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Fairmont Exclusivity Period for Grabasa Asset Purchase $FMR.ca

Posted by AGORACOM-JC at 1:30 PM on Tuesday, July 19th, 2016

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  • Fairmont intends to make the final payment on the Grabasa purchase of 2,550,000 Euros to the Spanish courts before the expiry of the exclusivity period on July 25, 2016
  • Transaction itself will remain valid and does not expire after that date, but the courts and receivers will be able to discuss the assets of Granitos de Badajoz with other potential purchasers should Fairmont not complete the payment terms of the purchase

VANCOUVER, BRITISH COLUMBIA–(July 19, 2016) – Fairmont Resources Inc. (TSX VENTURE:FMR)(OTC:FRSSF)(FRANKFURT:F0O1) (“Fairmont”) Fairmont intends to make the final payment on the Grabasa purchase of 2,550,000 Euros to the Spanish courts before the expiry of the exclusivity period on July 25, 2016.

The Grabasa transaction purchase exclusivity period expires 90 days from April 26, 2016. The transaction itself will remain valid and does not expire after that date, but the courts and receivers will be able to discuss the assets of Granitos de Badajoz with other potential purchasers should Fairmont not complete the payment terms of the purchase.

About Fairmont

Fairmont Resources Inc. is a rapidly growing industrial mineral and dimensional stone company trading on the Toronto Venture Exchange symbol FMR.

Fairmont’s Quebec properties cover numerous occurrences of high-grade titaniferous magnetite with vanadium, with the Buttercup property having a permit to quarry dense aggregate. Where these occurrences have been tested they have display exceptional uniformity with respect to grade. Fairmont also controls three quartz/quartzite properties, with the Forestville property having independent end user testing confirming the suitability of quartzite from Forestville for Ferro Silicon production. Fairmont is also in the process of acquiring the assets of Granitos de Badajoz (GRABASA) in Spain which includes 23 quarries and a 40,000 square metre granite finishing facility that has produced finished granite installed across Europe.

Forward-Looking Statements

Information set forth in this news release contains forward-looking statements that are based on assumptions as of the date of this news release. These statements reflect management’s current estimates, beliefs, intentions and expectations. They are not guarantees of future performance. Fairmont cautions that all forward looking statements are inherently uncertain and that actual performance may be affected by a number of material factors, many of which are beyond Fairmont’s control. Such factors include, among other things: risks and uncertainties relating to Fairmont’s exploration program of its mineral properties and Fairmont’s limited operating history. Accordingly, actual and future events, conditions and results may differ materially from the estimates, beliefs, intentions and expectations expressed or implied in the forward looking information. Except as required under applicable securities legislation, Fairmont undertakes no obligation to publicly update or revise forward-looking information. Except as required under applicable securities legislation, Fairmont undertakes no obligation to publicly update or revise forward-looking information.

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.

Michael A. Dehn
President and CEO
Fairmont Resources Inc.
647-477-2382
[email protected]
www.fairmontresources.ca

Doren Quinton
President
QIS Capital
250-377-1182
[email protected]
www.smallcaps.ca

Fairmont Completes 150,000 Euro Deposit for Grabasa Asset Purchase $FMR.ca

Posted by AGORACOM-JC at 1:05 PM on Thursday, June 23rd, 2016

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  • Deposit of 150,000 Euros paid by Fairmont to court in Spain with respect to Spanish Granite (Grabasa) assets acquisition
  • Discussions with potential lenders ongoing
  • Fairmont expects signed letter of intent for debt financing in the coming week
  • US market for dimensional stone, which includes granite and marble, was more than US$2.5 billion in 2014

VANCOUVER, BRITISH COLUMBIA–(June 23, 2016) – Fairmont Resources Inc. (TSX VENTURE:FMR)(OTC:FRSSF)(FRANKFURT:F0O1) (“Fairmont“) is pleased to announce that a deposit of 150,000 Euros was sent by Fairmont and received by the court in Spain with respect to the Granitos de Badajoz S.A. (“Grabasa”) assets acquisition. This is in addition to the 60,000 Euros deposit made on behalf of Fairmont Resources by Eureka Consulting, previously announced in the Fairmont news release of March 21, 2016.

