Solid Resources Ltd.: Glencore Exercises Option to Take 20% Equity in Cehegin
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 05/06/14 -- Solid
Resources Ltd. ("Solid" or the "Company") (TSX VENTURE: SRW) is
pleased to announce that Glencore Xstrata plc ("Glencore") has
exercised its option to take 20% equity in the Cehegin Iron Ore
Project (the "Project") located in the Province of Murcia,
south-eastern Spain. Solid and Glencore will now proceed to finalise
and sign the Joint Venture Agreement ("the JVA"), the terms of which
were announced on October 21, 2013:
Since October, Solid and Glencore have undertaken and finalized an
internal joint due diligence report on the formerly producing Cehegin
Project, including review of historical drilling and production data.
Glencore elected to exercise its option based on the conclusions and
recommendations of this report. The JVA (Solid 80%, Glencore 20%)
will now commence progression of exploration and phased development
studies with the ultimate objective of developing a new iron ore
Greg Pendura, CEO of Solid Resources commented: "Conclusion of the JV
with Glencore will trigger the start of a Work Program. Solid will
quickly submit the documentation to obtain the necessary permits to
begin drilling. The objective of the initial work program is to
increase our knowledge of the resource potential within the
concessions. The previous five months have seen the management and
technical teams of both Solid and Glencore work together to produce
the due diligence report. I would like to take this opportunity to
thank Glencore for their support and professionalism in advancing
this exciting European project."
Significant terms of the JVA are:
-- Glencore holds a 20% interest, with Solid an 80% interest.
-- Life of mine exclusivity and commitment to purchase all production.
-- Both parties agree to jointly pursue third party financing when
About the Cehegin Iron Ore Concessions
The Cehegin Iron Ore concessions were formerly owned and operated by
the Spanish Ironworks company, Altos Hornos de Vizcaya ("AHV"), the
largest industrial company in Spain for much of the twentieth
century. In 1975, all 62 concessions were grouped together into one
single subsidiary of AHV called Agrupacion Minera, SA. who exploited
one of the open pit mines - Mina Maria, for its own needs until 1989.
The 62 concessions, when fully permitted will total 3,270 hectares.
Solid's 100% wholly owned subsidiary, Solid Mines Espana also made
application for an extension of the property bordering the
investigation permit for 3,630 Hectares. Together these form a
unified total of 6,900 Hectares.
Highlights of the Concessions are:
-- Availability of a large amount of historical drill and production data
-- Historically high quality iron ore concentrate with low impurities
-- 115 km from the site to the Port of Cartagena on a toll-fee highway
-- Rail spur to the Port of Cartagena 14 km from site, toll-free highway 7
km from site
-- Support of regional and municipal governments and interest groups
About Solid Resources
Solid Resources is a Canadian junior mining company focused in Spain
on the exploration and development of rare and industrial metals. The
Company is currently studying the re-opening of the Cehegin iron ore
concessions in south-eastern Spain and is applying for an
exploitation permit on its Alberta-1 tantalum/tin and lithium
property in north-western Spain.
About Glencore Xstrata plc
Glencore is one of the world's largest global diversified natural
resource companies. As a leading integrated producer and marketer of
commodities with a well-balanced portfolio of diverse industrial
assets, they are strongly positioned to capture value at every stage
of the supply chain, from sourcing materials deep underground to
delivering products to an international customer base. The Group's
industrial and marketing activities are supported by a global network
of more than 90 offices located in over 50 countries. Their
diversified operations comprise over 150 mining and metallurgical
sites, offshore oil production assets, farms and agricultural
facilities. They employ approximately 190,000 people, including
Neither the TSX Venture Exchange or its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
Solid Resources Ltd.
President & CEO
+44(0) 20 3463 5000
Director, Corporate Finance
+44(0) 20 3463 5000
Press spacebar to pause and continue. Press esc to stop.