LeadFX's Rosslyn signs MOU for Paroo mine farm-in, JV
2016-12-19 09:38 ET - News Release
Mr. Rob Scargill reports
LEADFX ANNOUNCES MEMORANDUM OF UNDERSTANDING COVERING COBALT EXPLORATION
LeadFX Inc. today commented on a proposed farm-in and joint venture arrangement recently announced by Riva Resources Ltd. (formerly, Dragon Energy Pty. Ltd.) relating to the exploration of cobalt, gold and copper on the company's mining tenements that cover its Paroo Station mine in Western Australia.
The company's wholly owned subsidiary, Rosslyn Hill Mining Pty. Ltd., has entered into a non-binding memorandum of understanding (MOU) with Riva relating to a farm-in and joint venture that would grant Riva the right to explore for cobalt, copper and gold on the company's mining leases and exploration licences at the Paroo Station mine. Riva is a mining exploration company that holds pending exploration licences on mining tenements adjacent to the Paroo Station mine. Under the terms of the MOU, Riva may earn up to a 75-per-cent interest in any prospective cobalt, gold and/or copper mineral rights discovered on RHM's mining tenements by incurring exploration expenditures totalling $6-million (Australian) over a four-year period. Riva would also grant the company reciprocal rights to explore for lead, zinc and silver minerals on Riva's neighbouring mining tenements on similar terms. Under the proposed terms, if Riva fails to meet required expenditures in the time required, it would forfeit all interest earned in the mineral rights. The parties anticipate a minimum exploration spend of $500,000 (Australian) by Riva on RHM's tenements during the first year of the farm-in period. Upon reaching a 75-per-cent interest in the mineral rights, Riva and RHM would enter into a formal joint venture agreement with respect to the mineral rights. LeadFX would maintain the exclusive right to mine lead at the Paroo Station mine.
LeadFX's chief executive officer, Rob Scargill, stated: "This MOU opens up a new cobalt exploration opportunity in the short term, whilst we focus on our plans to restart the Paroo Station mine, and, longer term, gives LeadFX a larger potential target area for future lead-zinc discoveries adjacent to our existing operations."
The commencement of the farm-in arrangement with Riva remains subject to the negotiation of definitive documentation by the parties, and the approval of the terms by LeadFX's board of directors and secured lender.
About Riva Resources
Riva Resources is an Australian Stock Exchange-listed exploration company controlling a portfolio of tenements in Western Australia. Riva presently holds three mineral projects that comprise nine tenements, and have exploration targets encompassing cobalt, gold, iron ore and base metals. In September, 2016, Riva announced that it had entered into an agreement to acquire the Tabac cobalt-gold project. The Tabac project consists of two exploration licence applications covering a combined area of 111.5 square kilometres. The Tabac project is located on the Goldfields Highway, 30 kilometres west of Wiluna, in the Northern Goldfields region of Western Australia, and sits adjacent to the Paroo Station mine.
LeadFX is a Canadian-based mining company focused on the development of lead-silver projects located in stable jurisdictions. The company's current portfolio includes a restart-ready lead operation in Western Australia and a development project in Utah, United States.SVI
We seek Safe Harbor.
© 2016 Canjex Publishing Ltd. All rights reserved. Paroo Station Mine one step closer to restart TORONTO, Nov. 21, 2016 All dollar amounts are in U.S. dollars unless otherwise indicated. TORONTO, Nov. 21, 2016 /CNW/ - LeadFX Inc. (the "Company" or "LeadFX") (TSX: LFX) announced today that it has received favourable changes to the Paroo Station Mine's (the "Mine") operating conditions. It has also received a $1 million unsecured, interest-free loan from Sentient Global Resource Fund IV, LP ("Sentient") to help meet its working capital needs. Paroo Station Mine Update After an extensive consultation process, LeadFX is pleased to announce that it has received a seven-year extension for access to the Port of Fremantle to export lead concentrate using the Company's best-practice concentrate transportation process. LeadFX exports its concentrate in sealed double-lined bags in locked shipping containers. Securing port access is a critical step in the preparations for a potential restart of the Paroo Station Mine in Western Australia. Pursuant to an amendment made to Ministerial Statement 905, the Mine's key operating conditions (the "Operating Conditions"), the Company is now permitted to ship through the Port of Fremantle until July 27, 2024. In addition, the Operating Conditions were also amended to reduce the quantum of the financial assurance bond that the Company must have in place during transport operations, from A$5 million to A$2 million, to be in line with the with the worst-case clean-up scenario developed by independent transportation experts. The Company considered the receipt of these amendments to its Operating Conditions as important preconditions to any decision to restart the Mine. With these amendments approved, the Company can now move forward with its Mine restart financing discussions. In 2014, its last full year of operations, the Mine produced approximately 81,000 tonnes of contained lead in concentrate and employed more than 200 employees and contractors. Unsecured Promissory Note Sentient has advanced LeadFX $1 million pursuant to an unsecured, interest-free, promissory note (the "Note"), repayable on June 30, 2017 and on the same terms as the prior promissory notes issued by the Company to Sentient. The interest-free advance by Sentient will enable the Mine to remain in a restart-ready state prior to a decision being made on a restart of the Mine in the coming months. Rob Scargill, President and CEO said, "Recent LME lead prices are more than 20% higher than such prices when we placed the Paroo Station mine on care and maintenance in January 2015. The extension of the port access removes a significant hurdle to a restart, and with the ongoing support of Sentient we are now focused on securing appropriate restart financing prior to a restart decision."
LeadFX is a Canadian-based mining company focused on the development of lead-silver projects located in stable jurisdictions. Our current portfolio includes a restart-ready lead operation in Western Australia and a development project in Utah, USA. The Company is developing opportunities at its new properties in North America to underpin future cash flow and growth. LeadFX trades under the symbol "LFX" on the Toronto Stock Exchange
Paroo Station Mine
Paroo Station Mine ("Paroo Station" or the "Mine") is located in Western Australia and is the world's largest lead carbonate mine. On January 16, 2015 the mine was placed on care and maintenance amid difficult market conditions.
is a Canadian-based mining company focused on the development of lead-silver projects located in stable jurisdictions.
Paroo Station is 100% owned by Rosslyn Hill, a wholly-owned indirect subsidiary of LEADFX.
On December 17, 2012, Rosslyn Hill Mining entered into a management services agreement ("EMG Management Services Agreement") with Enirgi Metal Group Pty Ltd. ("EMG"), a wholly-owned subsidiary of Enirgi Group Corporation ("Enirgi Group").
Under the EMG Management Services Agreement, EMG will take the leading role in managing the restart of operations at the Mine, including the design of the organizational structure, as well as, responsibility for the day to day management of the operation of Mine following restart. Under the EMG Management Services Agreement, LEADFX expects that EMG will deliver increased technical and operating experience, executive management and economies of scale from being part of a larger group.