Avalon recently announced that a $750,000 pilot plant program has commenced on the Company’s Separation Rapids Lithium Project located near Kenora, Ontario. The 2015 pilot plant program will provide a trial of the new lithium minerals process flow sheet developed at the bench scale over the past year.
Avalon recently received a letter from NYSE MKT LLC dated July 30, 2015 which states that due to the Company’s recent low selling share price, it has been deemed to be not in compliance with the continued listing standards of the Exchange. The Company’s continued listing is contingent upon the Company effecting a share consolidation within a reasonable period of time or upon a sustained increase in its share price. The company goes “Beyond The Press Release†to discuss this matter further.
VANCOUVER, BRITISH COLUMBIA–(Aug. 19, 2015) – DuSolo Fertilizers Inc., (TSX VENTURE:DSF)(OTC PINK:ELGSF)(FRANKFURT:E6R) (“DuSolo” or “the Company”) is pleased to announce that its board of directors has appointed Eran Friedlander as Non-Executive Chairman and Darren Bowden as Chief Executive Officer.
“As DuSolo transitions from exploration to production, it is seeking to expand its management’s operational experience,” said Eran Friedlander, Chairman. “Darren Bowden has a wealth of operational experience and knowledge, and will be an asset to the Company as it increases its production profile.”
Darren Bowden, the Company’s new CEO said, “Having operated in many countries around the world, I am delighted to accept the role of CEO and look forward to working closely with Eran and the team to bring the Company’s operations to their full potential. I look forward to both optimizing the operations and delivering value for all of DuSolo’s stakeholders.”
In connection with these appointments, Mr. Bowden has agreed to act as an interim CEO for up to 12 months and Mr. Friedlander has agreed to consult as a strategic advisor to the CEO for a period of two years.
Bridge Loan Agreement
The Company is also pleased to announce that it has signed the definitive loan agreement with Ndovu Capital III B.V. (“Ndovu”) for C$750,000 (the “Bridge Loan”), as announced in the Company’s press release dated August 10, 2015. The Bridge Loan bears interest at 10% per annum, is repayable in three months, bears an establishment fee of 5%, and is subject to representations, warranties, covenants and negative covenants customary for a loan of this nature. The Company will draw down the Bridge Loan and use the proceeds for general working capital purposes. Ndovu is an affiliate of Tembo Capital Mining Fund LP and is the Company’s largest shareholder, with 15.43% of DuSolo’s issued and outstanding common shares. Mr. Peter Ruxton, a director of Ndovu, is a director of the Company and abstained from the approval of the Bridge Loan.
Board Committees
The Company’s board of directors confirms the appointments to the following standing committees of the board:
| Audit Committee: | David Farrell (Chair), Peter Ruxton, Michael Vint |
| Compensation Committee: | Peter Ruxton (Chair), David Farrell, Michael Vint |
| Corporate Governance and Nominating Committee: | David Farrell (Chair), Peter Ruxton, Darren Bowden |
ABOUT DUSOLO
DuSolo Fertilizers Inc. is focused on developing a fully integrated process to produce phosphate based fertilizers within the Cerrado region of Brazil as part of a nationwide effort, incentivized by the government, to increase supply of domestically sourced fertilizers and achieve agricultural self sufficiency.
The Company’s shares are publicly traded on the TSX Venture Exchange under the symbol DSF, on the OTC Pink Sheets under the symbol ELGSF and on Frankfurt Stock Exchange under the symbol E6R.
On behalf of DuSolo Fertilizers Inc.
Eran Friedlander, Chairman
Forward-looking statements
Certain information contained in this press release constitutes “forward-looking information”, within the meaning of Canadian legislation. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur”, “be achieved” or “has the potential to”. Forward looking statements contained in this press release may include statements regarding the future operating or financial performance of DuSolo which involve known and unknown risks and uncertainties which may not prove to be accurate. Actual results and outcomes may differ materially from what is expressed or forecasted in these forward-looking statements. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Among those factors which could cause actual results to differ materially are the following: market conditions and other risk factors listed from time to time in our reports filed with Canadian securities regulators on SEDAR at www.sedar.com. The forward-looking statements included in this press release are made as of the date of this press release and DuSolo disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities legislation.
Neither the TSX Venture Exchange Inc. nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange Inc.) accepts responsibility for the adequacy or accuracy of this press release.
DuSolo Fertilizers Inc.
(604) 331-9853(604) 331-9853
(604) 331-9853
(604) 331-9853
[email protected]
www.DuSolo.com
Montreal, Quebec / August 19 2015 – Uragold Bay Resources Inc. (“Uragold”) (TSX Venture: UBR) is pleased to announce that fieldwork on the Roncevaux quartz property located in the Matapedia Valley in the Gaspe region of Quebec has started for the purpose of achieving two objectives.
