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How is that even legal for Dundee to represent one company and be the largest shareholder of the other?
By the way,for the US investors(dollar)we get somewhere in the.06 range, per share.
Could this merger offer be the catalyst for a bidding war???
What am I missing here?How can Dundee represent Almonty?Dundee being the largest WOF shareholder,can be a financial advisor for Almonty???????????
I wonder about that,since the IMC agreement hasn't been considered.What is IMC's opinion about this?Now about Dundee......
ADVISORS AND LEGAL COUNSEL
Dundee Capital Markets is acting as financial advisor to Almonty and Wildeboer Dellelce LLP is acting as legal counsel to Almonty and its Board of Directors.
Woulfe has retained, for its due diligence of the Almonty assets and operations, the services of Micon International UK. A fairness opinion will be provided to Woulfe's Special Committee and Board by a yet to be chosen expert. Armstrong Simpson is acting as legal counsel to Woulfe and its Board of Directors.
Accepting an C.08 offer for WOF,even with a"potential" 40% future share price,is not smart,in fact,IMO,it's dumb.This could be future gain is only hypothetical,and Almonty controls the future,not WOF.The company's value is much higher than the offer,like about 7 times higher.This is nothing short of a scam!
That scenario is still open to us, right?
Wonder if Dundee is connected to Almonty in any way.
Yes there are many disgruntled share holders this morning. The only benefit to the wfeMF shareholders is that the combined company will become a more attractive acquisition target in the future. WFEMF shareholders will see 40%ish of the possible blue sky potential. That prospect POSSIBLY may support a slightly higher PPS. Right now it sucks for us.
This offer is only good for Almonty,and it is nothing more than a silly low ball offer and doesn't benefit any WOF/WFEMF shareholders.WOF should tell Almonty no,and move forward with IMC.
It does not...its a bad deal for the shareholders of WFEMF
Advisor or not,how does C.08 a share become a good deal for ANY WOF shareholder?
Dundee is financial advisor for Almonty in the merger... Dundee knows best. Public domain getting fleeced in this deal for sure.
Dundee is financial advisor for Almonty in the merger... Dundee knows best. Public domain getting in this deal for sure.
the C$0.08 fixed price represents a 22.7% premium to Woulfe shareholders.
Premium????This is such an undervalued offer,shareholders would idiots to accept it.What about IMC??The agreement?No mention of them at all!
I noticed the part about Almonty having the rights to match any higher offers,is there going to be a bidding war?????
Almonty Industries and Woulfe Mining Announce Proposed Merger to Create the Leading Tungsten Producer Outside of China
TORONTO and VANCOUVER, Jan. 27, 2015 /CNW/ - Almonty Industries Inc. ("Almonty") (TSXV:AII) and Woulfe Mining Corp. ("Woulfe") (CSE:WOF) are pleased to announce that they have entered into a non-binding letter of intent (the "LOI") to combine the businesses of the two companies (the "Merger") and create the leading tungsten company outside of China. The combined business ("MergeCo") will have two producing tungsten assets located in Spain and Australia, pre-construction assets in South Korea and Spain, and serve as an attractive platform for further accretive growth and consolidation in the global tungsten sector. Completion of the Merger is subject to completion of due diligence process by both companies, expected to be completed within the next 30 days, and the satisfaction of certain conditions discussed below.
Under the terms of the Merger, Almonty would acquire all of the outstanding common shares of Woulfe at a fixed price of C$0.08 per share to be satisfied by each Woulfe share being exchanged for a fraction of an Almonty common share with such fractional Almonty common share having a fair market value on the effective date of the Proposed Transaction of C$0.08 (the "Almonty Consideration"), which fair market value will be determined based on the Almonty volume weighted average trading price for the five trading days ending on the third trading day prior to the effective date of the Proposed Transaction (the "Almonty VWAP"). Notwithstanding the foregoing, in no event shall the Almonty Consideration be greater than 0.1231 of one Almonty common share (C$0.65 Almonty VWAP) or less than 0.0942 of one Almonty common share (C$0.85 Almonty VWAP).
The C$0.08 fixed price represents a 22.7% premium to Woulfe's 30-day volume weighted average price ("VWAP") for the period ending January 26, 2015. Upon completion of the Merger, Woulfe shareholders will own approximately 41% to 48% of MergeCo, depending on the Almonty VWAP.
Woulfe's principal asset is the 100%-owned Sangdong Tungsten/Molybdenum Project ("Sangdong") located in South Korea, located 187km southeast of Seoul (subject to a third party which may purchase a 25%-ownership interest in Sangdong for US$35 million). The property is comprised of 12 Mining Rights with an aggregate area of 3,173 hectares. Woulfe recently completed a de-risking review of its final Feasibility Study report based on, the Tetratech 2012 feasibility report, on the Sangdong mine.
Almonty's principal assets are the Los Santos tungsten mine, producing 1,100 tonnes/year of WO3, and the Wolfram Camp tungsten and molybdenum mine in Queensland Australia, which produced 700 tonnes of WO3 in 2013. In addition, Almonty is working towards the commissioning of the Valtreixal tin/tungsten mine in north western Spain with anticipated production in 2017.
Lewis Black, President and CEO of Almonty, commented "This transaction represents the opportunity to combine one of the world's most promising undeveloped tungsten asset with our significant portfolio of producing assets, to create a truly global tungsten powerhouse. Almonty has already established itself as a leading producer of tungsten outside of China and premier consolidator of global tungsten assets. With the addition of Woulfe's flagship Sangdong mine, we are confident about the combined team's ability to unlock significant value from our collective assets for our combined shareholders."
