PERTH, Australia , May 1, 2014 /CNW/ - Elemental Minerals Ltd. (ASX, TSX: ELM) ("Elemental" or "the Company") is pleased to provide the following quarterly update on its
activities, including at its Sintoukola Potash Project located in the
Republic of Congo ("RoC").
Key Points:
-
Announced start of exploration program for Dougou
-
Announced revised strategy for Elemental
-
Cash Holding of A$11.5 million
-
Dingyi offer lapsed
Strategic Direction
Elemental management has developed a two pronged strategy which will
continue to advance the Kola project and also an aggressive follow up
exploration programme for the Dougou Prospect aimed at unlocking the
largely untested potential of the greater Sintoukola permit.
Resource Expansion Programme
The Company believes that the Congo Basin is a potash province that
could rival those found in Canada and Russia . Elemental has an
exploration permit covering a total of 1 408km2. Less than 15% of this area has been tested to date; only one borehole
(ED_01) has been drilled outside of the Kola Deposit. As previously
reported ED_01 intersected a very high grade potash seam referred to as
the HWS (Refer announcement on 4 September 2012 ).
During the second half of 2013 Elemental announced the acquisition of a
large historic database that includes geological and assay data for a
number of historic boreholes drilled at Dougou. This data is being used
in conjunction with Elemental's existing data to generate an
Exploration Target for the HWS at Dougou which will be announced during
May. Following which, the Company's planned exploration programme aims
to a substantially increase Elemental's potash resource.
Corporate
On 1 April 2014 Elemental announced that Michael Barton representing
Pala Investments ('Pala') and Robert Franklyn have resigned from the
Elemental Board. Michael resigned on the back of Harlequin, one of
Elemental's founding shareholders, having reached agreement with Pala
to acquire Pala's entire shareholding of 12.4% in Elemental. Harlequin
now own 19.42% of Elemental.
On 24 April 2014 , the Company announced the resignation of Mr John
Stalker as Non-Executive Director of Elemental Minerals Limited with
immediate effect. On the same day, Elemental appointed Leonard Math as
Non-Executive Director. Mr. Math graduated from Edith Cowan University
in 2003 with a Bachelor of Business majoring in Accounting and
Information Systems. He is a member of the Institute of Chartered
Accountants and the Australian Institute of Company Directors.
In 2005 he worked as an auditor at Deloitte before joining GDA Corporate
as Manager of Corporate Services. Mr. Math has extensive experience in
relation to public company responsibilities including ASX and ASIC
compliance, control and implementation of corporate governance,
statutory financial reporting and shareholder relations with both
retail and institutional investors.
Mr Math is currently a Non-Executive Director and the Chairman of the
Audit Committee for ASX listed company, Kangaroo Resources Limited. Mr
Math is also a Non-Executive Director of RMA Energy Limited and Company
Secretary of a number of ASX listed companies.
Elemental is in the process of identifying suitable candidates to
strengthen the board to take the project into the next phase.
Dingyi Offer
On 1 July 2013 , Elemental announced that it had executed a bid
implementation agreement with Dingyi under which Dingyi will make an
off-market takeover offer for 100% of the fully paid ordinary shares of
Elemental ("Dingyi Offer").
The proposal and subsequent offer was a result of a process initiated by
the Board of Elemental in June 2012 to explore strategic alternatives
for the Company.
The Dingyi Offer price of A$0.66 per Elemental share was, however,
subject to a number of conditions including Dingyi receiving certain
confirmations and approvals from the Hong Kong Stock Exchange within a
certain time frame. Dingyi was not able to meet these conditions,
despite the continued support and time extensions granted by Elemental
which led to the takeover offer being terminated on 18 March 2014 .
Tenement Details
Elemental Minerals Limited holds 93% of Sintoukola Potash S.A. who has
the rights over the Sintoukola Project situated in the Kouilou Province
in the south west corner of the Republic of Congo . The Sintoukola
Project comprises an exclusive exploration permit, for potash and
associated salts, which covers an area of 1,408 km2 along the northern
part of the coastline in the west of the country.
About Elemental Minerals
Elemental Minerals Limited (ASX/TSX: ELM) is an advanced mineral
exploration and development company whose primary asset is the
93%-owned Sintoukola Potash Project in the Republic of Congo . ELM
completed an advanced Pre-Feasibility Study on its Kola Project in
September 2012 and was awarded a mining license and an environmental
license in August 2013 . The Sintoukola project has the potential to be
among the world's lowest-cost potash producers and its strategic
location near the coast of Central Africa offers a transport cost
advantage to key Brazilian and Asian fertilizer markets. For more
information, visit www.elementalminerals.com
SOURCE Elemental Minerals Limited
Image with caption: "Figure 1. Geological map of the RoC coastal basin, showing the Sintoukola Permit and the Kola Deposit and Dougou Prospect. Elemental and historic boreholes are shown. (CNW Group/Elemental Minerals Limited)". Image available at: http://photos.newswire.ca/images/download/20140430_C6013_PHOTO_EN_39826.jpg