4ba7cda0-b9a7-4aab-bb54-de5dd818d85d.pdf
COMPLETION OF PLACEMENT
ELEMENTAL MINERALS LIMITED
Level 3, 88 William Street, Perth,
Western Australia 6000
Telephone: +61 (8) 9463 2463
Facsimile: +61 (8) 9463 2499
EMAIL AND WEBSITE
[email protected] www.elementalminerals.com
DIRECTORS
Chairman: David Hathorn Managing Director: Sean Bennett Non-exec Director: Sam Middlemas Non-exec Director: Leonard Math
ISSUED CAPITAL
(As at - 31 Mar 2016) 433.36m Ordinary Shares ASX Code: ELM
Perth, Australia, 31 March 2016 - Elemental Minerals Ltd. (ASX: ELM) ('Elemental' or 'the Company') is pleased to advised that the remaining balance of the A$2.44m placement announced on 12 February 2016 has been completed.
In addition, the Company has further raised $0.36m through the issue of 1.8m fully paid ordinary shares at A$0.20 from unrelated sophisticated and institutional investors. The funds raised will be used to supplement Elemental's working capital and allow the continuation of the process of completing the planned US$50M equity investment by SUMMIT as well as to continue with the execution of the Company's Master Plan.
The placement will be made using the Company's existing Listing Rule 7.1 capacity, and shareholder approval will not be sought for the issue.
Contact
Elemental Minerals
Sean Bennett - Managing Director
+27 11 4699140
Fivemark Partners Michael Vaughan
+61 422 602 720
About Elemental Minerals Limited
Elemental Minerals Limited (ASX: ELM) is an advanced stage mineral exploration and development company whose primary asset is 97%-owned Sintoukola Potash SARL (SP) in the RoC. SP holds 100% ownership of the Sintoukola Exploration Permit and 100% of the Kola Mining Lease, within which the Kola, Dougou and Yangala Projects are located.
These properties are easily accessed, being located approximately 80km to the north of the city of Pointe Noire. The Projects have the potential to be among the world's lowest-cost potash producers and their location near the Congolese coast of Central West Africa offers a transport cost advantage to key Brazilian and Asian fertilizer markets. The three projects are at varying stages of development; the Kola sylvinite Project is the Company's lead project.
Kola is a large sylvinite deposit, for which a Pre-Feasibility Study (PFS) defined Proven and Probable Reserves of 152 Mt of sylvinite ore1 with an average grade of 31.7% KCl to be mined by conventional underground methods (at a depth of between 200 and 300 m), for a full scale production of 2 Mtpa Muriate of Potash (MoP) by 2024. A Mining License and ESIA approval for Kola were granted in August 20132.
The Dougou Deposit is 15 km southwest of Kola and is a very large carnallitite deposit with a Measured and Indicated Potash Mineral Resource of 1.1 billion tonnes grading 20.6% KCl (at a depth of between 400 and 600 metres) hosted by 35-40 metres of carnallitite within 4 flat-lying seams3. A Scoping Study was completed by ERCOSPLAN of Germany in February 20154. This Study indicates that a low capital cost, low operating cost (Life of Mine operating cost of US$68 per tonne MOP), quick to production carnallite5 solution mine can be established at Dougou, taking advantage of the deposit quality and availability of cheap energy in the RoC.
The Yangala Sylvinite Prospect lies immediately west of Dougou. At Yangala, the Company has drilled two holes, both intersecting a flat-lying layer of over 4 to 4.5 metres thickness with a grade of between 57 and 60% KCl, a candidate for the world's highest grading potash seam6. An Exploration Target of 235 to 470 Mt grading 55 to 60 % KCl was announced on 27th January 20157.
Elemental's management team has a record of bringing quality African mineral projects to production. For more information contact us or visit www.elementalminerals.com.
1 NI 43-101 Technical Report. PFS for the Kola Deposit, 17 September 2012 (SRK Consulting)
2 Announcement dated 15 August 2013: Elemental Minerals Announces Award of Mining License for the Kola Potash Project.
3 Announcement dated 9 February 2015: Elemental Minerals Announces Large Mineral Resource Expansion and Upgrade for the Dougou Potash Deposit.