Commenting on the transaction, Michel Gaucher, President and CEO of Woulfe, said "By combining Woulfe and Almonty, we are creating the premier tungsten producer outside of China. The complementary expertise of Almonty's and Woulfe's highly experienced technical teams combined with an enhanced access to capital through the merger, will potentially advance the Sangdong project to production on an accelerated timeline. We believe this new company will provide investors with an ideal way to gain broader exposure to the tungsten sector."
TRANSACTION RATIONALE
Creation of the "go-to" global tungsten producer outside of China
Almonty's Los Santos Tungsten Mine in Spain is a fully operational, profitable mine
Scale-up of tungsten production currently underway at recently acquired Wolfram Camp mine in Australia
Almonty announced a special cash dividend of $0.0272 per share in August 2014 (intends to declare on an annual basis)
Leverage off Almonty's and Woulfe's disciplined and focused management and technical teams with a proven ability and track record of acquiring, operating and enhancing tungsten assets, and of designing and planning complex mining solutions and processing facilities
Almonty acquired Portugal-based Panasqueira in 2005 and successfully refurbished operations and increased the mine life; sold the mine in 2008 at 20x earnings for a 30x return
Ongoing operational enhancement and turn around at Los Santos Mine over the past ~36 months including improving recoveries by 40%, decreasing costs by 25% and increasing contained tungsten by ~25%
The Woulfe team de-risked Sangdong's Tetratech 2012 Feasibility Study in record time and at a highly reduced costs from those initially budgeted and announced in 2013
Geographical diversification of resources with robust pipeline of near-term production and longer-term development assets
Acquired Wolfram Camp (Australia) in September 2014
Updated feasibility study at Sangdong (S. Korea) in Q1 2015
Updated resource at Valtreixal Project (Spain) in October 2014
Potential for significant cost savings and synergies with additional potential for other operating efficiencies
Enhanced capital markets presence including increased analyst coverage, trading liquidity and broader institutional base
Greater critical mass capable of financing at a lower cost of capital
The combined entity will be an attractive platform for further accretive growth and consolidation in global tungsten sector
BENEFITS TO ALMONTY SHAREHOLDERS
Increased resource diversification and access to a large tungsten deposit in Sangdong
Management and technical team proven to be capable of achieving asset's maximum potential, from construction, to start up and operations
Accretive on a EV / Resource basis
In-line with management's "roll-up" strategy to reach critical mass and dictate WO3 pricing and/or become a highly attractive acquisition target
BENEFITS TO WOULFE SHAREHOLDERS
Resource diversification geographically with access to two producing assets and one late-stage development asset
Significant premium on a 30-day VWAP basis
Management team additions with extensive tungsten operational and turnaround expertise
Immediate capital injection and increased access to project financing for accelerated build out of Sangdong
MANAGEMENT AND BOARD
MergeCo's management and board will reflect the collective strengths of both companies, having years of experience of direct tungsten experience across the globe. It is anticipated that the executive management of MergeCo will be led by a team managing Almonty's assets with the addition of key Woulfe executive team members, who will continue to manage and operate the South Korean operations. Discussions regarding MergeCo's Board of Directors are currently underway.
SUMMARY OF THE TRANSACTION
It is anticipated that the Merger will be completed by way of a plan of arrangement, resulting in Woulfe becoming a wholly-owned subsidiary of Almonty at closing.
Based on the current common shares outstanding of both Almonty and Woulfe, Woulfe shareholders will own approximately 41% to 48% of the shares of MergeCo upon completion of the Merger and Almonty will own approximately 59% to 52% of the common shares of MergeCo. Based on 30-day VWAP closing on January 26, 2015, the C$0.08 fixed price represents a 22.7% premium to Woulfe shareholders.
Following completion of the Merger, outstanding options, warrants and debt convertible to acquire common shares of Woulfe will be exercisable to acquire common shares of Almonty on the basis of the above common share exchange ratio.
The transaction is subject to completion of due diligence, the execution of a definitive agreement reflecting the terms set out in the LOI, and the approval of the Woulfe shareholders requiring a favourable vote of 66 2/3% of the votes cast at a meeting to be held as soon as practicable following execution of the definitive agreement, in addition to other customary closing conditions, including receipt of court and all regulatory and stock exchange approvals. Woulfe has also agreed to non-solicitation restrictions, including Almonty's right to match any superior proposals, and a break fee equal to 3.75% of equity value payable to Almonty under certain circumstances.
Certain members of management, directors and key shareholders of Woulfe, including Dundee Corp., have expressed their willingness to enter into support agreements to, among other things, vote their common shares in favour of the matters relating to the Merger.
Subject to the execution of the definitive agreement and satisfaction of all closing conditions, the Merger is expected to be completed in April 2015.
BRIDGE LOAN
Almonty has today provided Woulfe with a C$150,000 unsecured bridge loan, and up to a further C$150,000 unsecured bridge loan will be made available upon the execution of the definitive agreement (the "Bridge Loan") which will be used for basic working capital needs. The Bridge Loan will mature on the earlier of April 30, 2015 or closing of the Merger, subject to extension with the agreement of Almonty, will bear an interest rate of 12% per annum payable at maturity and will rank pari passu with Dundee Corporation's existing unsecured convertible debt of Woulfe.
