EuroGas Enters Into Long-Term Talc Supply Agreement With Mondo Minerals, Europe's Largest Talc Producer
NEW YORK, NY -- (Marketwire) -- 03/12/09 -- EuroGas, Inc. (PINKSHEETS: EUGS) (FRANKFURT: EUG) (XETRA: EUG) (HAMB: EUG) (STUT: EUG) today announced that its wholly owned subsidiary, EuroGas GmbH, acting on behalf of Rozmin s.r.o. (a company in which EuroGas owns or has the option to acquire a 90% interest), has entered into a long-term talc supply agreement with Mondo Minerals, a well-established, market-leading producer of talc in Europe headquartered in Helsinki, Finland.
The terms of the ten year supply agreement call for Rozmin to supply a minimum of 60,000 tons of talc from its deposit at Germerska Poloma in the Slovak Republic to Mondo Minerals with production commencing in 2009 or 2010. The agreement grants Mondo Minerals an option to extend the agreement by an additional 10 year term. Prices and supply conditions will be agreed in a subsequent comprehensive agreement; the parties have already agreed that the prices will be based on talcum prices valid on the world market (in US dollars). Mondo Minerals has been granted a right of first refusal to acquire Rozmin in the event that EuroGas opts to sell a 51% or greater interest in Rozmin.
Wulf Dietrich Keller, Managing Director of Mondo Minerals, commented, "We are convinced that the ownership and concession rights will be cleared in favor of Rozmin in connection with this signed Talc Delivery Contract, and we are also convinced that EuroGas Inc. will be a long-term reliable partner as far as the delivery of high-quality talc for Mondo Minerals is concerned. I therefore see the cooperation with EuroGas Inc. as a further opportunity for Mondo Minerals to solidify its position as one of the leading Talc-Providers and Talc Refiners world-wide and to exploit additional advantage in this area."
"We are pleased to have entered into this long-term talc supply agreement with Mondo Minerals, which we deem to be the preeminent leader in talc in Europe," said Wolfgang Rauball, President and CEO, EuroGas. "Having secured a long-term purchaser of our talc output -- a prerequisite to initiating production -- we will now move forward to secure the project financing necessary to place the Germerska Poloma deposit into production and start generating significant cash flow, a development which we believe will build shareholder value."
About Mondo Minerals
Mondo Minerals is one of Europe's major talc producers with an annual production of some 650,000 tonnes. It mines talc from its own quarries in Finland and processes its product range at its plants in Sotkamo, Vuonos and Kaavi. It also has a processing plant in Amsterdam and a slurry makedown plant at Katwijk (NL). In 2006, Mondo Minerals undertook the biggest investment project in its history, increasing finegrinding capacity at the Sotkamo plant to 330,000 tpa, making it the biggest single talc production facility in the world. The Amsterdam plant was equipped with new jet-mills, bringing the capacity up to 100,000 tons. Total capacity at Mondo Minerals is now 760,000 tpa, and a turnover of EUR 130 million is achieved by less than 200 employees. Mondo Minerals celebrated its 40th anniversary in 2007.
Further information on Mondo Minerals can be found at www.mondominerals.com
About EuroGas, Inc.
EuroGas is a publicly traded oil and gas company with assets in Ukraine and Poland, as well as talc mining interests in the Slovak Republic. The company's common stock trades on the Frankfurt and Hamburg Stock Exchanges and Xetra in Germany under the symbol EUG and on the Other OTC (Pink Sheets) in the United States under the symbol EUGS. Further information about EuroGas can be found at www.eurogasinc.com
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This press release includes forward-looking statements intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995.
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For further information, please contact:
Wolfgang Rauball
President & CEO
EuroGas, Inc.
Telephone: (212) 618-1274