FIELDWORK TO CONFIRM RESOURCE IS CAPABLE OF FULFILLING POTENTIAL ORDER
Per the Company’s announcement on March 2, 2015, a major Silicon Metal Producer has expressed interest in purchasing between 20,000 to 50,000 tons annually of High Purity Lump Quartz material from our Roncevaux property, after our material successfully passed their rigorous testing protocols. This requires Uragold to validate if the historical estimates of 414,700 tons of High Purity Quartz; contained in the V1 vein structure calculated in 2003 (grading @ 99.20% of SiO2), will be sufficient to fulfil the potential order. (GM60610: Barrette, Jean-Paul. 2003. Rapport des travaux d’exploration miniere sur la veine de quartz pur. Projet Silice Roncevaux, Canton Roncevaux, Gaspesie), (press release December 16, 2014).
All information such as resources estimates and grades herewith presented is historical in nature and while relevant, the information was obtained before the implementation of National Instrument 43-101 and as such does not meet National Instrument 43-101 reporting standards. The historical estimate should not be relied upon until the Company can confirm them.
ANZAPLAN TO TEST FOR POTENTIAL HIGH VALUE APPLICATIONS, INCLUDING ULTRA HIGH PURITY QUARTZ SAND
Pursuant to our MOU announced April 13, 2015, a second objective of the program is to collect 150 kg of sample material from the V1 vein structure ANZAPLAN will then complete quartz processing and beneficiation tests to characterize the quartz potential for high value applications, including Ultra High Purity Quartz Sands. The leading consultancy and engineering company in high purity quartz project valuation, ANZAPLAN has a wide range of international clients in the mining, engineering, and production industries. The company’s’ renowned international reputation in the glass and ceramics industry has steadily extended into the high purity market sectors.
Dr. Marc Richer-LaFleche, Ph.D. (Geo) will be leading the Institut National de la Recherche et des Sciences (INRS, Eau Terre Environnement) team retained by the Corporation to complete the program. The work will also allow the planning of a subsequent drilling program to be complete before the end of the year.
INRS is a university dedicated to fundamental and applied research, graduate studies and the training of researchers in its four research Centres in Quebec City, Laval, Montreal and Varennes. Part of the Universite du Quebec network, INRS University ranks first in Canada in terms of research intensity. Located in Quebec City, the INRS Eau Terre Environnement Research Centre is a world class research facility that brings together 40 professors, over 200 graduate and postgraduate students, and about 20 postdoctoral researchers.
Dr. Marc Richer-LaFleche, Ph.D., is professor of geology and research scientist at INRS. He is a renowned geologist with special interest in clays and silica. Dr. Richer-LaFleche completed his doctoral studies with Centre National de la Recherche Scientifique of France (CNRS) and at Universite de Montpellier II. He also completed his post-graduate with the National Geological Commission of Canada.
Private Placement
Uragold announces its intention to proceed with a new non-brokered private placement of 6,619,000 units (“Unit”) at $0.05 per Unit for gross proceeds of $330,950. Insider participation in this placement could accounts up to 49% of the total amount subscribed. The net proceeds from the Private Placement will be used for general corporate expenditures and to enhance the Company’s balance sheet.
Each Unit is comprised of one (1) common share and one (1) common share purchase warrant (“Warrant”) of the Company. Each Warrant will entitle the holder thereof to purchase one common share of the capital stock of the Company at an exercise price of $ 0.07 during a period of 36 months from the date of closing of the placement. Each share issued pursuant to the placement will have a mandatory four (4) month holding period from the date of closing of the placement. The placement is subject to standard regulatory approvals.
Shares For Services Program
In accordance with the agreement between Uragold and AGORACOM (see Uragold press release July 18, 2014) Uragold Board has approved the issuance of 565,000 common shares at a deemed price of $0.05 per share for the outstanding debt of $28,250 for services rendered during the period from January 16, 2015 ending July 15, 2015.
Mr Levasseur stated, “With this additional private placement, insiders are continuing the demonstration of their belief that 2015 will be an exciting year for Uragold as we continue to develop our exciting high purity quartz projects.”
About Uragold– Quebec Quartz
Uragold – Quebec Quartz is the largest holder of distinct High Purity Quartz properties in Quebec, with over 3,500 Ha under claims. Despite the abundance of quartz, very few deposits are suitable for high purity applications. High Purity Quartz supplies are tightening, prices are rising, exponential growth forecasted. Quartz from the Roncevaux property successfully passed rigorous testing protocols of a major silicon metal producer confirming that our material is highly suited for their silicon metal production.
In addition to becoming a supplier of lump quartz for silicon metal production, Quebec Quartz’s objective is to transform its High Purity Quartz into Ultra High Purity Quartz Sands to generate significantly greater profits and become a leading supplier of Ultra High Purity Quartz.