ADVISORS AND LEGAL COUNSEL
Dundee Capital Markets is acting as financial advisor to Almonty and Wildeboer Dellelce LLP is acting as legal counsel to Almonty and its Board of Directors.
Woulfe has retained, for its due diligence of the Almonty assets and operations, the services of Micon International UK. A fairness opinion will be provided to Woulfe's Special Committee and Board by a yet to be chosen expert. Armstrong Simpson is acting as legal counsel to Woulfe and its Board of Directors.
ADDITIONAL INFORMATION
Additional information about Almonty Industries Inc. and Woulfe Mining Corp. is available by visiting Almonty's website at www.almonty.com or Woulfe's website at www.woulfemining.com or under their profiles on SEDAR at www.sedar.com.
This announcement is for informational purposes only and does not constitute an offer to purchase, a solicitation of an offer to sell shares or a solicitation of a proxy.
Neither 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 release.
Forward-Looking Statements
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: This news release contains "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward-looking information" as such term is defined in applicable Canadian securities laws (together referred to herein as "forward-looking statements"). Except for statements of historical fact relating to Almonty or Woulfe, information contained herein constitutes forward-looking statements. Forward-looking statements are characterized by words such as "plan," "expect", "budget", "target", "project", "intend," "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements in this news release include, but are not limited to, statements relating to completion of the combination of Almonty and Woulfe and the expected timing of completion, statements regarding the cash balance of MergeCo at closing, statements regarding the expected benefits to Almonty shareholders and Woulfe shareholders of the proposed transaction. Forward-looking statements are based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made, and are inherently subject to a variety of risks and uncertainties and other known and unknown factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include (i) that Almonty and Woulfe will complete the proposed transaction described herein, (ii) political developments, whether generally or in respect of the mining industry specifically, in Spain, Australia and South Korea, not consistent with Almonty and Woulfe's current expectations, (iii) Almonty's and Woulfe's expectations in connection with the projects discussed herein being met, (iv) the impact of general business and economic conditions, global liquidity and credit availability on the timing of cash flows and the values of assets and liabilities based on projected future conditions, fluctuating metal prices and currency exchange rates, (v) the value that MergeCo will realize from its portfolio of advanced resource equity positions, (vi) changes in project parameters as plans continue to be refined,(vii) the continued employment of key Almonty and Woulfe employees, as well as those risk factors discussed or referred to in Almonty's and Woulfe's respective annual Management's Discussion and Analysis and Almonty's Annual Information Form for their respective most recently completed year ends filed with the applicable securities regulatory authorities and available at www.sedar.com. Although Almonty and Woulfe have attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended.
There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Neither Almonty nor Woulfe undertakes any obligation to update forward-looking statements if circumstances or management's estimates, assumptions or opinions should change, except as required by applicable law. The reader is cautioned not to place undue reliance on forward-looking statements. The forward-looking information contained herein is presented for the purpose of assisting investors in understanding Almonty's and Woulfe's expected financial and operational performance and results as at and for the periods ended on the dates presented in their respective plans and objectives and may not be appropriate for other purposes.
Information herein with respect to Almonty has been provided by management of Almonty, and information herein with respect to Woulfe has been provided by management of Woulfe, and neither Almonty nor Woulfe assumes any responsibility or liability with respect to the other party's information set out herein or any obligation to update such information, except as require by applicable securities laws.
SOURCE Almonty Industries Inc.
For further information: Almonty Industries Inc., Lewis Black, President & CEO, Tel: (647) 438-9766, www.almonty.com; Woulfe Mining Corp., Michel Gaucher, President & CEO, Tel: (604) 684-6264, www.woulfemining.com
NEWS...Almonte Industries and Wolfe Mining to Merge
what is the exchange rate between canada and the u.s. on the dollar?
Share price is a steal at these levels imo
Ok, I slapped all $0.071's and under this a.m. at OTC. : )
Wondering who sold those shares at that price after a good news and why.
Don't forget,this is "real" company with Warren Buffet owned company as a partner,and that says a whole lot.
Just wait,heavy volume on the CSE...355,000 shares traded,now at .09.
wfemf is going a lot higher , news hasnt got out yet,imo
Phase 1* Mining Plan -1 to Taebaek Levels
(Using 65% WO3 Concentrate Price of $US 15,000 per tonne)
Revenue WO3 Concentrate** - Average Annual $US 62.1 million
Earnings Before Sustaining Capital – Annual Average $US 31.8 million
Pre-tax IRR 26%
Project Total NPV @ 5% Discount Rate $US 156 million
EBITDA / Share Discounted at 5% $CDN 0.067 and you take a small multiple of say 15 to 1 and you get $1.00 a share. which in these pink stocks the multiple usually runs a lot high than 15 to 1
Yea but we've not hit even 4week high yet.
Disappointing but may be a good chance to add more.
Outside world probably does not know WOF much.
That is because on Friday,the bid and ask were lower,even though it previously traded at .07.This happens all the time,the OTC tracks the CSE,however,because of the difference in the exchange rate,the OTC bid and ask is always lower than the CSE.Currently on the CSE,the bid is .075,and the ask is .08.
Higher volume(relatively) and share price same as last Friday $0.07 on US OTC market.
I don't get it.
The investors like the news,trading at .085 on the CSE.
