| Mon 16 May 2011, 8:05 | | PET - Petmin Limited - Petmin to invest in Red Crescent Resources and its |
|
PET
PET
PET - Petmin Limited - Petmin to invest in Red Crescent Resources and its
Sivas Copper Project in Turkey
PETMIN LIMITED
Incorporated in the Republic of South Africa
Registration Number 1972/001062/06
Share Code JSE: PET & ISIN: ZAE000076014
Share Code AIM: PTMN
("Petmin" or "the Company")
PETMIN TO INVEST IN RED CRESCENT RESOURCES AND ITS SIVAS COPPER PROJECT IN
TURKEY
Another step in Petmin`s growth path to increase its commodity and
geographic footprint
FOR IMMEDIATE RELEASE
Johannesburg, South Africa. 16 May 2011: Petmin Limited (JSE:PET; AIM:PTMN)
is pleased to announce that it has successfully entered into a transaction on
13 May 2011 with Red Crescent Resources Limited ("RCR"), a mineral
exploration and development company focused on base metals development in
Turkey and listed on the Toronto Stock Exchange, in Canada (TSX: RCB), to
subscribe for shares in RCR and to subsequently invest directly in RCR`s
Sivas Copper Project in central Turkey.
The Sivas Copper Project will be explored and developed by RCR Quantum Mining
A.S. ("RCR Quantum"), which is 75% owned by RCR`s Turkey-based subsidiary,
Red Crescent Resources Holding A.S. ("RCRH") and 25% owned by Gensay (a
Turkish-controlled entity).
Petmin and RCRH will jointly be responsible for the management of the Sivas
project.
Ian Cockerill, Executive Chairman of Petmin, commented that, "The earn-in
investment into the Sivas Copper Project represents an early-stage, low-risk
and cost-effective entry into a potentially highly-prospective and scalable
copper venture that meets our project investment criteria. It represents
further progress on our stated intention of investing in a suite of
commodities used specifically in the urbanisation and infrastructure
development space, and in expanding our global footprint".
"Our Business of Tomorrow growth strategy is to significantly increase the
size of the company through organic and acquisitive growth, in order to
deliver sustainable value to our stakeholders by focusing on a combination of
cash-producing assets, near cash projects and targeted exploration
programmes. The Sivas Copper Project has the potential to add significant
value to our growing pipeline of projects."
Petmin will invest CAD$4.64 million for a 10.1% stake in RCR, of which CAD$3
million will be invested directly into the Sivas Copper Project. Petmin will
then invest up to a maximum of CAD$17 million in the project, in four
conditional tranches over a period of 3.5 years, to earn up to a 37.5%
interest in the Sivas Copper Project as outlined below:
- Tranche 1 - CAD$1 million investment for 5% interest in the project once
the project has delineated an Inferred Resource of copper of 20 million tons
at >1% copper per ton;
- Tranche 2 - CAD$3 million investment for an additional 10% interest (total
direct interest: 15%) in the project, once the project has delineated an
Inferred Resource of copper of not less than 30 million tons at > 1% copper
per ton;
- Tranche 3 - CAD$8 million for an further 16% interest (total direct
interest: 31%) in the project, once the project has delineated an Inferred
Resource of copper of 75 million tons at > 1% copper per ton, of which - 10%
is designated as Measured Resource, 30% is designated as Indicated Resource
and 60% is designated as Inferred Resource;
- Tranch 4 - CAD$5 million investment for an additional 6.5% interest (total
direct interest: 37.5%) in the project, once the project has delineated an
Inferred Resource of copper of not less than 150 million tons at >1% copper
per ton, of which - 20% is designated as Measured Resource, 40% as Indicated
Resource and 40% as Inferred Resource, and has completed a pre-feasibility
study ("PFS").
"Measured Resource", "Indicated Resource" and "Inferred Resource" referred to
above, bear the same meanings ascribed to those terms in the definitions and
guidelines of the Canadian Institute of Mining, Metallurgy and Petroleum
reporting codes.
Should the measurement criteria in Tranches 1 and 2 above be met, Petmin will
be obliged to invest the CAD$1 million and CAD$3 million respectively. The
investments in Tranches 3 and 4 are made at Petmin`s sole discretion.
At each investing point, Petmin will have the option to cease investing
should the drilling or feasibility results not meet its stipulated outcomes.
Petmin intends to meet the initial consideration out of its existing cash
resources.
The Sivas Copper Project is located in the Sivas region of north east Central
Turkey. It includes the rights to three contiguous and adjacent mining
licenses covering an area of approximately 5,240 ha. Red Crescent has two
other projects in the region, the Hakkari Zinc Project and the Tufanbeyli
Zinc Project. RCR has an established track record in Turkey and has a
competent management team. It is well entrenched with local partners in
Turkey.
"The Sivas Copper Project represents one of the most significant milestones
to date," said Alan Clegg, Executive Chairman and CEO of RCR. "We expect to
fast-track this strategic asset to make a development decision within three
years. RCR is committed with Petmin to advancing this potentially world-
class, well-defined mid-exploration phase copper project, up the value curve
to production pending, among other things, completion of due diligence,
positive exploration, and the completion of an Independent Bankable
Feasibility Study ("BFS").
RCR now holds the full data and information set resultant from the period of
activity under which Falconbridge Ltd/Noranda Inc. previously explored the
Sivas copper project whose reports indicated the potential for grades and
tons at least equal to or in excess of the targets outlined in the Petmin
"Earn-In Criteria".
Post the successful completion of the PFS, a Bankable Feasibility Study will
be commissioned and financed pro-rata according to the parties` direct
shareholding in the Sivas Copper Project at the time.
The transaction is subject to fulfilment of all the normal statutory
approvals, including those of the JSE, TSX and SARB.
Petmin will continue to provide regular market updates on the progress made
at this project as well as its iron ore and anthracite exploration projects
and organic expansions in South Africa, Canada and Liberia.
Enquiries:
Jan du Preez, Petmin
+27 11 706 1644
Charmane Russell
+ 27 11 880 3924
+27 82 372 5816
Disclaimer:
This media release may contain certain forward-looking statements concerning
Petmin`s operations, economic performance and financial condition, and plans
and expectations. These statements, including without limitation, those
concerning the market outlook for the company`s products, expectations of
prices, production, the commencement and completion of certain exploration
and production projects, may contain forward-looking views. Such views
involve
both known and unknown risks, assumptions, uncertainties and other important
factors that could materially influence the actual performance of the
company.
No assurance can be given that these will prove to be correct and no
representation or warranty express or implied is given as to the accuracy or
completeness of such views or as to any of the other information in this
media
release. Petmin`s future results may differ materially from past or current
results, and actual results may differ materially from those projected in the
forward-looking statements. Petmin will not be responsible for any loss or
damage howsoever arising of any nature, including consequential loss or
damage
suffered or incurred, directly or indirectly, pursuant to or as a result of
the use of, or any reliance on, this media release or the information
contained herein.
Johannesburg
16 May 2011
Corporate Advisor and Sponsor
River Group
Enquiries:
Petmin
Jan du Preez
+27 11 706 1644
Nominated Advisor (AIM)
Numis Securities Limited
John Harrison
+44 207 260 1000
Sponsor and Corporate Advisor (JSE)
River Group
Andrew Lianos
+27 834 408 365
Date: 16/05/2011 08:05:01 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