About Uragold
Uragold Bay Resources is a TSX-V listed Gold and High Purity Quartz exploration junior focused on generating free cash flow from mining operations. Our business model is centered on developing mining projects suited for smaller-scale start-up and that could potentially generate high yield returns. Uragold will reach these goals by developing Quebec’s first paleoplacer mine in 50 years, the Beauce Placer Project and, in partnership with Golden Hope Mines, the Bellechasse-Timmins Gold Deposit.
Neither the 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.
This news release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of any of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or the securities laws of any state of the United States and may not be offered or sold within the United States or to, or for the account or the benefit of, U.S. persons (as defined in Regulation S un der the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable state securities laws or pursuant to an exemption from such registration requirements.
For further information contact
Bernard J. Tourillon, Chairman and CEO
Patrick Levasseur, President and COO
Tel: (514) 846-3271(514) 846-3271
(514) 846-3271
(514) 846-3271
www.uragold.com
Oman Economic Review – Opportunities/challenges in Oman’s construction; Tourism growth prospects
Photo Credit:Reuters/Carlos Jasso
On the face of it, Oman’s construction industry has been adept at negotiating a weak oil price. But it is going through a steep learning curve where there is no dearth of new challenges such as payment delays and shortage of workers. A. Harikumar examines if the sector is getting equipped to convert such imponderables into new opportunities for growth in the long run
When oil prices fell from around $110 per barrel in June, 2014 to almost half by the end of the year, a few sections of Oman’s construction industry had raised apprehensions about its impact on the country’s economy, leading to delays and cuts in major infrastructure projects in the future, if the prices failed to rebound.
But despite the fact that crude prices are not showing any signs of recovery even after the first half of 2015, the construction sector in the Sultanate is still on a sound footing. Key infrastructure projects are not witnessing any major cuts or delays, thanks to the government’s resolve to keep on funding them. There has not been any major lay-off of workers in the sector; and interestingly enough, new opportunities are also arising mainly in the tourism sector which is developing fast in Oman. The continued capacity building in this vital sector has brought about more opportunities for contracting companies, balancing losses, if any, from other sectors. Many new tourism projects are coming up in government and private sectors, as the government is encouraging development of tourism sector to diversify the economy.
However, this does not mean that the sector is fully equipped to handle crises and exploit emerging opportunities. Although the sector which employs over 700,000 people (accounting for more than 18 percent of Oman’s population) has been able to fend off the ill effects of falling oil prices to a great extent, the pace of growth could not be maintained in the near future because of some other reasons, which some major contracting firm attribute to the inherent weakness in the system.
For instance, Galfar Contracting, the biggest Omani contracting company, recently faced one such challenge; i.e. variations in project and differences of opinion between the client and the contractor on the charges for it. There are also complaints about inordinate delays in getting actual orders to start work, even after companies win bids. Most importantly, contracting companies in Oman find it very difficult to get the required workforce and find that Omanisation targets are unachievable.
It will be ominous for Oman’s economy, if its construction industry which had recorded an average growth rate of 5.5 per cent in the past five years and contributed to the national economy RO1.654bn -around five per cent of the GDP by 2013-gets bogged down because of such issues.
On the positive side, the government of Oman is giving much importance to the development of construction sector, as evident from the fact that the Sultanate’s latest five-year plan has earmarked an annual allocation of RO2.5bn for the sector, of which 50 per cent goes for infrastructure development. Independent agencies like MEED, which track projects in the region, put the value of new contracts that are being placed in Oman in 2015 at $15bn which will ensure continuity of growth.
However, there are many issues when it comes to the implementation stage. Many in the industry feel that if the authorities fail to remove hurdles in the execution stages, the industry will not be able to realise the full potential of the government’s initiatives.
While reviewing the situation in the construction sector in Oman and suggesting solutions, industry leaders feel that if oil prices fail to rebound by the end of this year, it will adversely affect the budgets for major projects. Many have started preparing for such an eventuality.
Impact of falling oil prices
Commenting on the present state of affairs, Oman Society of Contractors (OSC) CEO, Shahswar Al Balushi says, “The impact of oil price fall on the construction sector in Oman has been minimal till now. There has not been any drastic change in major ongoing projects, including those in the infrastructure and the tourism sectors; and there is steady progress at present. This is as a result of the prudent fiscal management of the government which has ensured growth. Crucial projects like Duqum SEZ, Oman National Railway Project, development of major airports in Oman etc which are vital for the diversification of the economy are on schedule. To sum up, at present, there is no concern about ongoing projects and no major projects have been cancelled.”
He adds, “Oman government has the experience in handling such situations. We have an aggressive approach on development in certain areas; but not so aggressive that it could go out of control.” But it is unlikely that the present situation will continue to be so for the contracting industry even if oil prices remain flat in the next year.