Good news!! Update to the feasibility study....NPV 7 times current marketcap
Looking good here. It's about time
Good question.I believe Monday will be a good indicator of investor sentiment.If WOF gets any recognition as a major player,the share price will sky rocket,which is not unusual for a company that is so undervalued as WOF is.That would explain why contractors working for WOF are willing to accept half of their payment in shares.
I know. We may hear the good news earlier than we expect looking the speed of last
several PR's the new management has spewed since last Oct.
Where are all longs? Is the party little early yet?
Maybe all their shares have been transferred to Dundee?
What would be price actions like from next Monday to the day IMC signs the deal and then after
...... if you have experiences in junior miming companies?
Thanks
I must say,this is looking good!!!!!!
Part of the agreement is for WOF to sell 90% of it's Tungsten to IMC,and it is still in force,which means WOF already has a buyer......Vancouver, BC, Canada -- February 28th, 2012 -- Woulfe Mining Corp. ("Woulfe" or the "Company") (TSX-V: WOF, OTCQX: WFEMF, Frankfurt: OZ4) is pleased to announce that Woulfe and its 100%-owned tungsten/molybdenum South Korean subsidiary, Sangdong Mining Corporation ("Sangdong"), have entered into agreements for a strategic arrangement with IMC International Metalworking Companies B.V. ("IMC") and certain of IMC's affiliates.
The closing of the transaction is subject to customary closing conditions, including the satisfactory conclusion of due diligence by IMC, the receipt of applicable regulatory approvals and other matters set forth in full in the relevant agreements. The basis of the strategic arrangement is as follows:
• IMC will immediately advance CDN$5 million to Sangdong, pursuant to a loan agreement, for purposes of project advancement pending the closing of the transaction;
• IMC has agreed to acquire a 25% interest in Sangdong for cash consideration totalling CDN$35 million;
• Woulfe and IMC have agreed to jointly establish a Korean company ("APT JV"), which will be owned 45% by Woulfe and 55% by IMC. The parties will invest up to CDN$15.75 million and CDN$19.25 million, respectively, into the APT JV to build a facility in Korea for the processing of tungsten concentrate to be purchased from Sangdong into tungsten APT. IMC has agreed to make available to Woulfe a loan for Woulfe's portion of the APT JV investment;
• The APT JV has agreed to acquire no less than 90%, and up to 100%, of Sangdong's tungsten concentrate production pursuant to an off-take agreement, which will be guaranteed by IMC;
• IMC has agreed to acquire no less than 90%, and up to 100%, of the APT JV's available APT production pursuant to a separate off-take agreement.
Very interesting.....
IMC acquired Korea Tungsten Co and founded TaeguTec ltd in 1998.
Berkshire Hathaway acquired IMC Groupe 80% in 2006, 20% in 2014.
IMC established their presence in 50 countries in the past 15 years:
Korea, US, Germany, Scandinavia,UK, India, China, Brazil, Italy, Japan,Austrailia, Rusia........ just all over the world
More interesting to me is:
TaeguTec has grown to become not only South Korea’s largest and most innovative industrial
cutting tool manufacturer, but also an important provider of tungsten powders, solid carbide rolls and
specialized industrial products to the world at large.
It is only logical for IMC to have interests in Woulfe and make a deal.
$$WFEMF$$
WOF's partner and investor.....
http://www.taegutec.com/Ustyles/DownloadFiles/Image_En.pdf
The PR stated a recommondation to that effect.I notice that articles pertaining to Tungsten,seem to exclude WOF as a major player,I think that is about to change,once Warren Buffet's name is mentioned again.
Just a reminder......
Overview
Woulfe Mining owns a 100% interest in the Sangdong Tungsten/Molybdenum Project located in South Korea. The Sangdong deposit hosts one of the largest tungsten resources in the world, and was the leading global tungsten producer for more than 40 years prior to closure in 1992. Low metal prices, not the exhaustion of resources, led to the mine's premature closure.
The Korean operating environment is highly competitive, with relatively low materials and wages costs, low taxes and no royalties, and the forecast capital cost is significantly lower than that for most comparable Western projects.
Project financing is underpinned by a series of definitive agreements with The International Metalworking Companies B.V., ("IMC"), a company that is 100% owned indirectly by Berkshire Hathaway. Under the agreements, IMC will contribute US$35 million cash for a 25% interest in the Sangdong mine and concentrator, and will construct and have a 55% interest in the APT plant. IMC will be entitled to the off-take at a discount to market price, and Woulfe will repay its share of the APT plant construction cost out of future production revenues.
Tungsten is a strategic metal and China dominates global production and consumption. China has recently extended its restrictions on the production and export of tungsten, along with the restrictions on rare earths and antimony, to conserve its resources and protect the environment. China had long been the largest exporter of tungsten. However, its own growth has turned it into the leading consumer of the metal. This, combined with the continued demand across the rest of the world, precipitated the recent sudden surge in the price of tungsten.
History
South Korea once had a thriving mining culture with many relatively small metallic mines including gold, base metals and tungsten/molybdenum. The Sangdong mine was the powerhouse of the economy in the post-Korean War decades, contributing more than 50% of the country's export revenue as one of the largest global tungsten producers. This mine, along with almost all other metallic mines in South Korea, closed in the 1990's primarily due to low commodity prices, at a time when South Korea was emerging as a manufacturing powerhouse with companies such as Hyundai, LG, Samsung and POSCO attaining international prominence.