Discussions with potential lenders for the remainder of the acquisition are ongoing. Fairmont expects to receive a signed letter of intent for debt financing in the coming week.

As first reported by Aggregate Business Europe in the article titled, “Dynamic Start to 2016 for European Construction Equipment Sales” (http://goo.gl/8XlXvH), it quotes the Committee for European Construction Equipment stating an “encouraging opening period of 2016 was driven by the robust recovery of the French market, the continuation of the recovery in Southern Europe and the stability of the Western European market as a whole” in construction equipment sales. Fairmont sees this as continued positive signs in European construction recovery as well as for future demand for construction and renovation material including granite.

In the Winter 2015-2016 Gilbane Construction Economics Market Conditions in Construction report for the US, it is reported that “2015 is a breakout year for nonresidential buildings construction spending, expected to finish at 17% growth. With expected growth of more than 13% in 2016, the three year period of 2014-2016 could reach historic growth.” Fairmont sees this as a positive sign for granite and marble demand in the US. The US market for dimensional stone, which includes granite and marble, was more than US$2.5 billion in 2014, with more than $2.0 billion being dominated by imported material that would be a target market for GRABASA.

Michael Dehn, President and CEO Of Fairmont Resources stated, “This is an exciting opportunity for Fairmont to acquire one of the premier granite producing assets in Europe. Fairmont management sees additional opportunities to expand sales into worldwide markets without the requirement of expensive upgrades or facility expansions. Once all of the necessary financing is in place, Fairmont plans to move rapidly into selling existing granite inventory and recommencing production for continuing sales.”

About Fairmont

Fairmont Resources Inc. is a rapidly growing industrial mineral and dimensional stone company trading on the Toronto Venture Exchange symbol FMR.

Fairmont’s Quebec properties cover numerous occurrences of high-grade titaniferous magnetite with vanadium, with the Buttercup property having a permit to quarry dense aggregate. Where these occurrences have been tested they have display exceptional uniformity with respect to grade. Fairmont also controls three quartz/quartzite properties, with the Forestville property having independent end user testing confirming the suitability of quartzite from Forestville for Ferro Silicon production. Fairmont is also in the process of acquiring the assets of Granitos de Badajoz (GRABASA) in Spain which includes 23 quarries and a 40,000 square metre granite finishing facility that has produced finished granite installed across Europe.

Forward-Looking Statements

Information set forth in this news release contains forward-looking statements that are based on assumptions as of the date of this news release. These statements reflect management’s current estimates, beliefs, intentions and expectations. They are not guarantees of future performance. Fairmont cautions that all forward looking statements are inherently uncertain and that actual performance may be affected by a number of material factors, many of which are beyond Fairmont’s control. Such factors include, among other things: risks and uncertainties relating to Fairmont’s exploration program of its mineral properties and Fairmont’s limited operating history. Accordingly, actual and future events, conditions and results may differ materially from the estimates, beliefs, intentions and expectations expressed or implied in the forward looking information. Except as required under applicable securities legislation, Fairmont undertakes no obligation to publicly update or revise forward-looking information. Except as required under applicable securities legislation, Fairmont undertakes no obligation to publicly update or revise forward-looking information.

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.

Michael A. Dehn
President and CEO
Fairmont Resources Inc.
Tel: 647-477-2382
[email protected]
www.fairmontresources.ca

Doren Quinton
President
QIS Capital
Tel: 250-377-1182
[email protected]
www.smallcaps.ca

Fairmont Resources acquires Grabasa in a bankruptcy fire sale. A Q&A with CEO Michael Dehn $FMR.ca

Posted by AGORACOM-JC at 5:00 PM on Monday, May 30th, 2016
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  • Recently announced it intended to acquire Grabasa, a Spanish granite producer, from a bankruptcy procedure. As this could really put the company on the map and generate cash flow that could be used to explore and develop other properties, we had a chat with CEO Michael Dehn to get some more details.