4 Announcement dated 17 February 2015: Results for the Dougou Potash Project Scoping Study
5 Carnallitite: a rock comprising of the potash mineral carnallite (KMgCl3·6H2O) and other minerals such as halite (NaCl).
6 Announcement dated 20 October 2014: Elemental Minerals Announces results for the Phase 1B drilling programme in the Dougou-Yangala area (part of the Sintoukola Potash Project) in the Republic of Congo (RoC).
7 Announcement dated 27 January 2015: Elemental Minerals Announces an Exploration Target for the High Grade Sylvinite Hangingwall Seam at the Yangala Prospect.
Potash Mineral R
|
esources
|
Potash Deposit
|
Category
|
Million Tonnes
|
Grade KCl %
|
|
Kola Sylvinite
|
Measured
|
264
|
33.75
|
Indicated
|
309
|
32.61
|
Inferred
|
475
|
32.48
|
TOTAL
|
1,048
|
32.84
|
|
Kola Carnallitite
|
Measured
|
295
|
17.83
|
Indicated
|
449
|
18.69
|
Inferred
|
473
|
18.81
|
TOTAL
|
1,217
|
18.53
|
|
Dougou Carnallitite
|
Measured
|
148
|
20.07
|
Indicated
|
920
|
20.65
|
Inferred
|
1,988
|
20.77
|
TOTAL
|
3,056
|
20.70
|
|
TOTAL MINERAL RESOURCES
|
Measured
|
707
|
24.24
|
Indicated
|
1,678
|
22.33
|
Inferred
|
2,936
|
22.35
|
TOTAL
|
5,321
|
22.59
|
Table 1. Elemental Minerals' potash Resources
Notes: The Kola Mineral resources were estimated by CSA Global of Perth, and reported under the JORC Code 2004. Elemental is not aware of any new information or data that materially affects the information included in the Announcement to the ASX on the 21th August titled "Elemental Announces Further Significant Mineral Resource Upgrade for Kola". In the case of the Mineral Resources the company can confirm the assumptions and the technical parameters underpinning the estimates continue to apply and have not materially changed. The form and context of the Competent Person's findings as presented in the announcement have not materially changed. The Dougou Mineral Resource was completed by ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH ("ERCOSPLAN") and reported in accordance with the JORC 2012 code in the ASX announcement dated 9 February 2015 titled "Elemental Minerals Announces Large Mineral Resource Expansion and Upgrade for the Dougou Potash Deposit". Table entries are rounded to the appropriate significant figure. A conversion factor of 1.5837 was used to convert K2O to KCl. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, marketing, or other relevant issues.
Category
|
Million Tonnes
|
Grade KCl %
|
Proven
|
88
|
31.68
|
Probable
|
64
|
31.69
|
TOTAL
|
152
|
31.69
|
Table 2. Elemental Minerals' potash Ore Reserves
Notes: The Kola Sylvinite Mineral Reserves were determined by SRK Consulting and described in detail in the report titled 'NI 43-101 Technical Report for the Sintoukola Potash Project, Republic of Congo' dated 17 September 2012 and have not changed since then.
Forward-Looking Statements
This news release contains statements that are "forward-looking". Generally, the words "expect," "potential", "intend," "estimate," "will" and similar expressions identify forward-looking statements. By their very nature, forward-looking statements are subject to known and unknown risks and uncertainties that may cause our actual results, performance or achievements, to differ materially from those expressed or implied in any of our forward-looking statements, which are not guarantees of future performance. Statements in this news release regarding the Company's business or proposed business, which are not historical facts, are "forward looking" statements that involve risks and uncertainties, such as resource estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements. Investors are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date they are made.
Competent Person Statement:
The information relating to Exploration Targets, Exploration Results, Mineral Resources or Ore Reserves, and the results of economic studies, is extracted from previous reports, as referred to herein, and available to view on the Company's website. The company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements and, in the case of estimates of Mineral Resources or Ore Reserves, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the original market announcement.