The mining industry was relegated to an insignificant corner of the economy, now contributing less than 0.5% of the GNP. In fact, in recent years, there appears to be a widespread perception in South Korea that the former mines were fully exploited, never to be re-opened. The former owner of the Sangdong mine, Korea Tungsten Co., evolved into Korea's largest manufacturer of tungsten cutting tools and hard metal tools with the only integrated tungsten production plant in the world, known as TaeguTec Ltd., being wholly owned by IMC.
The boom in commodity prices is underpinning the revival of the South Korean mining industry. Woulfe Mining Corp. was fortunate that it recognized the potential in South Korea prior to the boom and secured title to several properties in 2006, including Sangdong, the Muguk gold/silver mine and the Yeonwha lead/zinc mine, all historically the largest producers of the respective metals in South Korea, plus a number of other secondary properties.
Location and Geology
Location
The Sangdong property is located 187km southeast of Seoul, approximately three hours' drive via expressways and local sealed highways. The nearest settlement is the village of Sangdong within 0.5km and the town of Taebaek with a population of around 60,000 is located some 30km distant.
The property is located in an area of moderately rugged relief, with steep hills rising to approximately 500m above deeply-incised valleys. Despite the terrain, access is well developed; a paved road passes within several hundred metres of the old mill site and forestry roads traverse the property. A power line passes within several kilometres of the property and water sufficient for a mining operation is available either from ground water or from a nearby river.
Temperatures rise to a maximum of about 30°C during the wet summer months of June to August. The winter period is relatively dry and extends from October to March, with freezing temperatures occurring during the period December to February. Snow accumulations can be as much as 1m.
Tenure
The property is comprised of 12 Mining Rights with an aggregate area of 3,173 hectares, held in the name of Sangdong Mining Corporation, a 100%-owned subsidiary of Woulfe.
Regional Geology
Sangdong is a tungsten skarn deposit where mineralization is hosted in hydrothermally altered calcareous sediments and limestone lithologies. The regional geology reflects the position of the Korean peninsula on the eastern margin of the North China-Korean platform underlain by three Archean-aged blocks separated by mobile thrust belts of Phanerozoic age.
Local Geology
Lithology
Sangdong Mine is located on the southern limb of the regional Baegunsan syncline. Precambrian age schistose lithologies form the basement to the area and which outcrops to the south of Sangdong Mine.
Unconformably overlying the basement rocks are the Paleozoic sediments of the Josean Supergroup comprised of two Formations, the basal Jangsan Quartzite Formation and the overlying conformable Myobong Slate Formation. The Jangsan Quartzite crops out at the entrance of the mine and is white, grey or pink, fine to coarse grained, with scattered pebbles and thin pebble layers developed in places. It varies in thickness from 50m to 200m and is thickest in the Sangdong area. The Myobong Slate is comprised of brown, dark grey and black slate with several thin limestone beds that are developed towards the top of the 80m to 150m thick slate package. The limestone beds increase in frequency towards the top of the Myobong Slate Formation. It is within the limestone beds that skarn hosted tungsten mineralization is developed.
The milky white limestone beds of the Pungchon Limestone Formation which forms the basal formation of the Great Limestone Series conformably overlies the Myobong Slate Formation and is between 150m to 200m thick.
At Sangdong, a biotite granite was intersected during exploration drilling at 700m below surface. It is believed that fluids derived from this granite were responsible for the molybdenum and tungsten-molybdenum mineralization in the Jangsan quartzite and skarn mineralization Myobong slate, respectively.
Structure
The Sangdong Mine occurs on the southern limb of the regional Baegunsan syncline which has a predominant east-west strike and dips to the north between 15° and 30°. Historical mapping has recognized two pre-mineralization structures that are believed to be associated with the formation of the Baegunsan syncline. The first is a bedding parallel thrust that is best developed at the hanging-wall contact between the Main Zone (MZ) orebody and slates. This fault is best developed in the central part of the (MZ) orebody but thrust faults have been recognized at the hanging-wall contacts to the Footwall 1, 2 and 3 orebodies (FW1, FW2, FW3). Strike parallel, near vertical shear zones are also developed throughout and across the orebody. These two dominant pre-mineralization faults caused local upwarping of the orebody.
Post mineralization faulting is dominated by a northeast-southwest trending fault set. The frequency and throw of these faults vary across the orebody. Throws across these faults can vary from several centimeters to around 30m. It is these faults that control the deeply incised northeast-southwest trending valleys in the Sangdong area.
Both concordant and discordant veins are developed throughout the Sangdong Mine. It is these veins that host molybdenite mineralization within the tungsten skarn.
Alteration and Mineralization
The tungsten mineralization of the Sangdong deposit is contained within four tabular, bedding-conformable skarn horizons with the Myobong Slate, namely, the Hanging-wall Zone (HW), MZ, FW1, FW2, FW3. The mineralised zone strikes east-west and dips to the north at between 15° and 30° for maximum strike and dip extensions of 1.3km and 1.5km, respectively, and outcrops at approximately 650m elevation on the property.
The HW mineralization is developed at the contact between the underlying Myobong Slate and the overlying Pungchon Limestone Formation. This mineralization varies in thickness between 10m and 30m, but is known to be up to 100m thick where skarn mineralization extends into the overlying limestone of the Punchong Formation. It has not been fully tested due to bad ground conditions.
