution of RM5.85 million, a gain of 75.1% compared with RM3.34 million in 1Q FY2022.
Matt Chin, Executive Director of Minetech, said, “The civil engineering division’s contribution was supported by higher revenue from the Selinsing Gold Mine in the quarter under review compared to the corresponding quarter of the previous financial year as production regained traction while the manufacturing division saw a significant rise in revenue due to an increase in sales as a result of improved demand from water piping and road paving projects.”
“Recent news flow point to firmer domestic economic growth and the announcement of the MRT3 project together with the continuation of other large civil infrastructure projects is positive for the construction sector as there will be need for civil engineering services as well as bituminous products.”
“We will continue to be vigilant given the more challenging global economic outlook. We have rationalised our corporate structure and in recent years diversified into other businesses to enhance our financial performance while ensuring more stable recurring income. Our narrower losses for the quarter are a result of these measures.”
Zijin Mining Group Co., Ltd. (HKG:2899; SHA: 601899; Zijin Mining or The Company) announced its interim results for the six months ended 30 June 2022 (Reporting Period). The Company realised RMB132.46 billion in operating income, up 20.57% year-on-year, while net profit attributable to owners surged to RMB12.63 billion, representing an increase of 89.95% compared with the same period last year. The profit increase was largely driven by the completion of major mine projects, including Serbia Zijin Mining, Kamoa Copper in the Democratic Republic of the Congo (DRC) and Julong Copper in China, which have commenced production and reached their designated production capacities on schedule. During the reporting period, the production volume of mine-produced copper and mine-produced gold amounted to 410,000 tonnes and 27 tonnes, representing an increase of approximately 70.47% and 22.79%, respectively.
Zijin Mining 2022 Interim Results Highlights: For the six months ended 30 June 2022, the Group realised an operating income of RMB132.46 billion, representing an increase of 20.57% compared with the same period last year (same period last year: RMB109.86 billion).
For the six months ended 30 June 2022, the Group realised a profit before tax of RMB18.57 billion, representing an increase of 61.90% compared with the same period last year (same period last year: RMB11.47 billion).
For the six months ended 30 June 2022, the Group realised a net profit attributable to owners of the listed company of RMB12.63 billion, representing an increase of 89.95% compared with the same period last year (same period last year: RMB6.65 billion).
As of 30 June 2022, the Group’s total assets was RMB271.57 billion, representing an increase of 30.19% compared with the beginning of the year (beginning of the year: RMB208.60 billion).
As of 30 June 2022, the Group’s net assets attributable to owners of the listed company was RMB77.47 billion, representing an increase of 9.06% compared with the beginning of the year (beginning of the year: RMB71.03 billion).
CHEN Jinghe, Chairman of Zijin Mining, commented, “Our strong performance in the first half of 2022 is attributable to the strengths of the Company’s global growth strategy. By leveraging Zijin Mining’s strong financial resources and track record of mining expertise, we will continue to seek opportunities and add to our global asset mix. As the world races towards a ‘net-zero’ transition, we have also allocated resources globally to increase our competitiveness in new energy minerals. Looking forward, Zijin Mining will continue to work closely with in-country local communities and government authorities to ensure our mission of ‘Mining for a Better Society’.”
Heralding new energy minerals boom With a 15% equity stake in the DRC Manono Lithium-tin project and the completed acquisition of Neo Lithium Corp and its flagship 3Q Lithium Project in Argentina, the Company has continued to prioritize new energy minerals such as copper, lithium and other metallic minerals. Zijin Mining currently owns over 10 million tonnes of lithium carbonate equivalent resources, with long-term development plans to boost annual production capabilities to over 150,000 tonnes per year, laying the foundation for becoming a leading lithium producer and meeting growing demand amid the global ‘clean energy transition’.
Construction at the 3Q Lithium Project has accelerated and first-stage trials of brine mining and solar evaporation have been concluded. Completion of the 3Q Project and commercial production is planned for the end of 2023. The Company has also accelerated the construction and development of the Lakkor Tso project and Xiangyuan project, with the Company having finalised a 70% acquisition of the former and is near completion on a 71% acquisition of the latter.
Increased investment to tackle global climate change During the reporting period, the Company prioritized strict controls of pollution emissions. SO2 and NOx emissions intensity by revenue decreased by 25.59% and 4.22%, respectively. The Company’s investment in environmental protection measures also continued to increase during the first half of 2022, amounting to RMB577 million, of which RMB271 million was used for ecological restoration, representing an increase of 67% compared with the same period last year.
Zijin Mining’s efforts at the Kamoa-Kakula Mining Complex in the DRC have also ensured the project is on track to become one of the world’s ‘greenest copper producers’. With RMB120 million already invested as of the end of 2021, the Company continues to enhance and invest in the rehabilitation of the Mwadingusha, Inga G25 and related networks to realise the overall electrification of the mining fleet, and further reduce the GHG emissions per tonne of copper produced from the project.
During the reporting period, the Company obtained a 25.04% equity share in Fujian Longking Co., Ltd. (Longking) and secured controlling rights through corporate governance and other arrangements. Zijin Mining aims to leverage this new acquisition’s leading environmental management service expertise to further minimize the Company’s global carbon footprint; and promote Longking’s strategic ‘environmental protection + new energy’ transformation to achieve greater industrial synergy.
During the reporting period, the Company continued its biodiversity and restoration efforts, with a total area of restored vegetation amounting to 7.92 million m2, and over 839,000 trees planted.
Mining for a Better Society Adhering to the United Nations Sustainable Development Goals, Zijin Mining remains steadfast in promoting its core value of ‘Mining for a Better Society’. The Company’s efforts have been widely applauded for its contributions to the social and economic development of local communities and host countries where projects are located.
With global operations, the Company has continued to deliver on its social development and responsibility commitments, including the USD4.4 million development plan for the Musonoie community in the DRC and support of the ‘Sustainable Livelihoods Program’ at the Kamoa-Kakula Mining Complex providing approximately 12,000 community members with clean water. Zijin Mining also supports the coffee growers of Western Antioquia, Colombia, through training, construction of infrastructure and maintenance of coffee plantations, helping coffee-growing families increase their scale and ability in ‘going abroad’. In Serbia, the Company also maintains investments for environmental protection and community support, amounting to over USD200 million since 2018. During the reporting period, the Company also launched the ‘For a Better Future Program’ to support local Serbian students, by offering scholarships and providing school supplies.
ZOU Laichang, President of Zijin Mining and Director of the ESG Management Committee, commented, “We have made significant steps towards our goal of ‘Mining for a Better Society’ as Zijin Mining strives for even higher-quality sustainable development. The Company actively promotes local industries, local employment and local procurement policies across our global network, aiming to contribute to global economic growth and supporting the betterment of all people in all countries.”
