 | | 
 |   Thu Jun 19, 2008
Resource Finance & Investment Ltd: Industrial Minerals Provides Update on Oregon Heavy Mineral Sands Project
|
| | Resource Finance & Investment Limited ("RFI") symbol (OTC:RFIVF) is pleased to advise that its affiliate Industrial Minerals Corporation Ltd (ASX:IDM) announced in a recent release to the Australian Stock Exchange information which is summarised below.
The directors of Industrial Minerals Corporation Ltd (IDM:ASX) ("the Company") are pleased to provide an update on the Oregon Heavy Minerals Project ("Project"). In the Quarterly Activities Report for the period ended 31 March 2008 the Company advised it was engaged in the procurement of a senior debt and working capital facility ("Debt Facility") and had received an indicative term sheet from a leading financial institution. A component of the term sheet was the engagement, by the Company's advisor, of Behre Dolbear & Company Inc, ("BD") a leading minerals industry consulting firm, to conduct an independent preliminary due diligence on the Project. The scope of the phase one due diligence included a fatal flaws review covering most aspects of the project. The prospective lender was provided with the positive findings of Behre Dolbear's review and indicated to management a strong desire to proceed. Subsequently the prospective lender advised that they would not be proceeding with the provision of a Debt Facility. The decision to withdraw from discussions on the Debt Facility was not based on the Project's fundamentals but on factors internal to the proposed lender.
The Company is currently evaluating alternative project financing structures and is confident that an alternative project financing arrangement will be secured. This confidence is driven from the project economics which are extremely robust and demonstrate capital return in less than three years.
The Company has previously announced that it expected the wet plant commissioning late in the 4th quarter of 2008 and commencement of full production for February 2009. The directors expect these milestones to be delayed by approximately three months.
The Company recently committed to the purchase of long lead equipment and continues with its plans incorporating the revised schedule for project completion and production commencement.
Chromite Market
Generally, the chromite market remains stable to firm with logistic and power issues in South Africa being a predominant factor. Current oil prices have impacted the cost of production and transport and will add further to the end price of delivered product. The Company expects market pricing to remain firm for the foreseeable future and has recently received Letters of Intent covering approximately 75% of its expected first year production. As the only potential North American producer of a high quality reliable supply of a specialty chromite coupled with at least three other valuable heavy minerals the Company's project is unique in today's environment.
Legal Notice Regarding Forward Looking Statement
This press release contains "forward looking statements" including forward looking statements as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934. Statements in this press release that are not purely historical are forward looking statements and include any statements regarding beliefs, expectation or intentions concerning the future. Forward looking statements in this press release include, but are not limited to statements regarding the Corporation's anticipation that the Mineral Claims will prove to be economically viable on a going forward basis, and the Company's anticipation that it can successfully raise the capital necessary to acquire and exploit the Mineral Claims, with or without an equity offering. It is important to note that the Corporation's actual outcomes may differ materially from those in forward-looking statements contained in this press release. Although the Company believes that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations and intentions will prove to be accurate. Readers should refer to the risks disclosures in the Company's public filings with the Securities and Exchange Commission.
North America:
Steven Blacklock, CFO
Tel: +1 503-803-7332
Fax: +1 503-241-6145
Email: info@resource-finance.com
or
Bermuda:
Sharmaine Berkeley
Tel: +1 441 295 8313
Fax: +1 441 292 1373 |
| |
| You can view the Previous News Releases item: Tue Jun 3, 2008, Industrial Minerals places orders for long lead time plant and equipment for the Oregon mineral sands project.
You can return to the main News Releases page, or press the Back button on your browser.
|
|
 |
|