The MZ orebody which has been extensively mined lies 20m below the hanging-wall contact and is between 4m and 6 m thick.
The FW1 mineralization is between 0.3m and 0.8m and lies 2m below the MZ orebody. The FW1 has only been mined in places where it has coalesced with the MZ orebody. Approximately 40m below the MZ orebody lies the FW2 orebody with an average thickness of 5m. The FW3 orebody is comprised of between two and four lenses of skarn mineralization, each approximately 0.3-0.5m in thickness and occurs 5m below the FW2 orebody. The current defined resources are confined to the MZ, FW2 and FW3 orebodies.
The skarn orebodies are comprised of five main minerals being, quartz, white mica, amphibole, pyroxene and garnet. These minerals have been grouped into three alteration types: quartz-mica, amphibole and pyroxene-garnet. The orebodies are zoned both along strike and down dip from a central quartz-mica zone, through the amphibole to the peripheral pyroxene-garnet zone. It is important to note that within each macroscopic alteration zone, microscopic alteration zones can occur.
The tungsten grade varies from ≥3% WO3 in the quartz-mica alteration zone, gradually decreasing to 1-1.5% WO3 in the amphibole zone through to ~0.3% WO3 in the outer pyroxene-garnet alteration zone.
The main tungsten mineral is scheelite (calcium tungstate, CaWO4), accounting for >95% of the contained tungsten, with minor wolframite. Molybdenite is present throughout as a subsidiary to the tungsten mineralization, more abundantly occurring below the skarn mineralization near the underlying granite and mainly hosted in the Jangsan quartzite. Minor bismuth and gold have been historically recovered.
http://www.woulfemining.com/s/Sangdong.asp
And for them to do it quick I hope.
Quote from last PR dated on 12-17-2014:
ty for the good news balihi. this should be starting the rise of the pps. it will be worth the waiting .
I would think so.This news opens the door for IMC to finalize the agreement.
Thank you. Can I expect SP move on Monday, Finally seriously?
Good news!!.....WOULFE ANNOUNCES COMPLETION OF THE FINAL UPDATE TO THE FEASIBILTY STUDY
January 23, 2015 - Vancouver, Canada - Woulfe Mining Corp. ("Woulfe" or the "Company") (CSE: WOF,
Frankfurt: OZ4) announces completion of the final update to the Feasibility Study and de-risking of the
Tetra Tech 2012 Feasibility Study, on the Sangdong Project, in the Republic of Korea.
The final Feasibility Study was also delivered to IMC in fulfillment of closing procedures for the agreements,
with conditions of the original and amended and restated Strategic Arrangement agreements between
Woulfe and IMC (See news releases dated February 28, 2012 and March 4, 2013) remaining in place,
including, subject to the terms and conditions of the agreements, IMC acquiring a 25% interest in Sangdong
Mining Corporation (Woulfe's 100-owned subsidiary) "(Sangdong") for total consideration of CAD$35
million (less current loan balance and related interest).
(1) The final Feasibility Study has completed the de-risking of the 2012 Tetra Tech Feasibility Study and
updated estimates and forecasts to reflect end of calendar year 2014 costs and market conditions. The
mine is anticipated to produce 450,000 tonnes of ore in Year 1 of production and reach the final 12 year
life of mine capacity of 640,000 tonnes per year, in Year 2. Final forecast financial results from this final
Feasibility Study are:
Phase 1* Mining Plan -1 to Taebaek Levels
(Using 65% WO3 Concentrate Price of $US 15,000 per tonne)
Revenue WO3 Concentrate** - Average Annual $US 62.1 million
Earnings Before Sustaining Capital – Annual Average $US 31.8 million
Pre-tax IRR 26%
Project Total NPV @ 5% Discount Rate $US 156 million
EBITDA / Share Discounted at 5% $CDN 0.067
Reserves Included in Phase 1 - 7.4 million tonnes grading 0.54% WO3
Annual Production Rate 640,000 tonnes
WO3 Processing Plant Recovery Rate 81%
Average Annual WO3 Concentrate Production 3,828 to 4,705 tonnes
Project Pre-Production Capital Expenditures $US74.4 million***
Mine Life 12 years
* 3 levels out of 20 levels in Phase 1.
** No APT downstream minority revenue participation should have been included since February 2012.
***Capex using all new equipment, including Chinese processing equipment and includes an average 15%
contingency.The final Feasibility study continues to rely on parts of the 2012 Tetra Tech reserves.
The final Feasibility Study includes all de-risking of critical elements required for the project as follows:
• Additional 7,200 metres of Definition Drilling & 470 geotechnically logged holes
• Phase 1 Mining detailed resource model by AMC Consultants Pty. Ltd.
• Updating of mine geotechnical analysis
• Highly detailed mining plan using targeted and selective mining methods
• Smaller processing plant using the same flowsheet as the Tetra Tech Feasibility Study
• Substantially reduced capital expenditures from $US151 million to $US74.4 million
Discussion
Phase 4 and 5 drilling programs totalling approximately 7,200 metres of diamond drilling increased the
mineral resources confidence. This infill drilling was on 20 metres centres instead of on the previous 40
metre centres.
