Palladon Ventures Ltd.: Shareholder Update Regarding CML Metals, Inc.
03 12월 2010 - 8:37AM
Marketwired
Palladon Ventures Ltd. ("Palladon" or the "Company") (TSX VENTURE:
PLL)(FRANKFURT: PV-1) is pleased to relay the following letter to
shareholders received yesterday from CML Metals Inc.("CML")
providing an update on operations, sales and shipments of
run-of-mine ore from Iron Mountain to customers in China.
Additionally, CML lays out its concentrate strategy with a
scheduled completion date in early 2012 and financing plans to fund
the $65 million capex budget for the concentrate facility at Iron
Mountain.
CML Metals Shareholder Update
Dear Shareholder,
I am pleased to provide an update on the state of our operations
and financing for the construction of the concentrator
facility.
Operations Update
Since shipping commenced in September, CML has sold and
delivered 142,145 metric tons of run-of-mine ore to various
purchasers. In addition, CML has booked shipments through January
for approximately 100,000 tons of ore to be sold and delivered to
buyers in China. At the current sales price for run-of-mine ore,
CML is exceeding its production and logistics costs and expects to
be profitable in the fourth quarter. With increasing customer
demand, CML is undertaking to double its run-of-mine capacity to
100,000 tons per month and is actively working with the logistics
providers, including numerous ports on the western coast of the US
and Canada, to assess the viability of doing so for February
deliveries.
Concentrator Update
Pursuant to the Company's strategy of moving as quickly as
possible to a concentrate product, CML has contracted Samuel
Engineering, a highly respected engineering/design firm, for the
numerous projects that are required to design and construct the
concentrator plant. The Metallurgical Test Work Program is in its
final stages, specifying the filtration and water separation
circuit that will remove the process water from the concentrate.
The test work needed to facilitate the design of the grinding and
magnetic-separation circuits of the plant has been completed. The
resulting flow sheet and subsequent variability testing indicate a
final Fe content up to 67.5%, which is considered a premium
concentrate product, significantly above the index standard of 62%.
Plant design and equipment procurement have also commenced with
major components being identified and integrated into building
design and plant layout; preliminary drawings are already in
circulation. Construction schedules are being updated as projects
progress and continue to show plant completion, and concentrator
production, in early 2012.
Financing Update
On November 23rd, CML signed a non-binding term sheet with an
internationally recognized bulge bracket bank outlining material
terms for a potential $45 million loan. Such loan may be funded in
two phases: a) an initial $20 million loan, which is expected to
close this year, and b) a $25 million add-on loan that is subject
to various closing conditions including a final independent
engineer's report and an offtake agreement in place for the sale of
concentrate. Although CML and the lender have not yet finalized
definitive terms or entered into definitive commitment agreements,
the parties are working diligently towards that end. As with all
loans, the loan will be subject to various customary and other
conditions precedent including final credit approvals, satisfactory
documentations and the completion of due diligence by such bank
(and the bank has not provided any guarantees that any commitments
will be forthcoming prior to satisfaction of such conditions). CML
is seeking to have full loan documentation completed by year-end
after which more details concerning the facility will be
provided.
In order to facilitate the closing of the Phase I facility and
to fully-finance the construction of the concentrator, CML will be
raising $20mm of equity by year-end. To fund its $20 million equity
portion of the construction budget, CML expects to either raise
equity from its existing shareholders, or from new investors. In
the event equity is raised from existing shareholders, each
shareholder will have a right to maintain their existing ownership
of CML by participating in the offering. We will provide more
detail on the equity offering in the coming days.
Thank you again for your continuing support.
Dale Gilbert, CEO
CML Metals Inc.
Palladon is pleased with the progress CML has made in ramping up
production and proving out its logistics plans. The Company
continues to believe pursuing a concentrate scenario is the best
strategy and fully supports the initiatives outlined above.
Although details have not been finalized, CML indicated $20 million
equity capital will be required from either an outside source or
existing shareholders. If the $20 million in equity is financed by
existing investors, Palladon would have a right to buy up to 21.7%
of the shares which would equate to approximately $4.34 million. We
will inform investors when we know more from CML on whether the
equity will come from new or existing investors.
In addition, on the corporate front, the company is seeking the
necessary regulatory related approvals such that it can set and
disclose an effective date for the 10 for 1 reverse share
consolidation which was approved at Palladon's recent Annual
General and Special Meeting. Palladon will announce the effective
date promptly once it has been set.
About Palladon Ventures Ltd.
Palladon Ventures Ltd. holds a significant minority interest in
CML Metals Inc., which is focused on advancing the Iron Mountain
project, an iron ore mine located west of Cedar City, Utah.
Disclaimer for Forward-Looking Information:
Certain statements in this release are forward-looking
statements, which reflect the expectations of management.
Forward-looking statements consist of statements that are not
purely historical, including any statements regarding beliefs,
plans, expectations or intentions regarding the future, including
but not limited to the commencement of shipping under the offtake
agreement with CKI and future anticipated shipping volumes
thereunder, pricing for the run-of-mine iron and the potential
construction and financing of a concentrate facility. Such
statements are subject to risks and uncertainties that may cause
actual results, performance or developments to differ materially
from those contained in the statements. No assurance can be given
that any of the events anticipated by the forward-looking
statements will occur or, if they do occur, what benefits the
Company will obtain from them. These forward-looking statements
reflect management's current views and are based on certain
expectations, estimates and assumptions which may prove to be
incorrect. A number of risks and uncertainties could cause our
actual results to differ materially from those expressed or implied
by the forward-looking statements, including: (1) a downturn in
general economic conditions in North America and internationally,
(2) the inherent uncertainties and speculative nature associated
with mineral exploration and production, (3) a decreased demand for
minerals, (4) any number of events or causes which may delay or
cease exploration and development of the Company's property
interests, such as environmental liabilities, weather, mechanical
failures, safety concerns and labor problems; (5) the risk that the
Company does not execute its business plan, (6) inability to retain
key employees, and (7) inability to finance operations and growth,
(8) other factors beyond the Company's control. These
forward-looking statements are made as of the date of this news
release and, except as required by law, the Company assumes no
obligation to update these forward-looking statements, or to update
the reasons why actual results differed from those projected in the
forward-looking statements.
Neither TSX Venture Exchange nor 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.
Contacts: Palladon Ventures Ltd. John W. Cutler 801.521.5252
604.681.4760 (FAX) info@palladonventures.com
www.palladonventures.com
Palladon Ventures Ltd. (TSXV:PLL)
과거 데이터 주식 차트
부터 9월(9) 2024 으로 10월(10) 2024
Palladon Ventures Ltd. (TSXV:PLL)
과거 데이터 주식 차트
부터 10월(10) 2023 으로 10월(10) 2024