Looking at the future prospects, Shahswar comments, “If oil prices continue at the current level in the next year, I foresee a prioritisation of projects. If the attempts at diversifying the economy to non-oil sectors like tourism, where lots of construction is required, hit the target, there will be a level of balance. But having said that, the major player in tourism in Oman is Omran, which is a government sector company, and so there is again the possibility for prioritisation in that area of business also. Hence, we need to encourage private investment in tourism. If the price drops below the present level, then I would see more efforts from the government to stabilise the economy and make it sustainable that could mean heavy cuts in expenditure and in projects. The logic of the government action will be to create a balance in the economy so as to continue the progress. There might also arise a need to borrow money to implement important projects. Therefore, it will be prudent for the government to facilitate private investment. This can be achieved through reducing redtapism and simplifying approvals and procedures,” he avers.
Opportunities and challenges
However, some of the major consultants feel that certain areas in the sector have already started feeling the impact of oil price fall.
Ayman Saidi, director of infrastructure division, KEO Oman says that although some segments have been affected, Oman’s emphasis on developing tourism is leading to the implementation of more tourism-related projects. “Our initiative to diversify clients is a response to the fall in oil prices. Oil price fall impacts annual budget of the government, which in turn impacts all ministries, municipalities etc. We have noticed that some projects have been put on hold and some have been delayed, slowed down or cancelled altogether”.
He adds, “I see the fall in oil prices as an opportunity rather than a threat for Oman. Unlike other countries in the region, Oman is not completely dependent on oil and its diverse topography extending from Salalah to Musandam offers great potential for the development of tourism projects. There is a shortage of high-quality hotels in the country, especially during the peak seasons. There are only a few hotels on the beachside; therefore, more hotel projects need to be developed in that area.” He adds that the number of projects in tourism sector in Oman including three, four and five star facilities has gone up in recent years.”
According to Lorenzo Nicolai, regional manager, Renardet, one of the top multi-disciplinary consultants in the infrastructure sector in Oman, the falling oil price is affecting the sector in the sense that it now takes a longer time for projects to be awarded. “However, new projects are being announced,” he adds. “It is not known if lack of funds or other factors are leading to the slowing down in awarding projects. Either way, this is definitely affecting us.”
BMI Research in its latest report released to the media has revised growth forecast for Oman’s construction industry in 2015 from 5.5 per cent to 4.5 per cent in the light of falling oil prices and its impact on Oman’s economy. According to them, the weaker crude prices will have a moderate impact on infrastructure investment in Oman. They also said they would further revise the forecast if crude oil price continue to remain low over a sustained period of time.
However, Alpen Capital, in its report on GCC construction industry released to the media recently, expects the construction sector in Oman to remain robust. It has noted significant activities in the infrastructure and tourism sectors and in private and public commercial building construction. The report feels that the rising population and fast growing middle class will drive construction activities in the housing sector. It also notes that the diversification plans of the government will help the growth of construction sector.
Growth prospects in tourism sector
On the impact of oil price fall on projects in the tourism sector, Eng Ali bin Nasser al Rasbi, acting CEO of Omran, a government sector company which owns major projects and is currently implementing an ambitious expansion plan says, “In terms of Omran‘s tourism developments and investments, no projects have been put on hold. Investing in hospitality and mixed-use developments today makes good business sense. Investments lay solid foundations for a stronger travel and tourism sector, and thus, an increasingly diversified and resilient economy in the coming years. Building capacity and capability of the sector is vital in order to accommodate a growing number of visitors arriving on our shores every year and ensuring that they will keep returning in the years to come”.
According to him, the contribution made by the travel and tourism sector to the national economy has been growing year-on-year, with a 23.8 per cent growth in visitor numbers over the last five years. This translates into increased inbound revenues for the economy, new job opportunities and greater levels of participation by the SMEs to support the sector. He adds, “At Omran, we are working hard to build capability and capacity within the sector in order to harness the Sultanate’s great potential as an international destination of choice. Investment in this sector is vital for a sustainable future for the nation.”
As a worldwide phenomenon, when oil prices drop, the currencies of non-oil producing countries appreciate as do disposable incomes, leading to an increase in international travel. If Oman can continue to position itself as an attractive destination for international travellers, it will be able to capitalise on the surge of global tourism during these times. This way, revenue changes caused by fluctuating oil prices can be somewhat offset by increased tourism activity. This highlights the vital role that travel and tourism plays in supporting a sustainable and diversified economy of the future.
Payment delays and variation in projects
Aside from oil price fall, there are some long-lasting challenges confronting the sector such as payment delays and shortage of workers. Shahswar Al Balushi has been more upfront about these issues, “Many contracting companies are not paid on time. However that is not an issue related to oil price. Funds for ongoing projects have already been allocated and current issues on the payment front are related to the clients’ willingness to pay on time and in accordance with the terms of the agreement. There are also issues related to clients’ requests for variations in the project and their readiness to account for the variations in the budget. I think one of the issues that government needs to look into is restricting the clients (in many cases government agencies) from making substantial amount of variations in projects which result in a heavy bill, not accounted for in the budgetary framework.”
