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Press release from Marketwire


Wednesday, January 16, 2013

QUARTERLY OPERATIONAL UPDATE02:12 EST Wednesday, January 16, 2013NICOSIA, CYPRUS--(Marketwire - January 15, 2013) - EMED MINING QUARTERLY OPERATIONAL UPDATE EMED Mining is listed on AIM (Code: EMED) and the TSX (Code: EMD) 16 January 2013EMED Mining Public Limited (AIM: EMED, TSX: EMD) ("EMED Mining" or "theCompany"), the Europe-based minerals development and explorationcompany, announces today the following operational update for theperiod 1 October 2012 to 31 December 2012. The full Quarterly Report,including consolidated Financial Statements and the ManagementDiscussion and Analysis, will be issued by 29 March 2013.Harry Anagnostaras Adams, Managing Director of EMED Mining,commented:"During the December quarter we brought the Rio Tinto CopperProject tothe threshold of commencing preparations for construction at its firstand largest mine. We maintain our target of establishing an initialbase case production rate of 37,000 tonnes per annumcopper-in-concentrate at the end of 2015, based on our target ofcommencing production in 2014 with the start of plant construction in2013."Significant expansion plans are also being formulated as also anambitious exploration program focused on re-establishing the Rio TintoCopper Project as mining field with several mines operating around acentral processing plant."As at 31 December 2012, we had provided alldocuments requested by theauthorities for approval of key permits to proceed, we updated allcapital and operating cost estimates for updating the NI-43-101Technical Report, and we complemented our strong financial base byintroducing Red Kite to our group of cornerstone customer/financierswhich also includes Goldman Sachs and Xianguang."Since the end of theDecember quarter, we established the insurancefor the tailings deposit after agreement with the regulators and weestablished the Social Licence Agreement with all seven localmunicipalities. Currently, we await regulatory approvals required fortriggering the project resulting from a lengthy permitting process, thework for which is largely completed. We are focused on commencingconstruction in H2-2013, by having attained requisite permits in therecently agreed sequence during the first two quarters of 2013."Key PointsSpain-Rio Tinto Copper Project- Our work schedule maintains the target date of end-2015 forestablishing initial base case production of 37,000 tonnes per annum,with construction starting in H2-2013 and production in 2014. Thisrelies primarily on the achievement of the updated target timing forregulatory permitting as set out below. This is currently beingaddressed in earnest with the authorities.- Andalucian Government approvals required for the project restartare being progressed as follows:o Administrative Standing (administrative recognition of thehistorical transfer of Mineral Rights):- This approval requires the regulatory clearance of economic,technical and legal "capacities". Legal capacity was cleared in March2011. All documents in respect of legal, technical and economiccapacities were updated in September 2012, as requested by theregulatory authority, and lodged for final clearance.o Environmental Plans:- The period for public comment closed at the end of July 2012. InOctober 2012, we received from, and responded to, the regulatoryauthority as regards the comments made by the public. We also providedin December formal responses to other regulatory requests received inQ4-12.- The Department of Environment has indicated that it will, duringQ1-2013, issue the final version of plans for comment by any relevant3rd parties and resolve its approval.o Final Restoration Plan:- Upon approval of the Environmental Plans, the Company will update theRestoration Plan so that it can proceed to public viewing to befollowed by its final approval.o Project Approval (Exploitation Rights)- The independent review of the project as a whole was completed by theCentral Government's technical review agency IGME (Instituto Geologicoy Minero de Espana) and its supportive report has been received andnoted.- The independent review of the tailings deposit for geotechnicalsafety was completed by the Central Government's technical reviewagency CEDEX (Centro de Estudios y Experimentacion de Obras Publicas).Its initial report with supportive conclusions now stands pendingcompletion in Q2-2013 of due diligence on sections of the tailings damacquired in August 2012. This will facilitate approval of finalrefinements to the system for management of the tailings deposit toensure safety margins with respect to Best Available Techniques basedonenvironmental, economic and other relevant criteria.o Bonding for environmental commitments and protection of personnelentitlements:- The Company has started to engage on this matter which can only beresolved by the authorities after approval of the Final RestorationPlan.