Company’s sole shareholder, Lee Hon Kit, to receive A$5.0 million in new Nanopac shares from sale
Alaska Mining Sdn Bhdis pleased to announce that its sole shareholder, Lee Hon Kit, is selling a 51% interest in the Company amounting to A$5.0 million (RM15.2 million) under a share sale agreement to Nanopac Alaska Sdn Bhd (NASB).
Director of Nanopac Alaska Sdn Bhd Henry Cheang; Managing Director of Alaska Mining Sdn Bhd Lee Hon Kit; Acting CEO of Nanopac Alaska Sdn Bhd Tobby Tan, and Chairman of Nanopac Innovation Limited, Dato’ Dr Cheng Kok Leong[L-R]
NASB is a unit of Nanopac Innovation Limited, which is listed on the Sydney-based National Stock Exchange of Australia. Nanopac principally engages in the research and development, manufacturing, distribution and servicing of nanotechnology materials and products. Nanopac’s other businesses include Nano-Solar panels and raw materials for paint industry. Mr. Lee is the sole shareholder of Alaska Mining, which is an earthworks and mining specialist as well as a trader of a variety of goods and logistics services provider.
Under the agreement, the sale of the 51% interest in Alaska Mining by Mr. Lee to NASB will be satisfied through the issuance of new shares in Nanopac to be paid in two tranches. The first tranche of new shares amounting to A$2.5 million (RM7.77 million) will be paid up front following the share sale agreement while the second tranche of new shares amounting to A$2.5 million (RM7.77 million) will be paid out after the Company has achieved A$5.0 million (RM15.2 million) in net profit. As part of the share sale agreement, Mr. Lee will be appointed the managing director of Alaska Mining.
Alaska Mining has been granted rights to mine sands to be processed into silica and ilmenite, from which a Chinese business group has agreed to an offtake agreement in relation to part of the ilmenite produced.
Mr. Lee expressed that he is looking forward to working with NASB and Nanopac to grow the mining business and at the same time ensure there is a steady flow of silica for Nano-Solar panel production and ilmenite for its paint products.
“This acquisition is advantageous to Nanopac as this secures a steady flow of raw materials for Nano-Solar and existing line of products, which it would otherwise have to source through third parties.”
“The mining operations will also give Nanopac a source of recurring income as the silica and ilmenite that it does not require will be sold to others while ensuring that the mining operations remain commercially sustainable, as the offtake agreement with the Chinese business group shows.”
Mr. Tobby Tan, Acting Chief Executive Officer of NASB said, “We welcome Mr. Lee to the Nanopac family and we have no doubt that with his knowledge and experience, we will be able to grow the mining business to greater heights. We also believe that the acquisition of the stake will add to our production capabilities and is positive for the growth of Nanopac’s solar panels and paints businesses.”
Aluminum Corporation of China Limited (Chalco or the Company)(NYSE: ACH; HKEx: 2600; SSE: 601600) today announced that it has notified the New York Stock Exchange (NYSE) on August 12, 2022 (U.S. Eastern Time) of its proposed application for voluntary delisting of its American depositary shares (the ADSs) from the NYSE and deregistration of such ADSs and the underlying overseas listed foreign shares (the H Shares, with a par value of RMB1 each) under the U.S. Securities Exchange Act of 1934, as amended (the Exchange Act). Due to a number of considerations, including the limited trading volume of the ADSs of the Company as compared to the worldwide trading volume of H Shares of the Company, and the considerable administrative burden and costs associated with maintaining the listing of the ADSs on the NYSE and the registration of the ADSs and the underlying H Shares with the U.S. Securities and Exchange Commission (the SEC) and complying with the periodic reporting and related obligations under the Exchange Act, the board of directors (the Board) of the Company approved the delisting of the ADSs from the NYSE and the deregistration of the ADSs and underlying H Shares under the Exchange Act.
As such, the Company intends to file a Form 25 with the SEC on or around August 22, 2022, to delist its ADSs from the NYSE. Such delisting is expected to become effective ten days after the filing of Form 25. The last trading day of ADSs on the NYSE will be on or about 1 September 2022. On and after such date, the ADSs of the Company will no longer be listed on the NYSE and whether or not the Company’s ADSs will be traded on the over-the-counter market thereafter will depend on the actions of shareholders and independent third parties, without the Company’s involvement.
After the delisting becomes effective, once the Company satisfies the conditions for deregistration, the Company intends to file a Form 15F with the SEC to deregister the ADSs and underlying H Shares under the Exchange Act. Thereafter, the reporting obligations for the Company under the Exchange Act will be suspended unless Form 15F is subsequently revoked or rejected. The deregistration and the termination of the reporting obligations of the Company under the Exchange Act are expected to become effective 90 days after the filing of Form 15F. Upon the filing of Form 15F, the Company will make available the information required by Rule 12g3-2(b) under the Exchange Act on its website at www.chalco.com.cn. The Company, as a listed issuer, will also continue to comply with its financial reporting and other obligations under the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the “Listing Rules”).
The Company intends to terminate its ADSs program in an appropriate manner in accordance with the deposit agreement in due course after the delisting of the ADSs from the NYSE.
The Company reserves its right in all aspects to postpone or withdraw the above filings prior to their effectiveness; if necessary, the Company will make any further announcement as required by the Listing Rules and other applicable laws.
ABOUT CHALCO Chalco is a leading enterprise in the non-ferrous metal industry in China, ranking among the top in the global aluminum industry in terms of comprehensive strengths, and is a large manufacturer and operator with the integration of exploration and mining of bauxite, coal and other resources; production, sales and technology research of alumina, primary aluminum, aluminum alloy and carbon products; international trade and logistics services, as well as electricity generation from coal and new energy.
CAUTIONARY STATEMENT FOR PURPOSES OF THE “SAFE HARBOR” PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 This announcement may contain, in addition to historical information, “forward-looking statements” within the meaning of the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995 and Section 27A of the U.S. Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934. These forward-looking statements are based on the Company’s current assumptions, expectations and projections about future events. The Company uses words like “believe”, “anticipate”, “intend”, “estimate”, “expect”, “project” and similar expressions to identify forward-looking statements, although not all forward-looking statements contain such words. These forward-looking statements are necessary estimates reflecting the judgment of the Company’s senior management and involve significant risks, both known and unknown, uncertainties and other factors that may cause the Company’s actual performance, financial condition, or results of operations to be materially different from those suggested by the forward-looking statements. Except as required by law, the Company undertakes no obligation and does not intend to update any forward-looking statement, whether as a result of new information, future events or otherwise.
For enquiries, please contact: Aluminum Corporation of China Limited Mr. Ge Xiaolei, Company Secretary Tel: (86-10) 8229 8322 Fax: (86-10) 8229 8158 Email: xl_ge@chalco.com.cn; IR@chalco.com.cn
SGX-listed Metech International Limited (“Metech” or the “Company”, and together with its subsidiaries, the “Group”), is pleased to announce that the lab-grown diamond facilities in Singapore of its joint venture company, Asian Eco Technology Pte. Ltd. (“Asian Eco”), can commence commercial production, following the receipt of the fire safety certificate issued by Singapore Civil Defence Force.