The Tetra Tech calculated Probable Reserve of 13.3 million tonnes at a grade of 0.425 % WO3 was for the
whole deposit (all 20 levels). In addition, Tetra Tech included Inferred Resources in the HW Zone of 23.1
million tonnes at a grade of 0.66% WO3. A new NI 43-101 compliant resource block model and resource
estimate for a section of the deposit above -3 level, was prepared to Feasibility Study accuracy for
purposes of NI 43-101 by AMC Mining Consultants Pty. Ltd. (“AMC”) of Australia. (see press release dated
October 15, 2014). This resource estimate included Phases 4 and 5 drilling results. AMC’s resource
estimate included 3.81 million tonnes at a grade of 0.56% WO3 Measured and Indicated Resources &
Inferred Resources in the HW Zone of 7.93 million tonnes at a grade of 0.68% WO3 (using a 0.40% WO3
cutoff grade).
As also announced by Woulfe, drilling of the HW Zone above -1 level (in a Phase 6 drilling program)
outlined Indicated Resources of 419,000 tonnes at a grade of 0.95% WO3 (using a 0.35% WO3 cutoff
grade) undiluted, representing 6% of the Hangingwall total volume associated with the Inferred
Resources above -3 level. The drill tested contained metal content therefore is substantially higher than
predicted. Drilling continues with the aim of converting a further 3 million tonnes of Inferred Resources,
above -3 level, to the Indicated Resources category, by early calendar year 2015.
Rock mechanics and stope design analysis data was substantially increased by undertaking oriented core
drilling and increasing geotechnical logging of drill holes. Turner Mining and Geotechnical Pty. Ltd. of
Australia, retained originally by Tetra Tech, completed the rock mechanics analysis to Feasibility Study
accuracy for purposes of NI 43-101. Rock mass data from less than 30 drillholes was increased to data
from over 500 drillholes and included in excess of 40,000 measurements.
Based on the AMC resource model, the mining method was adapted to the more and very variable nature
of the mineralization envelopes. The new mining model and associated operating costs are estimated to
Feasibility Study accuracy (and to equal or better accuracy than Tetra Tech), for purposes of NI 43-101,
by Services Miniers PRB Inc. (“PRB”) of Val d’Or, Canada and A-Z Mining Professionals Limited of Thunder
Bay, Canada.
The reduced mining rate and de-risking of capital expenditures indicated a significantly smaller (50%)
processing plant would be optimal. Bumigeme Inc. of Montreal, Canada has just completed work, to an equal or higher level of accuracy than Tetra Tech, a design and cost estimates for the processing plant,
based on the Chinese 20 tonne pilot plant test flowsheet. The processing plant flowsheet is similar to that
proposed by Tetra Tech, using flotation to produce a 65% WO3 concentrate. The Tetra Tech study use of a
Chinese proprietary collector, of unknown composition and whose supply would not be guaranteed, is
replaced by an alternate South African collector of equal or better performance. The collector work was
supervised by Mr. Rod Elvish, metallurgist, of Australia, who had previously been retained by Tetra Tech for
Feasibility Study metallurgical testwork and process flowsheet design.
Environmental studies and approvals have been completed. Permits required for the present state of
project advancement have been awarded.
The final Feasibility Study team consists of:
• A-Z Mining Professionals Limited Study management, financial analysis & report
preparation
• AMC Consultants Pty. Ltd. Geology and resources
• Rod Elvish Metallurgy
• Services Miniers PRB Ltd. Mining
• Turner Mining & Geotechnical Pty. Ltd. Geotechnical
• Bumigeme Inc. Processing
(2) Based on the completed positive final Feasibility Study, the consultants to Woulfe have
recommended to Woulfe that the project move to the financing and construction stages.
Malcolm Buck, P. Eng. of A-Z Mining Professionals Limited, a “Qualified Person” under National Instrument
43-101, supervised preparation of the information that forms the basis of the written disclosure in this
news release.
(3) The Company also announces that it has negotiated an extension of the maturity date of the Dundee
Corporation $350,000 convertible loan from January 22, 2015 to July 22, 2015.
The Company also announces that, subject to approval of the Canadian Stock Exchange, it will be issuing
91,579 common shares, at a deemed price of $0.095 per common share, to one of its service providers in
South Korea as partial compensation for ongoing services. The common shares issued for services will be
subject to a four-month hold period from the date of their issuance.
On Behalf of the Board of Directors
Woulfe Mining Corp.
"Michel Gaucher"
Michel Gaucher, CEO and Director
About Woulfe Mining Corp.
Woulfe Mining Corp., through its wholly-owned subsidiary, Sangdong Mining Corporation, is dedicated to
developing the Sangdong tungsten-molybdenum mine which was historically one of the largest tungsten
mines in the world and one of the few long-life, high-grade tungsten deposits located outside of China.
