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Tuesday, 02/03/2015 12:16:23 PM

Tuesday, February 03, 2015 12:16:23 PM

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Ivernia Announces Move to Care & Maintenance Amid Difficult Market Conditions

Ivernia Inc.
January 16, 2015 7:46 AM
GlobeNewswire

TORONTO, Jan. 16, 2015 (GLOBE NEWSWIRE) -- Ivernia Inc.("Ivernia" or, collectively with its subsidiaries, the "Company") (IVW.TO) today provided an operations update for the Paroo Station Mine (the "Mine"). After review with the Finance Committee and support of the Board of Directors, management today authorized the wind-down of the Mine's operations to care and maintenance until further notice in light of weak LME lead prices that have seen a significant decline in recent weeks.

Key points:

The LME cash settlement price of lead has fallen sharply over the fourth quarter of 2014 and is trading at 30 month lows.
The Company's cost saving measures and mine optimization plan have not been enough to offset the impact of the decline in lead metal prices.
The Company will initiate a safe and orderly scaling back of operations as soon as possible and revert the operation to care and maintenance.
This action has been taken in order to preserve and protect shareholder value.
The operation remains in compliance with all operating permits and will be poised to return to full production once price conditions improve.
After reaching a high of $2269 per tonne on July 28th 2014 the LME lead price has since deteriorated 23% trading at levels not seen since June 2012. The Mine was not in operation during 2012.

"Despite record production and sales in 2014 and the progress we have made to reduce costs and improve efficiencies at the Mine, the current LME lead price has dropped well below sustainable levels and cannot support profitable ongoing operations. In order to protect shareholder value and conserve the viable deposits of our ore body, the decision has been made to place the Mine on care and maintenance until further notice," said Wayne Richardson, President and CEO.

Management has commenced discussions with its lenders, employees, customers, mining contractor, suppliers and other key stakeholders in regards to the change in operations. Management and the Board will re-evaluate the status of the Mine as market conditions warrant. Management is awaiting the outcomes from its new independent technical report on its deposits to help it assess at which lead price it could sustainably resume operations. As a result of market conditions, the Company will not be providing guidance on its expected remaining production and sales of lead contained in concentrate prior to completing a scale back of operations to care & maintenance.

Further updates will be provided as warranted.

About Ivernia

Ivernia is an international base metal mining company and the owner of the Paroo Station Mine, located in Western Australia. Ivernia trades under the symbol "IVW" on the Toronto Stock Exchange. Ivernia and the Mine operate under a management services arrangement with Enirgi Group Corporation, Ivernia's majority shareholder.

Additional information on Ivernia is available on the Company's website at www.ivernia.com and at SEDAR at www.sedar.com.

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