A pilot test of the lab-grown diamond facilities has been successfully completed.
As announced previously, Asian Eco entered into a 3-year lease agreement for an industrial property located at Kallang for the production of lab-grown diamonds.
A wholly-owned subsidiary, Zhongxin Minghua (Shanghai) International Trade Co., Ltd. (formerly known as Nolash (Shanghai) Pte Ltd.), is now a registered member of the Shanghai Diamond Exchange with effect from 13 July 2022.
Growing Industrial Applications of Lab-Growth Diamonds
Diamonds are more widely known to be used in jewellery but diamonds are also commonly used for industrial applications in oil & gas, medical equipment, aerospace, among others.
With an impressive combination of chemical, physical and mechanical properties that are ideal for a wide array of industrial applications, there is increasing commercialisation of scientific discoveries for the industrial applications of diamond in the next generation of semiconductors, aerospace, electric vehicles, medical equipment, among others.
To harness such opportunities, Asian Eco has previously entered in various memorandum of understandings and collaboration agreements with strategic partners and prominent institutions in the areas of research and development and commercialisation.
Commenting on the commencement of Asian Eco’s commercial production of lab-grown diamonds in Singapore, Ms. Samantha Hua, Executive Director and Chief Executive Officer of Metech, said: “This is a major milestone in our business strategy, accelerating our growth ambitions within the global lab-grown diamond industry that continues to exhibit positive growth prospects with its sustainability features.
Aligned with the macro trends of the global lab-grown diamond market, we aim to progressively scale up our production capabilities in Singapore and harness new opportunities.”
About Metech International Limited (Bloomberg: CENR:SP / Reuters: METE.SI / SGX Stock Code: V3M)
Listed on the Singapore Stock Exchange, Metech International Limited (“Metech”) has a multi-pronged business model that aligns with the macro trends in the area of environmental and sustainability.
While proactively evaluating new business opportunities to broaden its business model, Metech continues to build on its capabilities and extend the value propositions of its business units.
Media & Investor Contacts: This announcement has been prepared by the Company and reviewed by the Company’s Sponsor, Novus Corporate Finance Pte. Ltd. (the “Sponsor”), in compliance with Rule 226(2)(b) of the Singapore Exchange Securities Trading Limited (the “SGX-ST”) Listing Manual Section B: Rules of Catalist.
This announcement has not been examined or approved by the SGX-ST and the SGX-ST assumes no responsibility for the contents of this announcement, including the correctness of any of the statements or opinions made or reports contained in this announcement.
The contact person for the Sponsor is Mr. Pong Chen Yih, Chief Operating Officer, at 7 Temasek Boulevard, #18-03B Suntec Tower 1, Singapore 038987, telephone (65) 6950 2188.
Issued on behalf of Metech International Limited by 8PR Asia Pte Ltd. Mr. Alex TAN Mobile: +65 9451 5252 Email: alex.tan@8prasia.com
Tocantinzinho Gold Project financed for construction
Existing cash on hand and committed capital from financing package totals over $535 million providing an estimated $81 million in cash and contingency
Continued support from Eldorado Gold via participation in equity financing
Franco-Nevada providing a $353 million full financing solution including stream, debt, and equity
La Mancha becoming strategic investor and long term partner who will hold 25.0% of common shares
Project early works on budget and nearing completion enabling full construction to commence in Q3-22
Detailed engineering and procurement phase progressing in-line with Feasibility Study estimates (All amounts are in US dollars unless stated otherwise)
G Mining Ventures Corp. (GMIN or the Corporation) is pleased to announce that the Corporation has entered into binding commitments with respect to a comprehensive construction financing package totaling $481 million for the development and construction of its 100% owned Tocantinzinho Gold Project (TZ or the Project). The Project remains on track to achieve production in the second half of 2024. Securing financing on schedule, despite a volatile market environment, represents a strong statement of support for the management team, as well as the technical and econom
Financing Package Highlights – $481 million
$116 million equity financing via a private placement with strategic investors (the “StrategicInvestors”) priced at C$0.80 per common share
$68.8 million investment by La Mancha Investments S.à r.l. (“La Mancha”)
$27.5 million investment by Franco-Nevada Corporation (“Franco-Nevada”)
$20.0 million investment by Eldorado Gold Corporation (“Eldorado Gold”)
$250 million gold stream with Franco-Nevada
Represents one of Franco-Nevada’s largest gold streams on a primary gold mine
$75 million senior secured term loan from Franco-Nevada
$40 million in equipment financing with Caterpillar Financial Services Limited (“Cat Financial”)
The gold stream and term loan financings are closed, and the remainder of the financing package is expected to close in Q3-22
Louis-Pierre Gignac, President & Chief Executive Officer of GMIN, commented:“We are delighted to welcome two new cornerstone partners in Franco-Nevada and La Mancha who are committed to the long-term success and growth of GMIN. Their commitment, along with Eldorado Gold’s continued support, further validates the management team and the work done to advance the Project since its acquisition in 2021. Building on our positive Feasibility Study released earlier this year, this financing package marks the next step in the progression of GMIN and allows us to continue to unlock value at TZ. The imminent development of TZ will deliver value to our growing stakeholder group, including generating attractive job opportunities and economic prosperity in Pará State.”
Paul Brink, President & Chief Executive Officer of Franco-Nevada, commented:“We are delighted to support GMIN with this construction financing package. Tocantinzinho is an attractive project in a prolific district and located in a good jurisdiction. The GMIN team has a track-record as one of the most capable mine building teams in the industry. The debt and equity investments that accompany our stream investment reflect our confidence in the capabilities of the GMIN team and in the potential of the project.”
Karim Nasr, Managing Partner of La Mancha Capital Advisory LLP, commented:“The La Mancha Group has a long track record of successful investments in the mining industry, and we look to build further on this track record with La Mancha’s investment in GMIN. We are impressed with the unique skillset of the management team, and with both the quality and potential of TZ. We look forward to being a part of GMIN’s journey towards becoming an intermediate producer through the development of TZ, and as the Corporation evaluates future growth opportunities beyond this initial Project.”
Overview of Project Financing
As detailed in the Feasibility Study published in Q1-2022, the initial Project capital cost is estimated to be $427 million, which is inclusive of $38 million of contingency (10% before taxes). After taking into consideration $49 million of payable taxes, the total funding required is $476 million. GMIN is eligible for $18 million of recoverable taxes and tax credits, which have not been deducted in calculating development capital required as this will only be received after the commencement of production.