Woulfe Mining Corp. is listed on the Canadian Stock Exchange.For further information please contact:
Mark Gelmon - CFO
Phone +1 (604) 684-6264, email : mark.gelmon@woulfemining.com
Forward Looking Information: This news release includes certain information that may be deemed
“forward-looking information”. Forward-looking information can generally be identified by the use of
forward-looking terminology such as “may”, “will”, “expect”, “intend”, “estimate”, “anticipate”, “believe”,
“continue”, “plans” or similar terminology. All information in this release, other than information of
historical facts, including, without limitation, the timing of the feasibility study update, the potential of the
Sangdong project, engineering and mine planning, general future plans and objectives for the Sangdong
project are forward-looking information that involve various risks and uncertainties. Although the Company
believes that the expectations expressed in such forward-looking information are based on reasonable
assumptions, such expectations are not guarantees of future performance and actual results or developments
may differ materially from those in the forward-looking information. Forward-looking information is based
on a number of material factors and assumptions. Factors that could cause actual results to differ materially
from the forward-looking information include changes in project parameters as plans continue to be refined,
future metal prices, availability of capital and financing on acceptable terms, general economic, market or
business conditions, uninsured risks, regulatory changes, defects in title, availability of personnel, materials
and equipment on a timely basis, accidents or equipment breakdowns, delays in receiving government
approvals, and other risks detailed herein and from time to time in the filings made by the Company with
securities regulatory authorities in Canada. Readers are cautioned that mineral resources that are not
mineral reserves do not have demonstrated economic viability. Mineral exploration and development of
mines is an inherently risky business. Accordingly, actual events may differ materially from those projected
in the forward-looking information. For more information on the Company and the risks and challenges of
our business, investors should review our annual filings which are available at www.sedar.com. Readers are
cautioned not to place undue reliance on forward-looking information. The Company does not undertake to
update any forward looking information, except in accordance with applicable securities laws.
http://www.cnsx.ca/cmsAssets/docs/Filings/2015/2015_01_23_17_10_26_WOF_Woulfe_Announces_Completion_of_the_Final_Update_to_the_Feasibility_Study.pdf
China ends “export quota” system and counters with a “strict export license” to limit the world’s supply of rare earths, tungsten and molybdenum
Posted on January 4, 2015 by Hongpo Shen
China-REEOn December 31, 2014 China’s Ministry of Commerce (MOFCOM) and the General Administration of Customs (GAC) jointly issued the following two announcements, effective January 1, 2015: “Catalogue of Commodities subject to Export License Administration in 2015 (Announcement [2014] No.94)” and “License-Issuing Catalogue in Grades of Export License Administration in 2015 (Announcement [2014] No.97)”. These announcements articulate how China has officially cancelled their policy on export quotas for rare earths, tungsten and molybdenum after losing their World Trade Organization appeal in August 2014.
“48 varieties of goods subject to the administration of export license in 2015 shall be subject to the administration of export quota license, export quota bidding and export license, respectively.
Goods subject to the administration of export license shall include: rare earths, tungsten and molybdenum; Enterprises that export rare earths, tungsten and molybdenum, should apply for an export license on the strength of the export contracts of the enterprises, no need the approval documents of the Ministry of Commerce;” the MOFCOM said in its announcements.
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Despite China ending their quota policy on the exports of rare earths, tungsten and molybdenum for the New Year, the government has begun to implement the export licensing system as a tool to limit export of these rare metals.
“To export rare earths, enterprises shall apply to the designated issuing agency for export licenses and make export declaration at the specified port, which aims to maintain the normal order of operation,” MOFCOM stressed.
According to the announcement, a total of 75 export licenses relate to rare earth ore, metals and compounds listed in the 2015 Catalogue and are now subject to export control by means of licenses, which including 39 kinds of medium-and-heavy rare earths and 36 kinds of light rare earth mixtures. Meanwhile, the ministry has specified 8 declaration ports to allow the enterprises to export rare earths, which includes the following: Tianjin Customs, Shanghai Customs, Qingdao Customs, Huangpu Customs, Huhehaote Customs, Nanchang Customs, Ningbo Customs, Nanjing Customs and Xiamen Customs.
The cancellation of rare earth export quotas in 2015 by the Chinese government is expected to have a limited impact on the global rare earth market. The rare earth export quota system has become less important as it will be offset by the strictly export licensing system and the country’s production quota system at home.
China actual exported 24,826 tons of rare earth ore, metals and compounds in the first 11 months of 2014. Exports volume rose 24.75% year-on-year, but the exports value declined 33.2% to US$341.1 million compared to the same period in 2013, according to the latest data released by the China Customs Statistics Information Center.
The Chinese government will continue to adjust its rare earths policy to further tighten its supply of rare earth metals. The intent is to focus on their domestic market in 2015 due to the WTO ruling and to deal with demand.
“The rare earth permanent magnet industry in 2015 is ushering in a new round of rapid growth, primarily driven by the low-carbon economy such as electric vehicles and energy efficient motors industries,” said Wang Zhenxi, Chairman of Beijing Zhong Ke San Huan High-Tech Co., which uses rare earth metals in production. Previously relying on rare earth stockpiles in China and with the ongoing crackdown on illegal rare earth exports this year, many market players believe that an upward trend for rare earth price is imminent
http://investorintel.com/rare-earth-intel/china-ends-export-quota-system-counters-strict-export-license-policy-limit-worlds-supply-rare-earths-tungsten-molybdenum/
Tungsten is a global strategic metal. Industry needs this metal to make a large percentage of goods, electronics, automobiles, defense weapons and industrial products. Precious metals are important but so are metals like tungsten that are essential for manufacturing and products. No tungsten and the world would feel the impact immediately. And the world is consuming and demanding more and more Tungsten. So I'm picking up more shares of WFEMF on each P/S pullback or other opportunity.
I agree.I do think many investors are too busy chasing precious metals,and don't have any idea of WOF's potential.
IMO, Woulfe Minning is a great opportunity. Tungsten is a strategic metal and the demand for it will continue to increase world wide. I am in on this company and excited about its future development.
Maybe not,over on the Canadian market,someone bought 10,000 shares,and the ask went to .085.Our US market tracks the Canadian,so that could explain the jump in the ask price.
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