25th Oct 2007 07:01
Aricom PLC25 October 2007 Press Release 25 October 2007 Aricom plc ("Aricom" or the "Company" and together with its subsidiaries the "Group") Wardell Armstrong review of Aricom's assets Aricom plc (AIM: TIO), the Anglo-Russian developer of mineral resources, todayannounces that Wardell Armstrong International ("WAI") has now completed itsMineral Expert's Report ("MER") on Aricom. The MER forms part of the prospectusfor Aricom's admission to the Official List and move to the Main Market whichhas now been approved by the UK Listing Authority. The full prospectus can bedownloaded from Aricom's website and the below is a short list of selectedhighlights: - Reserve and Resource estimates to JORC standards totalling 918mtonnes of oreAricom Group Resource Summary (in accordance with JORC Code 2004) Tonnes % Fe Contained Metal (Mt) (Mt)Measured 55.65 33.4 18.6Indicated 321.43 38.9 125.0Measured & Indicated 377.08 38.1 143.6 Inferred 540.9 28.0 151.7 - K&S o "The two deposits host a large reserve and resource base that will beoperational in 2010 and demonstrate highly positive economics. o ...given the considerable amount of work completed at Kuranakh over thelast 2 year period, WAI believes that Aricom should achieve the licencerequirements at Kimkan and Sutara." - Kuranakh o "Kuranakh is a medium sized titanomagnetite deposit which is at anadvanced stage of development with open pit mining due to commence imminently.From the site visit, it is clear that Aricom has demonstrated the ability tobring a Greenfield asset into operation. The project benefits from its resourcesbase and good access to infrastructure." o "The operation should begin to generate positive cash flows in thesecond quarter of 2008 when the first concentrate shipments are sold under theoff-take agreement with China National Gold. Once full production is reached, anet operating profit for the Kuranakh project (minus capex, taxation, etc.) ofaround US$6.0m per quarter, or US$10.0/t ore mined, can be expected." - Garinskoye o "Garinskoye represents a large magnetite ore deposit, which hasconsiderable exploration potential. The project is at an early stage ofdevelopment, but greatly benefits from extensive exploration work which hasalready been undertaken in the Soviet era. WAI consider that the explorationprogramme adopted by Aricom is appropriate in order to both substantiateprevious exploration drilling and improve confidence in resource categorisation." o "During 2009, it is planned to begin mining the high grade near surfaceore at Garinskoye. This will generate approximately US$33m profit during theyear and contribute towards the full scale production development of the mine." - Bolshoi Seym o "Previous metallurgical test work has shown that, as with Kuranakh, itis possible to produce a 62.5 per cent. Fe concentrate and an ilmeniteconcentrate with up to 49.9 per cent.TiO2. o WAI considers that this project is in the early stage of exploration.It is a large titanomagnetite iron ore deposit, which has considerable merit andtherefore potential, and as such justifies the exploration works which have beenproposed, both to confirm the potential resources of the deposit and improveconfidence levels in those resources that are present." The contents of this announcement have been approved for release by Owen Mihalopof Wardell Armstrong International. Owen Mihalop has consented to the inclusionof the material in the form and context in which it appears. Jay Hambro, Chief Executive of Aricom plc, commented: "Wardell Armstrong has now carried out an independent review of the full groupof Aricom's projects and summarises it as a 'sound portfolio of mineraldeposits' that could 'based upon performance to date and the current status ofeach of the projects, be developed into operating mines generating good returnsfor the investors'. The report further demonstrates the value inherent to the Aricom asset portfolioand I believe it shows a quality portfolio of projects, with near term cashflow,feasibility stage, development, and exploration stage projects ensuringcontinued growth through the next 4 to 5 years. Aricom is pleased to have reached this position where our scope for growththrough our well balanced portfolio has been independently audited, and we lookforward to benefiting from the great competitive advantage we have with regardsto our location on China's doorstep. With the combination of this suite ofassets and over half a billion dollars in cash, I believe we are well placed forthe future." - Ends - For further information:Aricom plcJay Hambro, Chief Executive Tel: +44 (0) 20 7201 8939 www.aricom.plc.uk JPMorgan CazenoveIan Hannam / Patrick Magee Tel: +44 (0) 20 7155 2828 www.jpmorgancazenove.com Canaccord AdamsRobert Finlay / Chris Bowman Tel: +44 (0) 20 7050 6500 www.canaccordadams.comAbchurchCharlie Jack / George Parker Tel: +44 (0) 20 7398 7700 www.abchurch-group.com This announcement is an advertisement and not a prospectus and investors shouldnot subscribe for or purchase any securities referred to in this announcementexcept on the basis of information in the prospectus which has been published bythe Company (the "Prospectus") in connection with the admission of its OrdinaryShares and Warrants to the Official List and to trading on the Main Market ("Admission"). Copies of the Prospectus are available from the offices of Aricomplc 10-11 Grosvenor Place, London, SW1X 7HH. The Company is not offering any new Ordinary Shares, Warrants or othersecurities in connection with Admission. This document does not constitute anoffer to sell, or the solicitation of an offer to subscribe for or buy OrdinaryShares, Warrants or other securities in any jurisdiction. The contents of this announcement have been prepared by and are the soleresponsibility of the Company. JPMorgan Cazenove and Canaccord which areauthorised and regulated in the United Kingdom by the FSA have been appointed asJoint Financial Advisers and Joint Sponsors to the Company. JPMorgan Cazenoveand Canaccord are advising the Company and no-one else in connection withAdmission and will not be responsible to anyone other than the Company forproviding the protections afforded to the clients of JPMorgan Cazenove orCanaccord or for affording advice in relation to Admission, the contents of thisannouncement or any transaction or arrangement referred to herein. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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