Wednesday 9th May 2007
ACOJE NICKEL PROJECT - PHILIPPINES
EUROPEAN NICKEL PLC & DMCI INVEST INTO RUSINA
Rusina Mining Limited (ASX code: RML; AIM “RMLA”) is pleased to announce that
the Company has signed an agreement with AIM listed United Kingdom nickel
group European Nickel PLC (AIM “ENK”) to fund a heap leach trial and feasibility
study on Rusina’s Acoje deposit in the Philippines.
As a separate agreement, DMCI Holdings Inc (PSE : DMC) of the Philippines has
agreed to cement its partnership with Rusina by becoming the Philippine partner
in the Acoje Project, and formalising the arrangement for the investment into a
Ferro Nickel plant on Semirara Island.
Discussions with these parties have been ongoing for some time. Pricing for these
transactions have taken into account recent changes of the companies share
price.
European Nickel.
Under the Agreement, European Nickel will, subject to Rusina shareholder
approval, invest £1 million (5,882,352 shares at 17p [40c] with an attached option
at a strike price of 21p [50c] and a term of 2 years). The funds will be used for
drilling the nickel saprolite mineralisation at Acoje to JORC indicated resource
status. European Nickel has also been granted the right of first refusal to
underwrite any future share placement Rusina may contemplate over the next 3
years.
In addition European Nickel will fund a feasibility study for the heap leaching the
nickel laterites on Rusina’s Acoje property by spending up to US$10 million to earn
40 % of the nickel laterite property. European Nickel’s farm in does not apply to
the chromite or PGM / Ni sulphide portion of the property that will be separately
explored and developed by Rusina.
European Nickel and Rusina have agreed to grant each other first right of refusal
to acquire, explore, and develop all other Luzon Island based nickel laterite
projects in the Philippines on a 50:50 cost basis cementing a long term relationship
between the two companies.
The feasibility study is likely to take between two and three years and will include
a trial heap leaching operation to determine whether tropical laterite ores from
Acoje can be successfully heap leached. European Nickel is considered leaders
in the Industry on Heap Leach technology having successfully demonstrated the
process in their Caldag project in Turkey.
The agreement with European Nickel has secured the long term strategy on
nickel for Rusina shareholders. Should Heap leach be feasible on Acoje laterites
the low operating cost ($US 2.50/lb or $US 5500 / t Ni)1 with significantly lower
capital requirements than HPAL2 ensures that heap leach operations will remain
very profitable under all long term Nickel price projections currently being
forecast.
The Chromite and Platinum Group Metal (PGM) mineralisation, that is generally
confined to the eastern side of the Acoje property within the dunite zone, is not
included in the agreement with European Nickel. The chromite and PGM’s will
be retained by Rusina (80% equity) and its Philippine partners (20% equity). Rusina
has previously announced that it intends to drill the PGM mineralisation via cash
flow from direct shipping nickel laterite ore.
DMCI Holdings Inc
DMCI and Rusina have agreed that DMCI will invest subject to shareholder
approval, $US1.2 Million (3,658,537 shares at 40c AUD with an attached option at
a strike price of 50c AUD and a term of 2 years)
DMCI and Rusina have entered an agreement for DMCI to formally become the
Philippine partner in the entire Acoje Project. DMCI will initially pay $US 2.5 million
for a 10% interest in Acoje, with a first right of refusal on existing claim owners
(CRAU resources) 10% residual interest
In addition DMCI and Rusina have agreed to form a 60% (DMCI) 40% (Rusina)
Joint Venture Company which will comprise of;
1. Mining Joint Ventures, - all properties of DMCI and Rusina (excluding Acoje
and its surrounding EPA’s) will be vended into a yet to be formed
subsidiary. These will include Rusina’s and DMCI’s Mindanao Cu/Au
projects.
2. a Ferro Nickel smelter, - subject to feasibility, to be constructed on
Semirara Island, the site of DMCI’s wholly owned coal mine. Under the
agreement, Rusina will guarantee ore supply for 5 years. DMCI has also
agreed to carry Rusina’s equity contribution for the project construction
on their balance sheet.
This agreement with DMCI has secured the Medium term strategy on nickel for
Rusina shareholders. Rusina and DMCI are in a unique position to quickly develop
and bring into operation the above strategies to maximise shareholder value
during the current commodity cycle.
Direct Shipping Update
The Company announced during its last quarterly report that a trial shipment of
50,000 (wet) tonnes has been approved on April 24 2007. The Company is also
1 Ref The Nickel Sector Metal & Equity Review Fox-Davies CAPITAL
2 High Pressure Acid Leach – Capital Costs $US 20 / lb Ni
pleased to advise that the Environmental Clearance Certificate (ECC) for a 22.5
Ha starter pit was approved by the Environment Management Bureau on 8 May
2007. This permit now paves the way for ongoing direct shipping at Acoje subject
to conditions laid out in the ECC.
DMCI have mobilised equipment to Acoje to begin civil works and are well
advanced negotiating port facilities. The first shipment is still on schedule for the
third quarter this year.
With the proceeds of these two strategic transactions with European Nickel and
DMCI Holdings, combined with the imminent revenue from direct shipping nickel
ores, and no requirement to fund the Ferro-nickel smelter, Rusina is in a strong
position to drive the Company forward over the coming year
Mr Robert G M Gregory
CEO & Managing Director
Rusina Mining NL
Enquiries to:
Mr Mark Hanlon
Chief Financial Officer
+61 8 9226 1111
The information in this report that relates to Exploration Results, Mineral Resources or Ore Resources is based on
information compiled by Robert Seed (M.Sc, Grad Dip) who is a Member of The Australian Institute of Mining
and Metallurgy. Robert Seed has sufficient experience which is relevant to the style of mineralization and type of
deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as
defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and
Ore Reserves’. Robert Seed consents to the inclusion in the report of the matters on his information in the form
and context in which it appears”.
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