Tirex Plans Copper and
Gold Production
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Tirex
Resources Ltd. ("Tirex") is pleased to
announce that it has arranged to commence near term copper and gold production
at its Mirdita VMS project located in Albania. Tirex has signed a Memorandum of Understanding
("MOU") detailing terms that have been agreed to with Ekin Maden Tic. Ve San.
A.S. ("Ekin Maden"),
Turkey's leading non-ferrous metals and minerals trading company since 1982.
Under the MOU Tirex and Ekin
Maden will organize and establish a new operating
company of which each company will be 50% shareholders ("OpCo") and:.
- Tirex will contribute 6 historically
known mineral deposits to OpCo from its Mirdita VMS District holdings.
-
- Ekin Maden
will contribute Fushe Arrez
mill capacity to process the ore mined by OpCo
-
- Ekin Maden
will finance the mine development capital and equipment required to
commence production
-
- OpCo will commence mining of the 6
historically known deposits
-
- OpCo will sell broken ore to the
mill, at the mill gate
-
- OpCo will receive a pre-determined
percentage of the gross contained value of the ore at the mill gate
-
- Tirex and Ekin
Maden will agree to a mutually acceptable manner
to weigh, assay and value the ore
-
- Tirex will have no direct
involvement in the mill nor in Ekin Maden's smelter agreements
-
- Tirex will apply for Exploitation
Permits (Mining Permits) for the 6 initial deposits covered within the
agreement
-
This production arrangement cost-effectively, and non-dilutively fast-tracks Tirex into
production. The initial production profile of OpCo
will include copper and gold while the additional potential of zinc production
will be immediately assessed by OpCo's technical
team. Substantial near term production and cash flow is being targeted from the
deposits being contributed to OpCo by Tirex.
Ekin Maden is a
well-established, respected and privately held mining company whose principals
have extensive expertise and experience in mining, metals trading and
operations. Ekin Maden is
the owner of the biggest copper mine in Albania, namely BERALB SH. A ("BERALB"), with a capacity of approximately 600,000 tonnes of copper ore per year. Ekin
Maden was established in 1982 and is a leading
Turkish company involved in lead, zinc, copper and chrome ore exporting, the
importing of lead, zinc, aluminum metals and copper cathodes, mining, and mine
finance. The annual turnover of Ekin Maden companies is approximately $700,000,000 USD.
BERALB has two copper and gold mining operations in Albania and also operates
the Fushe Arrez Copper
Enrichment Plant located in the town of Fushe Arrez in Puka District. This mill
and flotation plant complex has recently been expanded and is targeted to now
have a total ore processing capacity of 600,000 tonnes
per year. The plant is on a surface area of 19.05 ha and can be expanded
further when required by an expansion of available feedstock.
Tirex Chief Executive Officer, Bryan Slusarchuk, states, "We are very pleased to have
reached this production arrangement with Ekin Maden. The principals of Ekin Maden have a long and distinguished career in the metals
industry and we are proud to enter this mining partnership. Ekin
Maden operates to a very high set of standards, is an
excellent corporate citizen and we look forward to working with their team
within the Mirdita VMS District."
Erol Kohen, Chief Executive
Officer of Ekin Maden A.S.
states "Ekin Maden
looks forward to a long term mining partnership with Tirex.
We will work together to move these deposits into production very quickly and
efficiently, while getting maximum value from the ore through safe, responsible
and expert mining methods."
Tirex and Ekin Maden are in the process of establishing a corporate entity
in Albania to fulfill the objectives of the MOU and are working to complete a
Definitive Agreement relating to this production arrangement. Further details
on the transaction and potential of the mining operations will be provided,
pending a successful finalization of the Definitive Agreement and subject to
all necessary regulatory and other approvals.
This mine production will provide employment and development in the Mirdita Region and will be conducted in accordance with
international standards in terms of environment, health, safety and community. During the lead up to mine production, Tirex
Directors Mr. Fred Sveinson, P.Eng.
and Mr. George Gorzynski, P.Eng. will provide technical
input alongside of Ekin Maden's
experienced team of mining engineers.
Further details on the company and the Mirdita
Project can be found on the Tirex website at www.TirexResources.com.
ON BEHALF OF TIREX RESOURCES LTD.
"Bryan J.R. Slusarchuk"
CEO and Director
Tirex Resources Ltd.
512 -- 470 Granville Street
Vancouver, B.C., Canada V6C 1V5
Tel. 604-687-7160
Fax. 604-687-7165
Email: info@TirexResources.com
Website: www.TirexResources.com
Forward-Looking Statements. This Tirex News Release
may contain certain "forward-looking" statements and information
relating to Tirex. Such statements include but are
not limited to statements about the MOU, the production arrangement and the
intention to conclude a definitive agreement. Often forward-looking statements
or information include words such as "plans", expects", "intends",
"anticipates", "estimates" "forecasts", or
variations of such words and phrases or statements that certain actions, events
or results "may", "could", "would",
"might" or will be taken occur or be achieved. Although
forward-looking statements and information contained in this release are based
on the beliefs of Tirex management, which we consider
to be reasonable, as well as assumptions made by and information currently
available to Tirex management, there is no assurance
that the the forward-looking statement or information
will prove to be accurate. The assumptions made include assumptions about Tirex's ability to move forward with the MOU and the
production arrangement and conclude a definitive agreement. The forward-looking
statements and information contained in this release are subject to current
risks, uncertainties and assumptions related to certain factors including,
without limitations, the risks related to negotiating and concluding a
definitive agreement and obtaining all necessary approvals, exploration and
development risks, expenditure and financing requirements, title matters,
operating hazards, metal prices, political and economic factors, competitive
factors, general economic conditions, relationships with vendors and strategic
partners, governmental regulation and supervision, seasonality, technological
change, industry practices, and one-time events as well as risks, uncertainties
and other factors discussed in our quarterly and annual management's discussion
and analysis. Should any one or more of these risks or uncertainties
materialize or change, or should any underlying assumptions prove incorrect,
actual results and forward-looking statements and information may vary
materially from those described herein. Accordingly, readers should not place undue
reliance on forward-looking statements and information contained in this
release. We undertake no obligation to update forward-looking statements or
information except as required by law.
"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 news release."