“Payments of even very big contracting companies are delayed for months and even years. Arrears of some companies run to the tune of around 30 per cent of their turnover. These companies are finding it very tough to pay sub-contractors, vendors etc. Their cash flow has been blocked. Projects in Oman are allocated through different tender boards. But companies that win, get actual orders after months or years. In the meantime, they might have made advance payments for mobilisation and other things. If work starts only after months or even years, it will block resources of contracting companies. This needs to be resolved. We need to regulate and refine the sector and get rid of hidden trade. Then only will we be able to provide quality and implement efficient and cost-effective solutions within the country and abroad, making the industry highly competitive,” concludes Shahswar.
According to a section of contractors, time constraint is also one of the biggest challenges faced by contractors here. Quality could be compromised when clients make demands to complete projects in a time frame that is not feasible. Contractors have to be given a proper time frame for execution, especially in the case of mega projects.
Omanisation and talented workers
Contractors across the spectrum in Oman are unanimous in their opinion that there is a dearth of talent in Oman. “Availability of workers at different levels is still a major problem facing the construction sector in Oman which employs around 700, 000 people currently”, agrees Shahswar. The total number of Omanis working in the sector is 56,000, less than nine percent of the total work force. The Omanisation target set by the Ministry of Manpower for the sector is 30 per cent, which means 210,000 Omanis should have been employed in the sector. But we don’t have that many Omanis who are willing to work in the sector; nor those who are equipped with the skillsets relevant for the sector. Considering these facts, we reach a conclusion that the current Omanisation target is not realistic.”
“Our request is to fix a realistic Omanisation target that the construction sector can actually achieve,” says Shahswar. “We are talking with the government to bring the target down to 12 per cent in 2016. If possible, it can be increased to 15 per cent during the ninth five-year plan. Response from job seekers, higher education graduates and the industry need to be used as an index to determine whether to maintain or increase the Omanisation per cent in any particular year, instead of increasing the target for the sake of numbers. There should be a concerted effort among the industry, government and labour unions to develop the workforce required by the sector; and in fact, I believe the labour union should ensure the local work force are properly qualified and should take the responsibility of addressing the issue of non-performing local workforce. Of the total workforce employed by the sector, the majority are construction workers who occupy the lower strata of industry like plumbers, electricians, mechanics, brick layers, painters etc. They are highly skilled individuals.” He is of the opinion that we need to develop multi-skilled construction workers who are capable of undertaking multiple tasks at the site such as painting, plumbing, tiling, electrical work etc. This will help the industry to streamline the workforce and manage them better. This need to be applied to expatriates also which will help to reduce their number. He adds, “Employing multi-skilled workers categorised as construction workers permitted to perform multiple tasks at sites will end the legal issues arising from workers performing duties across sections- like a plumber lending a helping hand to complete paining works, which is not allowed at present. This is how construction industry performs all over the world.”
Shahswar further added that Omanisation targets should be rationalised and implemented across the board in the construction sector. “As per the statistics of Ministry of Commerce and Industry, 100,000 companies are registered as construction companies in Oman. Of this 6000 are Grade 1 and above, and they employ 53, 000 Omanis, while remaining 94,000 companies employ just 3, 000 Omanis. If Omanisation is 12 percent and is implemented by all without exception, 94,000 companies will have to employee at least one Omani which will create thousands of job opportunities for Omani youth,” he adds.
Looking ahead
Meanwhile, experts point out that construction sector in Oman needs to make use of the innovations that are happening in the industry across the world. At present, technologies and practices have not changed much here in the last couple of decades. Regulators need to approve modern technologies and practices so that contractors could make use of it. This will help to streamline work and improve the profitability of the industry.
The feeling across the construction and contracting sector in Oman is that the sector is capable for contributing to the growth of Oman’s economy in a better way, if the problems that trouble the industry are solved. In fast developing economies like India and China, the growth rate of construction sector is around 10 percent. Oman is also in a developing stage and the current growth rate of 5.5 percent can go up significantly. However, if proper corrective steps are not taken, the construction sector may find it difficult to sustain even the present growth rate.
The fundamental significance of the construction sector in developing economies like Oman lies in its role in employment creation, capital formation and its aggregate spillover effects. As economies develop, construction sector spillovers accrue to propel productivity in other sectors of the economy. If the sector grows more, it would provide more jobs to Omani youth directly and indirectly. That is what we need at this critical juncture.