- In the meantime, we have implemented civil liability insurance on thetailings deposit on a basis pre-agreed with the regulators.- The Social Licence Agreement has been established with the sevenmunicipalities of the Mining District of Riotinto (Cuenca Minera deRiotinto) setting out relevant policies including those for localemployment, preferential local procurement and the objectives of theplanned EMED Foundation for Economic Diversification of the MiningDistrict of Riotinto. This demonstrates across-the-board agreement withevery major political party in Andalucia.- Product marketing arrangements are being discussed withappropriate third parties, to complement those already in place withGoldman Sachs, Xiangguang and Red Kite.Other Projects- In Slovakia, the Detva Gold Project focuses on communityconsultation as part of the processing of its application for theregulatory approval of its Mining Lease Area, which has already beenapproved at the District Level and will now be referred the nationalregulator.- In Andalucia, Spain, regulatory approval is also advancing forthe Company's plans to test the recoverability of significant preciousmetals mineralisation contained in waste material on the Rio Tintoproperty. This sub-project is in joint venture with Andalucianinvestment group, Rumbo 5 Cero, which is also a substantial shareholderof EMED Mining. Initial plans will be soon issued for public comment.Corporate- The General Meeting of shareholders on 19 December 2012 approvedall resolutions, including the completion of transactions with RedKite, the Company's new cornerstone customer. The Meeting was held inMinas de Rio Tinto and was attended by some Andalucia-basedshareholders who, in aggregate, now own over 10% of the Company'sshares.- An updated NI-43-101 Technical Report will be released thisquarter to update shareholders as regards estimates of capital andoperating costs and project schedules.- Project financing documentation is being readied for triggeringof formal approval processes to support drawdown in H2-2013, subject toEMED Mining satisfying conditions precedent emerging from theregulatory permitting process.- A shareholder briefing will be held in London on 17 January 2013with a live webcast for shareholders unable to attend (see announcementdated 09 January 2013).- It is now clear that Andalucia's new pro mine-developmentpolicies are beginning to have a beneficial effect with over 60minerals projects in the region. Combined with the recent minestart-ups and the expected imminent restart of the Rio Tinto CopperProject, it seems likely that the Iberian Pyrite Belt will nowre-emerge as a globally significant minerals province.Corporate DirectoryDirectors Non-Executive Chairman - Ronnie Beevor Managing Director - Harry Anagnostaras-Adams Finance Director - John Leach Non-Executive Directors - Jasper Bertisen, Roger Davey, Robert Francis, Harry Liu, Jose Sierra Lopez, Ashwath MehraNominated RFC Corporate Finance - Stuart Laing (+61 8 9480 2500)AdviserBrokers Fox-Davies Capital Limited - Simon Leathers (+44 203 463 5022) Fairfax I.S. PLC - Ewan Leggat/Katy Birkin (+44 207 598 5368) Canaccord Genuity - Craig Warren (+1 416 869 7316)Public Bishopsgate Communications - Nick Rome (+44 207 562 3366)RelationsShare Computershare Investor ServicesRegistrarIssued 31 December 2012Capital 1,177 million shares on issue 75 million options and warrants on issue 1,252 million shares on issue on a fully diluted basisSignificant Management and Board (excl. companies they 6%Shareholders represent)(fully Resource Capital Funds (USA and Australia) 13%diluted) Xiangguang International Holdings (China) 11% RBC Asset Management (Canada) 8% RMB Australia Holdings Limited (Australia and 5% elsewhere) Red Kite 5% Rumbo 5 Cero 4% Astor Holdings AG (formerly MRI Group) (Switzerland) 3%Enquiries:Investors/Media: Harry Anagnostaras-Adams +357 9945 7843.In North America : Andreas Curkovic +1 416-577-9927General: Email: This information is provided by RNS The company news service from the London Stock ExchangeENDFOR FURTHER INFORMATION PLEASE CONTACT: Contact Information: RNSCustomerServices0044-207797-4400rns@londonstockexchange.com