As of June 30, 2022, GMIN has incurred capital expenditures of $21 million, resulting in remaining estimated capital costs of $455 million, or $417 million exclusive of $38 million of contingency. Procurement to date totaling $71 million is tracking on budget and has largely focused on major equipment for the process plant and mining equipment. GMIN is progressing well on its procurement strategy that focuses on maximizing Brazilian sources when sourcing equipment and supplies.
The total financing package of $481 million, combined with $54 million of cash on hand as at June 30, 2022, totals $535 million of available capital, and provides GMIN with committed capital sources in excess of the remaining estimated capital balance. It is estimated that $32 million of the equipment financing provided by Cat Financial will be utilized during the construction period, with $8 million to stay in reserve.
After taking into consideration corporate costs, working capital, and debt service, GMIN estimates cash and budgeted contingency totaling $81 million (18%), as detailed below.
Figure 1 – Sources and Uses of Funds Summary
Financing Package Summary
In connection with the financing package, GMIN and Franco-Nevada have executed final documentation with respect to: (i) a definitive purchase and sale agreement under which Franco-Nevada (Barbados) Corporation will pay GMIN a deposit of $250 million to acquire a percentage of payable gold production from TZ, (ii) the provision by Franco-Nevada, through one of its wholly-owned subsidiaries, of a senior secured term loan in the principal amount of $75 million, and (iii) the purchase by Franco-Nevada, on a private placement basis, of approximately 44.7 million GMIN common shares at a subscription price of C$0.80 per share, for total proceeds of $27.5 million (C$35.8 million).
Concurrently, GMIN, La Mancha, and Eldorado Gold have executed final documentation with respect to the purchase by La Mancha and Eldorado Gold, on a private placement basis, of 111.9 million and 32.5 million, respectively, GMIN common shares at a subscription price of C$0.80 per share, for gross proceeds of $68.8 and $20.0 million (C$89.5 and C$26.0 million), respectively.
Equity Private Placement – Strategic Investors
C$151.3 million ($116.4 million) in equity financing, priced at C$0.80 per share, via a non-brokered private placement
La Mancha has agreed to subscribe for a total of 111,879,265 common shares of GMIN for aggregate proceeds of C$89.5 million ($68.8 million)
La Mancha will subscribe for 82,875,000 common shares on closing to hold 19.8% of GMIN’s common shares outstanding, and subscribe for a further 29,004,265 common shares to hold 25.0% following approval of the disinterested GMIN shareholders
GMIN and La Mancha will enter into an investor rights agreement that grants La Mancha the right to nominate two directors to GMIN’s Board of Directors, as long as La Mancha maintains a minimum ownership of 15%
Karim Nasr, Managing Partner of La Mancha Capital Advisory LLP, will be nominated on the closing date of the first tranche, with a second director to follow at a later date
La Mancha will be granted customary anti-dilution, registration, and information rights, and has agreed to a 24-month standstill period that includes restrictions on dispositions
Franco-Nevada has agreed to subscribe for 44,687,500 common shares of GMIN for aggregate proceeds of C$35.8 million ($27.5 million)
Franco-Nevada will hold 9.9% of GMIN’s common shares outstanding
GMIN and Franco-Nevada have entered into an investor rights agreement that grants Franco-Nevada a right of first refusal on any future royalty and stream sales by GMIN as long as Franco-Nevada maintains a minimum ownership of 5.0% of GMIN’s common shares outstanding
Franco-Nevada has also been granted customary anti-dilution rights and has agreed to a 24-month standstill period that includes restrictions on dispositions
Eldorado Gold has substantially exercised its anti-dilution right and has agreed to subscribe for 32,500,000 common shares of GMIN for aggregate proceeds of C$26.0 million ($20.0 million)
Eldorado Gold will hold 17.7% of GMIN’s common shares outstanding
Members of the Gignac Family, along with GMIN directors and officers (collectively “Insiders”) hold 34,722,869 common shares, which will represent 7.8% of GMIN’s common shares outstanding pro-forma the transaction. To further align with the Strategic Investors, the Insiders have agreed to a 24-month restriction on sales or transfers of any GMIN securities.
The private placement is subject to the acceptance of the TSX Venture Exchange (“TSXV”) and will be completed in two tranches, with the first tranche closing in July 2022. The second tranche, which will consist of the issuance to La Mancha of approximately 29.0 million GMIN common shares for proceeds of approximately C$23.2 million ($17.8 million), and which will be subject to a majority approval of the disinterested GMIN shareholders pursuant to the policies of the TSXV, is expected to close in Q3-22. At the time of writing, voting support agreements that comprise more than 45% of the disinterested GMIN shareholders have been entered into with the Strategic Investors and Insiders.
Gold Stream – Franco-Nevada
Deposit: $250.0 million
Deliveries: 12.5% of the gold production from TZ, reducing to 7.5% after delivery of 300,000 ounces
Ongoing Payments: 20% of the spot gold price at the time of delivery
ESG Initiatives: Up to $250,000 per year for four years for investment towards environmental initiatives and social projects in the communities surrounding TZ
Drawdown of the deposit is subject to satisfaction of certain customary conditions for a transaction of this nature
Term Loan – Franco-Nevada
Facility Amount: $75.0 million
Term: 6.0 years
Availability Period: Multi-draw facility available after the stream deposit is fully drawn, at GMIN’s discretion for up to 3.5 years
Standby fee on undrawn amounts of 1.0% per annum, which GMIN has the option of accruing and capitalizing for the first 2-year period
Coupon: 3-Month Term Secured Overnight Financing Rate plus a margin of 5.75% per annum pre-project completion, with the margin reducing to 4.75% after completion
2-year interest deferral period during which GMIN has the option of accruing and capitalizing interest
Amortization: Principal, accrued interest, and accrued fees are repayable starting in December 2025 as follows:
10 equal quarterly payments equal to 7.5% of the balance outstanding; and
Bullet payment equal to 25.0%
Original Issue Discount: 2.0% applicable on amounts drawn
Franco-Nevada will be granted 11.5 million warrants with a five-year term and an exercise price of C$1.90 per share
Exercise price equals the exercise price of the existing 37.5 million warrants issued as part of GMIN’s September 2021 financing, the only currently outstanding warrants
Warrants will have a cashless exercise mechanism to enable Franco-Nevada to avoid its holdings from exceeding 9.9% of GMIN’s common shares outstanding at time of exercise
Equipment Financing
Up to $40 million in equipment financing via a credit-approved term sheet with Cat Financial, for the supply of Caterpillar primary and ancillary mining fleet and construction machinery
Pending completion of final documentation, the Cat Financial lease financing will be available to the Corporation upon a final construction decision by GMIN’s Board of Directors and other customary conditions
Tocantinzinho Development Update
Since the most recent project update released on May 26, 2022, GMIN has advanced the following aspects of the Project:
Procurement
Procurement to date totals $71 million, is tracking on budget, and has largely focused on major equipment for the process plant and mining equipment
Purchase orders for equipment with long lead times have been executed to achieve the construction schedule in order to achieve production in the second half of 2024