BY BEING A DOMESTIC FERTILIZER PRODUCER, DUSOLO IS ABLE TO OFFER A PREMIUM PRODUCT AT A SIGNIFICANTLY LOWER COST
MANY NEAR TERM CATALYSTS EXPECTED
BRAZIL’S DOMESTIC FERTILIZER SUPPLY DOES NOT MEET CURRENT DEMANDS
FLAGSHIP ASSET LOCATED IN ONE OF THE WORLD’S LARGEST AGRICULTURAL REGIONS
STRONG DEMAND FOR DANF EXISTS IN THE REGION
Within a 500 km radius of DuSolo’s processing facility:
Toronto, Ontario–(August 17, 2015) – Avalon Rare Metals Inc. (TSX: AVL) (NYSE MKT: AVL) (“Avalon” or the “Company”) is pleased to announce that a $750,000 pilot plant program has commenced on the Company’s Separation Rapids Lithium Project (“Separation Rapids Project” or “the Project”) located near Kenora, Ontario. The 2015 pilot plant program will provide a trial of the new lithium minerals process flow sheet developed at the bench scale over the past year under the direction of SVP, Metallurgy and Technology Development, David Marsh. A total of 30 tonnes of crushed ore will be shipped to a laboratory in Germany for processing to produce a minimum of 1 tonne of pure lithium mineral (petalite) concentrate.
This petalite concentrate will be used for two purposes: 1) to provide product samples to potential customers in the glass—ceramics industry who have expressed interest in evaluating these samples and 2) to provide concentrate for additional process development toward producing a high purity lithium chemical product for use by customers in the lithium ion rechargeable battery manufacturing business. The lithium chemicals work will be done at the laboratories of the Saskatchewan Research Council (“SRC”) in Saskatoon. The entire program is expected to be completed over the next 6-8 months.
The Opportunity
The Separation Rapids Project hosts an exceptionally large deposit of the rare lithium mineral petalite, which is noted for its lack of contained impurities. For this reason, petalite has a long history of use in specialty glass-ceramic products that require raw materials with a high degree of purity. Demand for petalite in this application has been growing steadily, with users now looking for new long term sources of supply. Avalon re-activated the Project in 2013 after receiving a number of expressions of interest from glass-ceramic manufacturers. In 2014, the Company successfully re-established and improved upon its original process flowsheet at the bench scale to produce high purity petalite concentrate containing an average of 4.2% lithium oxide and less than 0.01% iron oxide (a glass contaminant). Small samples of this material were subsequently analyzed and approved for further evaluation by a number of glass-ceramic end-users, leading to the decision to proceed with a larger scale pilot plant trial in 2015.
High purities have also been increasingly required for lithium chemicals used in the manufacture of lithium ion batteries. Accordingly, the Company is now investigating how its high purity mineral can be used to make ultra-high purity lithium chemicals relatively inexpensively compared to other existing alternative lithium source materials. Laboratory test work performed earlier this year at SRC provided encouraging results with a battery-grade lithium carbonate (>99.5% pure) being produced using proven leaching and precipitation technologies. Further, there is the potential to produce an enhanced grade product, achieving greater than 99.9% purity, with relatively few additional impurity removal steps. The potential for production of high grade lithium hydroxide was also demonstrated during this work.
The opportunity now exists for Avalon to uniquely position itself as a long term supplier of both high purity lithium minerals to the glass ceramics market and lithium chemicals to the rapidly growing lithium ion rechargeable battery market.
Project Background
The Separation Rapids Project is located approximately 70 km north of Kenora, Ontario in the traditional territory of the Wabaseemoong Independent Nations. The Project is 100% owned by the Company, with the deposit held under a 21 year Mining Lease. Avalon has worked on the Project intermittently since 1996, first completing a Pre-feasibility Study in 1999. Expenditures to date total approximately $6.2 million. In 2006, the Company extracted a 250 tonne bulk sample for new market development purposes. This material is being used for the current bulk sample test program, and earlier in 2015, Avalon shipped 2 tonnes of crushed ore to a potential customer in China for independent analysis and market evaluation. No feedback has been received to date.
Lithium Markets
Over the 5 year period ending in 2014, global consumption of lithium increased 80% while consumption of lithium for battery applications (the largest single market segment) grew by 166%, according to independent industrial minerals market analyst, Roskill Information Services.
Growing demand for rechargeable batteries in electric vehicles and home energy storage is expected to result in continued growth in consumption of lithium which is estimated by industry analyst Stormcrow Capital to reach 410,000 tonnes of lithium carbonate equivalent per year in 2025. This translates into an impressive compounded annual growth rate of a 7.8%. In their May 2015 Industry Report, Stormcrow further predicts that a supply deficit will emerge in the market as existing producers struggle to meet the rapidly growing demand.
Avalon has commissioned a market study to gain a better understanding of how it can use its unique high purity petalite resource to best serve the rapidly evolving market in energy storage technology. This study will be completed during the fourth quarter of 2015.
Future Plans
Avalon is also preparing for a large scale pilot plant trial involving the processing of over 5,000 tonnes of ore to produce several hundred tonnes of petalite concentrate for full scale production trials by prospective customers in the glass-ceramics industry. Some of the petalite concentrate produced would also be utilized for a pilot plant trial of the lithium chemical production process to be designed over the next 12 months. The lithium chemicals produced from this trial would also be used for market development purposes.