Fairmont Resources FMR Grabasa 3

Fairmont Resources (FMR.V) recently announced it intended to acquire Grabasa, a Spanish granite producer, from a bankruptcy procedure. As this could really put the company on the map and generate cash flow that could be used to explore and develop other properties, we had a chat with CEO Michael Dehn to get some more details.

  • How did you come across Grabasa?

We were originally referred to the Grabasa case through a former employee at Grabasa. As you know, geo’s like to talk rocks with each other and that’s how we learned about this opportunity and decided to investigate the potential of this company.

  • Can you elaborate on the structure of the deal?

Sure. The plan is to structure the acquisition through debt financing. We have several sources currently evaluating the deal at competitive interest rates, and it definitely is our ambition to fund 100% of the acquisition with debt. We would like to keep any potential dilution of our shares limited when we acquire this company.

Fairmont Resources FMR Grabasa 2

  • Investors can be quite wary about picking up assets from a bankruptcy procedure. Why didn’t Grabasa’s business plan work out, and why do you think you can do a better job?

Simply put, market conditions have changed. Grabasa operating for about 25 years producing as much as 250,000 square metres of granite annually. In the 5 years before declaring insolvency, they were averaging approximately 6 million euros (C$9M) in annual sales. As they began scaling up their business through debt financed plant and equipment upgrades, they were negatively impacted by the mortgage backed security crisis, declining European market demand, and tightening capital spending. They were forced to declare bankruptcy under these conditions.

It’s really not a case of us doing better, but being in a better position to put Grabasa back into operation. Labour costs in Spain have declined, the market demand is recovering, and we have a more diverse marketing strategy connected to our operations in Quebec.

By going through the Bankruptcy process, you essentially reset the business. And we are acquiring the asset at a very good price, so we are confident Grabasa will be a very profitable division of Fairmont.

  • What about the economics? What’s your plan for Grabasa’s mining licenses? Do you have any idea what kind of operating margin you could realize?

The mining licenses are intact and the operating plan is divided in different stages. Firstly, there is a considerable amount of finished and unfinished product in inventory which we can sell in the near-term. This allows us to finance the restart of the operations and re-open the major quarry. As we ramp up sales, we expect to re-open the second main quarry.

Margins will likely vary with market conditions and the range of product we are able to sell. For example, black granite sold in Asia will command a significant premium, coloured granite for commercial applications in Europe less so. Having said that, we have the expectation of realizing an average of about a 40% margin annually.

Fairmont Resources FMR Grabasa 1

  • Are you planning to pick up more licenses around the processing plant to become a dominant player?

Through this purchase, we will acquire 23 quarries. We will commission additional quarries as needed but hope to do these on a JV basis to better support the local economy by encouraging regional employment.

  • How about the environmental liabilities and reclamation costs? Will Fairmont be liable for historic mining operations?

Since this is granite – there really is no environmental issues. As with all mining, there is a reclamation cost which kicks in when mining ceases, but this will likely be several generations into the future, so that’s not really something we are worried about right now. We are looking forward to complete the transaction and to restart the granite mining operations as soon as possible.

Source: https://www.caesarsreport.com/blog/equitas-resources-has-started-a-drill-campaign-at-baldo/

CLOSE ALERT … Uragold Closes Up 35% To 5-Year High On Technology Breakthrough Announcement $UBR

Posted by AGORACOM at 7:19 AM on Wednesday, April 20th, 2016

BREAKING NEWS … $UBR UP 35% ON TECHNOLOGY BREAKTHROUGH
Uragold_new

  • Partner Confirms Technology Can Transform High Purity Quartz Into Silicon Metal In One Step
  • “We Look Forward To Advancing To The Pilot Stage Uragold”
  • “The First Step Towards The Company’s Objective To Produce A Silicon Product Of Solar Grade Purity”
  • Uragold Chairman & CEO “Today’s press release from PyroGenesis is another significant step in the dynamic testing process that commenced on March 29…”
  • Shares Up 35% To $0.205 On 2.2M Shares Traded

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