ACN. 000 317 251
MARKET RELEASE 02nd March 2015
CHINA OCEANWIDE INTERNATIONAL INVESTMENT CO LIMITED RECEIVE F.I.R.B APPROVAL FOR PLACEMENT OF 24 MILLION NEW FULLY PAID SHARES @ $A1.25 PER SHARE IN CUDECO LTD.
The new issue of shares to Oceanwide, the Company's largest shareholder, increases its shareholding to 19.99% of the issued shares in CuDeco.
Negotiations with a number of other parties are still ongoing for the placements of further CuDeco Securities (the reason for the trading halt), required to complete the funding for the Rocklands Group Copper Project.
The Company is currently in a trading halt and requested voluntarily suspension from trading on the ASX. The CuDeco Board requested the Company to enter into voluntary suspension from trading on the ASX to allow the Company to complete a capital raising in addition to the Oceanwide deal. The approval by the Australian Foreign Investment Review Board (FIRB), was required to allow Oceanwide to increase its shareholding in CuDeco to the maximum allowable shareholding of 19.99%. The increase in shareholding by Oceanwide (approved by shareholders, by way of a recent EGM) is for the issue of 24m new shares at $A1.25 per share, for a total consideration of $A30m. FIRB required up to 30 days to make a determination.
The Company will request trading to re-commence on the ASX on completion of the new placements. The Company anticipates that the new placement will be for up to 40m shares @
$1.25 to raise up to A$50m. The Company is in final stages of negotiations with a number of interested parties for the new placements and expects to finalise these placements by mid- March. The new placements, is to allow the Company to fund the ongoing working capital obligations and to provide funds for the completion of the mineral processing facility and to allow the company to enter into commercial production. We are advised by our EPC contractor Sinosteel that the electrical installation is almost ready to commence and that commissioning of the first section of the mineral processing facility will commence in late June 2015. Sinosteel Corporation, as EPC contractor is responsible for the construction and commissioning of the Rocklands mineral processing facility.
The Company is aware that the voluntary suspension from trading on the ASX may cause some disruption to some CuDeco shareholders. The Board's paramount concern is to remain
Unit 34, Brickworks Annex,19 Brolga Avenue, SOUTHPORT 4215
Phone: +617 5503 1955 Facsimile: +617 5503 0288
committed to ensuring that the best possible outcome for shareholders is achieved in these current negotiations.
Operational Update
Mining at Rocklands is continuing on a non-stop 13 hour a day x 7 day a week basis. The mining has concentrated on stripping the waste in tandem with mining and stockpiling of the sulphide ore ready for processing operations. The Copper rich sulphide zones are located at the NW and SE ends and below the native Copper zone at Las Minerale. Stockpiling of the Copper rich sulphides commenced in late January. Mining, stockpiling and processing also continues with ore from the Native Copper zone.
The ore sorter and screening plant is fully operational, removing the +40mm fraction size native Copper on a single day shift which next week will increase to a 24 hour a day nonstop operation. The main process plant recovers the sulphide Copper, Gold and Cobalt via traditional flotation method with the specifically German designed and manufactured $A23m gravity circuit that recovers 98% of the coarse native copper. The gravity circuit is designed to recover only the
40mm (~2") fraction size native copper. The ore sorter is a separate circuit and not included in the main process facility. It was set up to remove the +40mm fraction size native copper nuggets which account for (based on bulk metallurgical testing programmes), 7.25% of the total native copper.
Process Plant Update
The 20 "E-houses" (up to 28m in length and up to 59 tonnes each) manufactured by German company Siemens, that contain the electrics, control units and the Honeywell supplied DCS (computer hardware and software to operate the processing plant), have arrived at Townsville Port with some already installed and the balance expected to be delivered and installed on site over the next 21 days. The 28 Megawatt "High Voltage Power Station" supplied and installed by Cummins Australia is finished and has completed no-load commissioning.
Manufacture of the 300 km of electrical cable required for the Rocklands project commenced in mid-January, with 60% of the total cable already completed and on board a ship, due for arrival at Townsville Port in 1 week. The installation of the "E-Houses" and the installation of the cable is the final phase to be completed, prior to commissioning. Sinosteel Corporation of China is the EPC Contractor to provide the turnkey mineral processing plant at Rocklands.
A further update to shareholders, on current operations at the Rocklands Copper Project will be forthcoming this month.
End
The Board
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Competent Person Statement
The information in this report insofar as it relates to Metallurgical Test Results and Recoveries, is based on information compiled by Mr Peter Hutchison, MRACI Ch Chem, MAusIMM, a full-time executive director of CuDeco Ltd. Mr Hutchison has sufficient experience in hydrometallurgical and metallurgical techniques which is relevant to the results under consideration and to the activity which he is undertaking to qualify as a competent person for the purposes of this report. Mr Hutchison consents to the inclusion in this report of the information, in the form and context in which it appears.
Disclaimer and Forward-looking Statements
This report contains forward-looking statements that are subject to risk factors associated with resources businesses. It is believed that the expectations reflected in these statements are reasonable, but they may be affected by a variety of variables and changes in underlying assumptions which could cause actual results or trends to differ materially, including, but not limited to: price fluctuations, actual demand, currency fluctuations, drilling and production results, reserve estimates, loss of market, industry competition, environmental risks, physical risks, legislative, fiscal and regulatory developments, economic and financial market conditions in various countries and regions, political risks, project delays or advancements, approvals and cost estimates.
The estimation of grades of the native copper product is, due to the very coarse nature of the products being assessed, assayed on a coarse basis and as a result may be slightly higher or slightly lower. The only contamination maybe some small amounts of rock still being attached after crushing, but visually the native copper nuggets are very clean
and the rock fractured off with minimal crushing.
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