To complete the bulk sampling program Avalon will need to rehabilitate its 2003 access road to the site. Avalon has applied for the necessary work permit and expects to complete this work in September 2015. The timing for the bulk sampling program is still to be finalized and is subject to arranging necessary financing. Avalon is also looking at potential sites for establishing future production facilities in the Kenora area, including at the Separation Rapids Project site itself.
The current pilot plant program will provide the Company with the engineering and design information needed to prepare an updated Pre-feasibility Study in 2016.
The technical information included in this news release has been reviewed and approved by the Company’s Senior Vice President Metallurgy and Technology Development, Mr. David Marsh, FAusIMM (CP), who is a Qualified Person under NI 43-101.
About Avalon Rare Metals Inc.
Avalon Rare Metals Inc. is a mineral development company focused on rare metal deposits in Canada, with three advanced stage projects. Its 100%-owned Nechalacho Deposit, Thor Lake, NWT is exceptional in its large size and enrichment in the scarce “heavy” rare earth elements, key to enabling advances in clean technology and other growing high-tech applications. Avalon is also advancing its Separation Rapids Lithium Project, Kenora, ON and its East Kemptville Tin-Indium Project, Yarmouth, NS. Social responsibility and environmental stewardship are corporate cornerstones.
For questions or feedback, please email the Company at [email protected], or phone Don Bubar, President & CEO, at 416-364-4938416-364-4938
416-364-4938
416-364-4938 .
Cautionary Statement
This news release contains “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements regarding the commencement and completion of its work programs, that the 2015 pilot plant program will provide a trial of the new lithium minerals process flow sheet, that a total of 30 tonnes of crushed ore will be shipped to a laboratory in Germany for processing, that the petalite concentrate will be used for two purposes, that the lithium chemicals work will be done at the laboratories of SRC, that the entire program is expected to be completed over the next 6-8 months, that there is the potential to produce an enhanced grade product achieving greater than 99.9% purity with relatively few additional impurity removal steps, that growing demand for rechargeable batteries in electric vehicles and home energy storage is expected to result in continued growth in consumption of lithium, that the market study will be completed during the fourth quarter of 2015, that some of the petalite concentrate produced would also be utilized for a pilot plant trial of the lithium chemical production process to be designed over the next 12 months, that the lithium chemicals produced from this trial would also be used for market development purposes, that to complete the bulk sampling program Avalon will need to rehabilitate its 2003 access road to the site and that the current pilot plant program will provide the Company with the engineering and design information needed to prepare an updated Pre-feasibility Study, in 2016. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as “potential”, “scheduled”, “anticipates”, “continues”, “expects” or “does not expect”, “is expected”, “scheduled”, “targeted”, “planned”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be” or “will not be” taken, reached or result, “will occur” or “be achieved”. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Avalon to be materially different from those expressed or implied by such forward-looking statements. Forward-looking statements are based on assumptions management believes to be reasonable at the time such statements are made. Although Avalon has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. Factors that may cause actual results to differ materially from expected results described in forward-looking statements include, but are not limited to market conditions, the possibility of cost overruns or unanticipated costs and expenses, and unanticipated results from the work programs, as well as those risk factors set out in the Company’s current Annual Information Form, Management’s Discussion and Analysis and other disclosure documents available under the Company’s profile at www.SEDAR.com. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Such forward-looking statements have been provided for the purpose of assisting investors in understanding the Company’s plans and objectives and may not be appropriate for other purposes. Accordingly, readers should not place undue reliance on forward-looking statements. Avalon does not undertake to update any forward-looking statements that are contained herein, except in accordance with applicable securities laws.
VANCOUVER, Aug. 14, 2015 /CNW/ – Garibaldi Resources Corp. (TSX.V: GGI) (the “Company” or “Garibaldi”) is pleased to report that seven RC holes have been completed by Layne Drilling at the Company’s 100%-owned La Patilla Gold Property in Sinaloa State, Mexico. Assays are pending, and results will guide the next phase of exploration at this property where a shallow high-grade zone was discovered last year (10.4 g/t Au over 8.5 meters in LP-14).
Five of the seven holes targeted the La Patilla vein system, to test for continuity of high-grade mineralization along strike and down dip in the vein area as cut in several holes in 2014, while two holes were successfully completed at the adjacent Murcielago breccia.
Meanwhile, in advance of delivering stockpiled material from the vein system to the nearby Gainey Capital Corp. mill, Garibaldi has received highly encouraging metallurgical results with a recovery rate of 95% for a flotation test carried out by the Servicio Geologico Mexico (Mexican Geological Survey) in Chihuahua City.