Equipment deliveries will be staggered over time with first machines delivered to site in September 2022
Primary mining equipment is currently being funded using cash on hand, but will be refinanced through the abovementioned $40 million equipment financing package
Power Supply
Detailed engineering of transmission line and Novo Progresso substation is complete
Construction – Early Works Activities
Exploration camp capacity has been increased to 350 beds with the addition of 10 dormitories
New water well, lunchroom and kitchen equipment in operation
Temporary explosives storage facility is progressing, with berms in place and fencing to be completed
The logistics base in Moraes Almeida is nearing completion
Once delivered, the facility will be managed by the logistics freight forwarder, which will allow for consolidation of goods for delivery to site
Access road upgrades have continued with the arrival of the dry season
Figure 2 – Expansion of Exploration Camp
Figure 3 – Freight forwarder base in Moraes Almeida
Figure 4 – Access Road Upgrade
Tocantinzinho Benefit to Local Community
Local Employment
The Project is expected to create up to 1,200 jobs during the construction phase and over 600 permanent jobs during the operation stage
A minimum of 30% of employees are to be hired from the local communities of Itaituba, Morais Almeida, Jardim de Ouro and Mamoal
In addition to the training during the construction phase, GMIN plans to invest over 85,000 hours on internal training to develop the skills of the local workforce
Community Programs
GMIN provided internet access and IT infrastructure for Escola Municipal de Ensino Fundamental César Almeida, the local elementary and middle school of Moraes Almeida
The school has 1,700 enrolled students and 80 staff members
GMIN will support local community requests related to education, health and cultural initiatives through provision of funding and expertise
Franco-Nevada is providing up to $250,000 per year, for four years, for investment towards environmental initiatives and social projects in the communities surrounding TZ
Figure 5 – Mr. Severino, Director of Education of Itaituba, with Louis-Pierre Gignac
Other Long-term Local Benefits
Creation of long-lasting shared infrastructure, such as the 190km transmission line
In addition to powering the project through 80% renewable energy, the transmission line will become part of the state utility infrastructure, providing reliable power to the region
Construction of a bypass road in Jardim do Ouro to improve safety by diverting heavy traffic from current industrial activities by other companies (and future GMIN operations) away from the village
GMIN will prioritize local procurement to enable capacity building and business development
Advisors:
BMO Capital Markets is acting as exclusive financial advisor to GMIN in connection with the La Mancha strategic investment. Stikeman Elliott LLP, Blake, Cassels & Graydon LLP, Grebler Advogados and Mattos Filho Advogados acted as GMIN’s legal advisors.
Timetable and Next Steps
With the financing package secured, the Corporation will be focused on the following activities:
Positive construction decision;
Finalization and results of 10,000-meter exploration and drilling program in Q3-22;
Completion of detailed engineering through H1-23; and
Expected first gold production in H2-24 with the first year of full production in 2025.
Tocantinzinho Financing Package Conference Call Details GMIN will host a conference call to discuss the financing package. Date: Monday, July 18, 2022 Time: 10:30 a.m. Eastern Time.
Participants may join the call as follows: Dialing North American Toll Free: +1-888-506-0062 International: 973.528.0011 Access Code: 564993
For those unable to participate, a web-based archive of the conference call will be available for playback through Tuesday, July 18, 2023 at the same Webcast URL above. Also, an audio replay will be available from 1:30 p.m. Eastern Time on Monday, July 18, 2022 through Monday, August 1, 2022. To access the replay, please call 1.877.481.4010 (U.S. & Canada) or 1.919.882.2331 (International) and enter confirmation code 46159 #.
Additional Information For further information on GMIN, please visit the website at www.gminingventures.com or contact:
Jessie Liu-Ernsting Director, Investor Relations and Communications 647.728.4176 info@gminingventures.com
About G Mining Ventures Corp.
G Mining Ventures Corp. (TSXV: GMIN) (OTCQX: GMINF) is a mineral exploration company engaged in the acquisition, exploration and development of precious metal projects, to capitalize on the value uplift from successful mine development. GMIN is well-positioned to grow into the next mid-tier precious metals producer by leveraging strong access to capital and proven development expertise. GMIN is currently anchored by its flagship Tocantinzinho Project in mining friendly and prospective Pará State, Brazil.
About Franco-Nevada
Franco-Nevada is the leading gold-focused royalty and streaming company with the largest and most diversified portfolio of cash-flow producing assets. Its business model provides investors with gold price and exploration optionality while limiting exposure to cost inflation. Franco-Nevada is debt-free and uses its free cash flow to expand its portfolio and pay dividends. It trades under the symbol FNV on both the Toronto and New York stock exchanges. Franco-Nevada is the gold investment that works.
About La Mancha and La Mancha Fund SCSp
La Mancha is a wholly-owned subsidiary of La Mancha Fund SCSp (the “Fund”), a Luxembourg based investment fund advised by La Mancha Capital Advisory LLP that is focused on investments in the precious metals and energy transition space. La Mancha’s head office is located at 31-33 Avenue Pasteur L-2311 Luxembourg. La Mancha will file an early warning report in accordance with applicable Canadian securities laws, which will be available under GMIN’s profile on the SEDAR website at www.sedar.com, and may also be obtained by contacting Karim-Michel Nasr as provided for below.
About La Mancha Capital Advisory LLP
La Mancha Capital Advisory LLP advises the Fund on strategic investments made in publicly listed and private exploration, royalty, and mining companies with a global outlook. La Mancha Capital Advisory LLP is a long-term minded investment advisor, with a mandate to support mining companies to achieve sustained growth by providing long-term equity capital as well as operational and board level expertise, to further portfolio company performance and expansion.
La Mancha Capital Advisory LLP is an Appointed Representative of G10 Capital Limited, which is authorised and regulated by the Financial Conduct Authority (FRN 648953).
Additional Information For further information on La Mancha Capital Advisory LLP, please visit the website at www.lamanchacapitaladvisory.com or contact:
Karim-Michel Nasr Managing Partner and Co-CIO +44.203.960.2020 contact@lamancha.com
About La Mancha’s Subscription
On July 18, 2022, La Mancha entered a subscription agreement (the “Subscription Agreement”) with GMIN pursuant to which La Mancha agreed to subscribe for an aggregate of 111,879,265 common shares in the capital of GMIN (“Common Shares”) by way of a private placement at a price of C$0.80 per Common Share for aggregate cash consideration of C$89,503,412 (the “Subscription”).
Subject to satisfaction or waiver of all closing conditions, the Subscription will close in two tranches: (i) on or before July 29, 2022, La Mancha will subscribe for 82,875,000 Common Shares at a purchase price of C$0.80 per Common Share for aggregate cash consideration of C$66,300,000 (the “Initial Subscription”); and (ii) by no later than November 30, 2022, La Mancha will subscribe for 29,004,265 Common Shares at a purchase price of C$0.80 per Common Share for aggregate cash consideration of C$23,203,412 (the “Subsequent Subscription”).
