TradeForProfits',TRKP news$TurkPower Corporation to Acquire Majority Interest in Operational Iron Ore Mine in Turkey
2011-07-05 09:00 ET - News Release
NEW YORK, NY -- (MARKET WIRE) -- 07/05/11
TurkPower Corporation (OTCBB: TRKP) (the "Company") is pleased to announce the purchase of 50.09% working interest in Maksor Madencilik Sanayi Ve Ticaret Anonim Sirketi (hereafter "Maksor"), the 100% private owner of the Kuluncak iron ore project in Turkey. The purchase agreement calls for the Company to complete acquisition of 50.09%-interest by December 28, 2011 for a total purchase price of EUR 15,000,000.00 and 73,000,000 shares of the Company. The purchase price and issuance of Company shares are scheduled with a total of 6 payments, including a down payment of EUR 1,000,000.00 which was made in 2010, with final payment and share issuance due December 28, 2011. The down payment and second payment, which was made upon signing of the purchase agreement on June 30th, 2011, secures the Company an irrevocable initial minority stake in Maksor.
Management is looking forward to reporting shortly with more details about the operation of the mine, the characteristics of the iron ore reserves and inferred resources, which include a substantial zinc resource, as well as other mining licenses that Maksor holds in Turkey.
TurkPower's Chairman Ryan E. Hart stated: "This is a great day and milestone for TurkPower and its investors. With the purchase of controlling interest in the operational Kuluncak iron ore mine, TurkPower is taking its first step toward its goal of becoming a leading junior mining company in Turkey. The purchase adds a tangible and operational asset to the Company's balance sheet and leads to expected profitability in 2011. It also gives the Company leverage and credibility for future mining ventures and acquisitions in the booming mining industry of Turkey."
About the Kuluncak Property
The Kuluncak iron ore mine is an open-pit mine which will be operated from May to November and which is expected to produce 550,000 metric tons of iron ore per season no later than 2014. According to a two-year feasibility study conducted in 2008 and 2009, the mine has estimated reserves of 20,900,000 metric tons for a net value of approximately $3bn based on current market prices for 58% - 62%-grade iron ore. The feasibility study was performed by one of the world's leading mining companies, which concluded: "The project offers great value for money if a small mine is what one is looking for." The mine was put into operation in June 2011, and has more than 140,000 metric tons of iron ore in inventory, which will be sold entirely no later than Q3 2011.
The Kuluncak mine produced more than 280,000 tons of iron ore in the late 1990s and all necessary infrastructure is already in place, including good quality roads to the railroad line with direct access to deep-sea ports and local steel smelters. The mine is located in the mining area of Malatya, Turkey, approximately 500km east of Turkey's capital Ankara.
About TurkPower Corporation
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