The analyzed head grade for the sample (7.9 kg) was 17.7 g/t Au. The sample was taken from surface exposures in the La Patilla vein system where previous drilling reported high-grade gold values. Garibaldi cautions that the head grade is not necessarily representative of mineralization at La Patilla in general or, specifically, within the zones, structures or geological features that were sampled for the metallurgical testing.
Steve Regoci, Garibaldi President and CEO, commented: “The high gold recovery rate from the metallurgical work helps confirm that the mineralized material from the La Patilla veins is very amenable to the flotation system used at Gainey’s processing center. We’re continuing preparation work to advance this important part of the project at La Patilla.
“We are active on several fronts and we look forward to providing shareholders with additional updates on developments at our key projects in Mexico and British Columbia over the next few weeks.”
British Columbia Update – Grizzly Project
Crews are mobilizing for a fresh round of surface exploration, commencing in the next few days, that will determine final drill targets at the 270 sq. km Grizzly Project in northwest B.C.’s prolific Sheslay district.
Crews will be focusing on the highly promising Grizzly Central area as well as the newly-acquired Golden Bear claims, featuring an historical high-grade gold showing, adjoining the Grizzly to the south.
“Indeed this will be a busy and exciting summer at the Grizzly as productive discussions with all stakeholders concerning this emerging world class district are giving us great encouragement,” stated Regoci.
Qualified Person
Dr. Craig Gibson, Certified Professional Geologist and a director of Garibaldi, is a non-arms-length Qualified Person for the Company’s Mexico projects and the direct manager of the technical programs operated under contract by Prospeccion Y Desarrollo Minero del Norte (ProDeMin). Dr. Gibson has reviewed this news release and approved the contents thereof.
About Garibaldi
Garibaldi Resources Corp. is an active Canadian-based junior exploration company focused on creating shareholder value through discoveries and strategic development of its assets in some of the most prolific mining regions in Mexico and British Columbia.
We seek safe harbor.
Per: “Steve Regoci”
Steve Regoci, President
Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or the accuracy of this release.
SOURCE Garibaldi Resources Corp.
GARIBALDI RESOURCES CORP., 1150 – 409 Granville Street, Vancouver, BC V6C 1T2, Telephone: (604) 488-8851(604) 488-8851
(604) 488-8851
(604) 488-8851, Website: GaribaldiResources.comCopyright CNW Group 2015
Toronto, ON — Avalon Rare Metals Inc. (TSX and NYSE MKT: AVL) (the “Companyâ€) has received a letter from NYSE MKT LLC (“NYSE MKT” or the “Exchange”) dated July 30, 2015 which states that due to the Company’s recent low selling share price, it has been deemed to be not in compliance with the continued listing standards of the Exchange. Pursuant to Section 1003(f)(v) of the Exchange’s Company Guide, the Company’s continued listing is contingent upon the Company effecting a share consolidation within a reasonable period of time or upon a sustained increase in its share price. A potential share consolidation, if required, will need to be approved by the Company’s shareholders at the Company’s next annual general meeting currently planned for February, 2016.
About Avalon Rare Metals Inc.
Avalon Rare Metals Inc. is a mineral development company focused on rare metal deposits in Canada, with three advanced stage projects. Its 100%-owned Nechalacho Deposit, Thor Lake, NWT is exceptional in its large size and enrichment in the scarce “heavy†rare earth elements, key to enabling advances in clean technology and other growing high-tech applications. Avalon is also advancing its Separation Rapids Lithium Minerals Project, Kenora, ON and its East Kemptville Tin-Indium Project, Yarmouth, NS. Social responsibility and environmental stewardship are corporate cornerstones.
For questions and feedback, please e-mail the Company at [email protected], or phone Don Bubar, President & CEO at 416-364-4938.
Cautionary Statement
This news release contains “forward-looking statements†within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements regarding the continued listing of the Company’s securities. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as “potentialâ€, “scheduledâ€, “anticipatesâ€, “continuesâ€, “expects†or “does not expectâ€, “is expectedâ€, “scheduledâ€, “targetedâ€, “plannedâ€, or “believesâ€, or variations of such words and phrases or state that certain actions, events or results “mayâ€, “couldâ€, “wouldâ€, “might†or “will be†or “will not be†taken, reached or result, “will occur†or “be achievedâ€. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Avalon to be materially different from those expressed or implied by such forward-looking statements. Forward-looking statements are based on assumptions management believes to be reasonable at the time such statements are made. Although Avalon has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. Factors that may cause actual results to differ materially from expected results described in forward-looking statements include, but are not limited to market conditions, as well as those risk factors set out in the Company’s current Annual Information Form, Management’s Discussion and Analysis and other disclosure documents available under the Company’s profile at www.SEDAR.com. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Such forward-looking statements have been provided for the purpose of assisting investors in understanding the Company’s plans and objectives and may not be appropriate for other purposes. Accordingly, readers should not place undue reliance on forward-looking statements. Avalon does not undertake to update any forward-looking statements that are contained herein, except in accordance with applicable securities laws.