La Mancha does not otherwise currently own or have control or direction over any Common Shares. Following completion of the Initial Subscription, La Mancha will beneficially own and have control and direction over an aggregate of 82,875,000 Common Shares, representing approximately 19.8% of the then issued and outstanding Common Shares of GMIN. Following completion of the Subsequent Subscription, La Mancha will beneficially own and have control and direction over an aggregate of 111,879,265 Common Shares, representing approximately 25% of the then issued and outstanding Common Shares.
At the closing of the Initial Subscription, La Mancha, and GMIN will enter an investor rights agreement, upon which La Mancha will be granted certain director nomination, anti-dilution, and registration rights. The Common Shares to be acquired by La Mancha on completion of the Subscription will be acquired for investment purposes. In the future, La Mancha may, from time to time, increase or decrease its investment in GMIN through market transactions, private arrangements, treasury issuances or otherwise.
About Eldorado Gold
Eldorado is a gold and base metals producer with mining, development and exploration operations in Turkey, Canada, Greece and Romania. The Company has a highly skilled and dedicated workforce, safe and responsible operations, a portfolio of high-quality assets, and long-term partnerships with local communities. Eldorado’s common shares trade on the Toronto Stock Exchange (TSX: ELD) and the New York Stock Exchange (NYSE: EGO).
Eldorado Gold currently owns 46,926,372 GMIN common shares representing approximately 18.2% of the outstanding GMIN common shares. Following and subject to completion of the purchase of 32,500,000 GMIN common shares by Eldorado Gold described above, Eldorado Gold would own 79,426,372 GMIN common shares representing 19.0% of the outstanding GMIN common shares upon closing of the first tranche, and 17.7% upon closing of the second tranche.
Eldorado Gold advises that the securities will be acquired for investments purposes. Eldorado Gold may, depending on the market and other conditions, increase or decrease its beneficial ownership of GMIN’s securities, whether in the open market, by privately negotiated agreements or otherwise, subject to a number of factors, including general market conditions and other available investment and business opportunities.
This disclosure is provided pursuant to Multilateral Instrument 62-104, which also requires an early warning report to be filed containing additional information with respect to the foregoing matters. A copy of the early warning report will be available on SEDAR under GMIN’s issuer profile at www.sedar.com and may be obtained upon request from Eldorado Gold by contacting Eldorado Gold at the contact information below.
Contact Information: Eldorado Gold Corporation 1188 – 550 Burrard Street Bentall 5 Vancouver, British Columbia V6C 2B5 Tel: 604.601.6656
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
Cautionary Statement on Forward-Looking Information
All statements, other than statements of historical fact, contained in this press release constitute “forward-looking information” and “forward-looking statements” within the meaning of certain securities laws and are based on expectations and projections as of the date of this press release. Forward-looking statements contained in this press release include, without limitation:
A. Those related to the Project financing, such as: (i) the closing of the financing package in Q3-22; (ii) the fulfilment of all conditions to effect drawdown and receive the $250 million deposit under the Franco-Nevada gold stream; (iii) the approval of the disinterested GMIN shareholders for the second tranche of the La Mancha equity placement; (iv) the private placement acceptance of the TSXV; (v) the volume of gold deliveries under the Franco-Nevada gold stream; (vi) the completion of ESG initiatives as per the Franco-Nevada agreements; and (vii) the closing of the Cat Financial lease financing;
B. Those related to the Project itself, such as: (i) commencement of full construction in Q3-22, subject to approval of the Board of Directors; (ii) achievement of production in the second half of 2024; (iii) on time deliveries of equipment and prioritizing of local procurement; (iv) near completion of certain early works activities; (v) job creation during the construction period as well as the operation stage, notably through employment from local communities; (vi) development of local workforce skills through training programs; (vii) responsiveness to local community requests relating to education, health and cultural initiatives; (viii) creation of long-lasting infrastructure; and (ix) completion of drilling program in Q3-22, and of detailed engineering through H1-23;
C. And, more generally, the President & Chief Executive Officer’s comments hereinabove and those of the Franco-Nevada Chief Executive Officer and La Mancha Capital Advisory LLP’s Managing Partner, as well as the contents of the above sections entitled “Timetable and Next Steps” and “About G Mining Ventures Corp.”.
Forward-looking statements are based on expectations, estimates and projections as of the time of this press release. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Corporation as of the time of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. These estimates and assumptions may prove to be incorrect. Such assumptions include, without limitation, a USD:CAD exchange rate of 1.30 and also those underlying the items listed on the above sections entitled “Timetable and Next Steps” and “About G Mining Ventures Corp.”.
Many of these uncertainties and contingencies can directly or indirectly affect, and could cause, actual results to differ materially from those expressed or implied in any forward-looking statements. There can be no assurance that, notably but without limitation, the Corporation will (i) close all components of its project financing as outlined in this press release, (ii) make a positive construction decision regarding the Project in 2022 or ever, (iii) bring the Project into commercial production or (iv) become an intermediate gold producer, as future events could differ materially from what is currently anticipated by the Corporation.
By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that estimates, forecasts, projections and other forward-looking statements will not be achieved or that assumptions do not reflect future experience. Forward-looking statements are provided for the purpose of providing information about management’s expectations and plans relating to the future. Readers are cautioned not to place undue reliance on these forward-looking statements as a number of important risk factors and future events could cause the actual outcomes to differ materially from the beliefs, plans, objectives, expectations, anticipations, estimates, assumptions and intentions expressed in such forward-looking statements. All of the forward-looking statements made in this press release are qualified by these cautionary statements and those made in the Corporation’s other filings with the securities regulators of Canada including, but not limited to, the cautionary statements made in the relevant sections of the Corporation’s (i) Annual Information Form dated June 3, 2022, for the financial year ended December 31, 2021, and (ii) Management Discussion & Analysis. The Corporation cautions that the foregoing list of factors that may affect future results is not exhaustive, and new, unforeseeable risks may arise from time to time. The Corporation disclaims any intention or obligation to update or revise any forward-looking statements or to explain any material difference between subsequent actual events and such forward-looking statements, except to the extent required by applicable law.
Leon Fuat Berhad, a manufacturer and trader of steel products, specialising in rolled long and flat steel products today released the Group’s financial results for the first quarter ended 31 March 2022 (Q1FY2022) registering a 29.1% increase in revenue to RM273.02 million compared with RM211.48 million recorded in the corresponding quarter of the preceding financial year (Q1FY2021).
Calvin Ooi Shang How, Executive Director of Leon Fuat
For the quarter under review, profit before tax (PBT) stood at RM31.81 million, a 25.2% decrease from the PBT of RM42.53 million achieved in Q1FY2021 while profit after tax (“PAT”) stood at RM23.89 million, a 33.8% decrease from the PAT of RM36.11 million recorded in the same quarter of the preceding financial year.
The Group’s trading of steel products segment registered a 21.1% increase in revenue to RM90.00 million in Q1FY2022 compared with RM74.29 million recorded in the corresponding quarter of the preceding financial year while the processing of steel products segment registered a 33.4% rise in revenue to RM182.93 million compared with RM137.11 million achieved in Q1FY2021. The trading segment’s contribution to revenue stood at 33.0% in Q1FY2022 compared with 35.1% in the corresponding quarter of the preceding financial year while the processing segment’s contribution stood at 67.0% compared with 64.8% in Q1FY2021.
Calvin Ooi Shang How, Executive Director of Leon Fuat said, “We recorded higher revenue overall due to higher average selling prices for both trading and processing but this was partially negated by the 8.8 percentage points decrease in overall gross profit margin to 16.4% in the quarter under review compared with 25.2% gross profit margin in the corresponding quarter of the preceding financial year.”
“We continue to seek avenues to diversify as we have done through investing in welded steel pipe production in 2018. Phase 1 of the facilities with two production lines is operational while a further two production lines are being installed and expected to be operational in Q2FY2022. We have also begun Phase 2 of the facilities that we expect to be fully commissioned in the second-half of 2023 which will ultimately increase our production capacity.”
“Our outlook for 2022 remains unchanged as global growth is expected to slow significantly this year largely due to the conflict in Ukraine that has rippled across commodity markets, trade and to some extent financial interlinkages. Domestic economic growth has also been trimmed to between 5.3% and 6.3% in 2022 from the earlier forecast of between 5.5% and 6.5%.”
“Given that downside risks have risen significantly, we have increased monitoring of steel price movement and related foreign currencies and will take proactive measures including negotiating forward contracts, where necessary, as well as prudent inventory management, to reduce any negative impact which may arise. We will continue to enhance the operating capabilities and efficiencies in meeting customers’ requirements and to ensure timely satisfaction of customer orders while keeping our operating costs at a manageable level.”
Kobe Steel (KOBELCO) announces today that it will launch Kobenable Steel and become Japan’s first* provider of low CO2 blast furnace steel products with significantly reduced CO2 emissions during the blast furnace ironmaking process. The Company plans to start selling the new products this fiscal year.
Kobenable Steel is based on the KOBELCO Group’s CO2 Reduction Solution for Blast Furnace Ironmaking(1) announced on February 16, 2021. It utilizes a technology that can significantly reduce CO2 emissions from the blast furnace, which was demonstrated at the Company’s Kakogawa Works by charging the blast furnace with a large amount of HBI(2), produced by the MIDREX(R) Process(3) in the engineering business.
Kobe Steel plans to launch Kobenable Steel in two product categories: – Kobenable Premier – 100% reduction rate of CO2 emissions per ton(4) – Kobenable Half – 50% reduction rate of CO2 emissions per ton(4)
Kobenable Steel is available for all types of the Company’s steel products (steel sheet, steel plate, wire rod & bar products) manufactured at Kakogawa Works and the Kobe Wire Rod & Bar Plant.
Kobenable Steel maintains the same level of high quality as conventional products. Customers can continue to use blast furnace steel products that require high quality, such as special steel wire rods and ultra-high-tensile strength steel, which are the Company’s strengths.
For commercialization, reduction rates of CO2 emissions are calculated using the mass balance methodology(5) in which CO2 reduction effects are allocated to specific steel products, in accordance with ISO 20915. The calculation method and results are certified by the DNV Business Assurance services UK Ltd., a third-party certification body in the UK. At the time of the sale of the products, Kobe Steel will provide the customer with a third-party certificate issued by DNV and a low-CO2 steel product certificate issued by the Company(6).
Kobe Steel will contribute to the realization of a green society by providing Kobenable Steel low CO2 blast furnace steel as a pioneer in the steel industry.
The Kobe Steel Group (KOBELCO Group) will continue to provide solutions to the needs of society, by making the best use of the talents of its employees and technologies, in order to realize a world in which people, now and in the future, can fulfill their hopes and dreams while enjoying safe, secure and prosperous lives.
*According to the Company’s survey as of May 17, 2022.
(1) Press release announced on February 16, 2021 Kobelco Group’s CO2 Reduction Solution for Blast Furnace Ironmaking https://www.kobelco.co.jp/english/releases/1207624_15581.html (2) Hot briquetted iron (HBI) is direct reduced iron (DRI) in a briquetted form. Since hot DRI is not suitable for long-distance transportation, it is pressed into a compact solid (briquette) upon being discharged from the reduction furnace (3) The MIDREX(R) Process is the leading direct reduced iron (DRI) making process, which produces approximately 80% of the world’s direct reduced iron with natural gas (approximately 60% of the world’s direct reduced iron at large). The MIDREX Process uses natural gas as the reductant and pellets made of iron ore as the source of iron to make DRI through the reduction process in the shaft furnace. In comparison to the blast furnace method, the MIDREX Process can reduce CO2 emissions by 20 to 40%. (4) Compared with the fiscal 2018 levels (5) The mass balance methodology is a method to allocate specific characteristics to a certain portion of products according to the input amount of raw materials with the characteristics when there is a mix of raw materials with and with no such characteristics (e.g., low CO2) in the manufacturing process. This approach has been used for products such as recycled plastics, bioplastics, electricity generated from renewable energy sources, and certified food products like cocoa and palm oil, for which separation of product properties are difficult due to the characteristics of the manufacturing process or the supply chain. In the ironmaking process, it becomes possible to reduce the amount of coke used and thereby reduce CO2 emissions by replacing a portion of iron ore with HBI, a raw material for steel that has already been reduced. Kobe steel employs the mass balance methodology to allocate the reduction effects to specific products and add environmental value to them. (6) The upper limit on sales volume is set by the certification body. Please ask us about the details of sales quantity.
Aluminum Corporation of China Limited (the Company; NYSE: ACH; HKG: 2600; SHA: 601600) announces that the Company’s annual report for the 2021 fiscal year filed with the SEC on April 22, 2022 can be accessed via the following link:
A hard copy of the Company’s complete annual report will be provided to any shareholder without charge upon written request to Aluminum Corporation of China Limited at No. 62 North Xizhimen Street, Haidian District, Beijing, PRC 100082.
Background information:
Aluminum Corporation of China Limited is a leading enterprise in non-ferrous metal industry in China. The scope of business of the Company primarily includes bauxite and coal mining, alumina refining, primary aluminum smelting, trading of alumina, primary aluminum, other non-ferrous metal products, coal products and raw and ancillary materials in bulk and power generation. The Company was established as a joint-stock limited company incorporated in the People’s Republic of China. The Company’s American Depository Shares and H Shares are listed on the New York Stock Exchange, Inc. and the Stock Exchange of Hong Kong Limited, respectively. The Company’s A Shares are listed on the Shanghai Stock Exchange.
St-Georges Eco-Mining Corp.(CSE:SX)(OTCQB:SXOOF)(FSE:85G1) is pleased to release the additional partial results of its 2021 drilling campaign on its 100% own Manicouagan Project.
Table 1 – Assay results for a 2-meter section of 2021-Hole 18
Table 2 – Representative samples collected from the 1,070kg bulk sample
Map 1 – Location of hole 21-18 in relation to 2021 bulk sampling and two historical holes nearby
Table 3 – Results for the eight samples submitted for secondary assay
The drill cores sampled return results up to 0.84 g/t of rhodium, 1.3 g/t ruthenium, 0.16 g/t osmium and 0.3 g/t iridium over 0.5 meters.
Eight separate samples were selected for re-assay for all Platinum Group Elements (PGE) from hole 21-18. The additional average results over the 2-meter zone previously released on March 25, 2022 (from 47.5 meters to 49.5 meters) include 0.55 g/t rhodium, 1.087 g/t ruthenium, 0.214 g/t iridium and 0.11 g/t osmium. The Company believes these are significant credits to the reported 2-meter section intersected in hole 2021-18. These results coincide with the random samples collected from the bulk sampling and attests to the vertical extent of nickel-copper-cobalt and PGE’s present in this system. Therefore, the Company intends to accelerate its metallurgical sampling program to determine the viability of economically separating and recovering the various suites of minerals identified in the Manicouagan massive sulfide discovery.
The samples were shipped from Val D’or ALS Laboratories to Bureau Veritas for a complete suite of assays. The eight samples were selected from the better values reported previously from ALS and reported in the Company’s last press release on March 24, 2022 (Discovery of High-Grade Nickel & Palladium Corridor Confirmed). Therefore, the samples are not sequential throughout the previous reference to 6.5 meters but are sequential through the 2-meter section previously announced. The Best 2-meter results for platinum and palladium are reported in a side-by-side comparison in Table 1, along with additional results for iridium, osmium, rhodium and ruthenium.
Comparatively, assay results for platinum and palladium were similar in nature. Several of the higher-grade samples for platinum and palladium showed decreases from the previous 2-meter results reported in the last press release. This reduced the platinum values by 8% and the palladium values by 18%, as shown in Table 1 above. These variations may be attributable to either or both of the different processes used to establish the assay values and/or the inconsistencies of mineral content in the sample. In fact, the highest iron content (massive sulfides +25% to >50%) is present within this 2-meter zone and may have contributed to any processing issues present.
Table 2 is a reminder of the representative samples collected from the 1,070 kg bulk sample. These values confirm the association and relative consistencies of PGE minerals at surface and at depth.
Hole 21-18 was drilled to the southeast of the historical Bob Showing, where a 1,070 kg bulk sample was collected this year (See St-Georges Press Release from February 10, 2022: https://bit.ly/3KdbXNI
The map below (Map 1.) shows the location of the hole 21-18 in relation to the bulk sample and two historical holes, 07-17 and 08-02. Two minor faults are reported in the vicinity of these holes.
The Company has a large quantity of samples in the process of being assayed by its independent labs. St-Georges’ contracted geologists are still hard at work processing the last batch of core that came out of the Manicouagan Project’s camp earlier this month. Assays results will be disclosed as they become available.
Because of the high-grade assays returned and the identification of a mineralized trend or corridor, the Company expanded its claim position in the area to maintain its competitive advantage. This year, the Company expects to conduct a cursory exploration program on the new land acquisition with some geophysics, geologic mapping, and geochemical sampling of surface outcrops.
“We believe we are refining our knowledge of structure and mineralization at our Manicouagan project. Previously overlooked and, in some cases, unknown mineralization and trace element geochemistry provide additional targets that both extend the known areas and provide additional targets that remain untested. This particularly involves the distribution of PGEs. Hole 21-18 provided a 2-meter-thick zone that, when you add all of the metals together, gives us 7% nickel equivalent. Historic holes intersected narrow zones (0.22m) that had a combined value of over 12.5% nickel equivalent at today’s quoted prices.
“Palladium, rhodium, ruthenium, and platinum are significantly enriched in areas where higher-grade nickel-cobalt-copper sulfides exist. Historically, these minerals were overlooked or, at best, cursorily sampled for all PGEs. Even so, the results from historic drilling include values to 1.73 g/t rhodium and 2.7 g/t ruthenium. More importantly, for our future exploration programs, we find that the various PGEs do not go hand-in-hand but can exist separately and more widely spread from the highest concentrations of base metals. This means higher grades of rhodium and other PGEs may exist within the 16 historic holes that encountered 0.7-to-7-meter widths of high-grade nickel-copper-cobalt within the Bob and Bob East zones. This is also true for elsewhere on this large property position.
“We hope to benefit from this knowledge, especially in the case of the platinum-palladium-rhodium (PGE) mineralization which appears to have been under-explored in this region. St-Georges hopes to take this knowledge to the next level by also utilizing the new pathfinder elements developed during the 2021 drill program,” commented Herb Duerr, CEO & President of St Georges Eco-Mining.
About Rhodium Metal Rhodium is one of the rarest and most valuable precious metals in the world, currently valued at US$19,000 per ounce or $610 per gram. It is only found in platinum or nickel ores that tend to run with the other members of the platinum group metals. Currently, South Africa produces roughly 80% of the global supply, while Russia and North America account for the bulk of the remaining 20%.
The global market for rhodium is around 1.2 million ounces and with supply running a multi-year deficit, the value of the metal has grown steadily since 2017. The reason for this being that rhodium is only produced as a co- or by-product with average grades of up to .5 g/t. In fact, many producers of rhodium today are operating at much lower grades, making St-Georges’ discovery very significant in terms of grades being reported.
ON BEHALF OF THE BOARD OF DIRECTORS “Herb Duerr” HERB DUERR President & CEO
About St-Georges Eco-Mining Corp. St-Georges develops new technologies to solve some of the most common environmental problems in the mining sector, including maximizing metal recovery and full circle EV battery recycling. The Company explores for nickel & PGEs on the Julie Nickel Project and the Manicougan Palladium Project on Quebec’s North Shore and has multiple exploration projects in Iceland, including the Thor Gold Project. Headquartered in Montreal, St-Georges’ stock is listed on the CSE under the symbol SX and trades on the Frankfurt Stock Exchange under the symbol 85G1 and on the OTCQB Venture Market for early stage and developing U.S. and international companies. Companies are current in their reporting and undergo an annual verification and management certification process. Investors can find Real-Time quotes and market information for the company on www.otcmarkets.com.
The Canadian Securities Exchange(CSE) has not reviewed and does not accept responsibility for the adequacy or the accuracy of the contents of this release.
