QUÉBEC CITY, QUÉBEC--(Marketwired - Sept. 11, 2013) - Robex Resources inc. ("Robex" or the "Company") (News - Market indicators)(FRANKFURT:RB4) is pleased to announce that the construction of the NAMPALA plant is entering into its final phase. The start of the plant, with a capacity of 2500 t / day is scheduled for the first quarter of 2014. The initial project to start at 1500 t / day with an investment of $ 13 million has been modified to accommodate an increased production to 2,500 t / day with an investment of $ 18 million to ensure a self sustaining cash flow after this first phase.
To ensure sufficient funds in the treasury for construction of the project, the Cohen family made a loan of $ 2.5 million to Robex until the start-up of this first phase refundable in the first year of production at a rate of 8% interest. Robex is presently reviewing the possibility of a complementary debenture financing and / or equity to meet its needs in order to complete the project and ensure adequate working capital thereafter.
An industrial project on an excellent path
The construction of the plant is progressing very well and the Nampala team is very optimistic about starting production early in the first quarter of 2014.
- The project detail engineering is now completed. The mining plan to optimize the extraction from the open pit will be completed by September 20, 2013;
- Earth works: The tailings site is completed and can absorb one year of operation. With the mining plan completed, Robex will build-up a 90 day inventory of ore for the plant start-up;
- Aside from the "Gold Room" that must be installed, the civil engineering work is almost complete;
- The purchase of equipments related to the plant is nearly completed;
- The majority of the work remaining is the assembly of the plant equipments as they arrive on site ;
- The administration is set up and the computerization of production management and accounting is in the start-up stage, with full recovery of the historic data;
- The most significant part of the remaining purchases is related to the electrical part, which is dependent on everything else. Final specifications were completed at the end of July.
Invest more to earn more
An important reason for the increase in the budget is that Robex invested more now to prepare a production capacity exceeding the initial estimates in an accelerated schedule. It is a matter of investing more to earn more, sooner, and spend less later.
This resulted in an increase in the budget of $ 2 million compared to the forecast of $ 16 million announced at the annual meeting of shareholders on June 18.
Robex's decision to move from a production of 1 500 t / d to 2,500 t / d so as to place the company in a situation of positive cash flow right from the beginning of production activities, required higher investments in certain parts of the construction.
Industrial choices accelerating the initial project have been made, for example:
A larger sludge that will not be replaced quickly.
- The company has decided to equip itself with a sludge separator that can absorb, from the start, a potential of 4 000 t / d of ore. This decision has certainly brought an additional investment, but it will avoid buying another one in 2014, which would have resulted in additional costs and a stop of the production next year;
Foundations for tanks to avoid a heavy loss in the future.
- Robex would have to stop the plant for about eight weeks in 2014 to build two additional cyanide treatment tanks to move to 4,000 t / d in the next phase. Robex anticipated that investment by doing the foundation of the four tanks now, representing 30% of the investment of the following phases. In making this additional investment of $ 600,000 now, Robex will subsequently avoid a loss of about $ 8 to 13 million.
A more efficient gold room.
- The "gold room" includes a new recovery process consisting of integrated tanks. This tank size has an equivalent capacity for processing 2000 t / d of ore, so Robex had to take two for a capacity of the gold room at 4000 t / d theoretically, which match the next phase of growth;
Thus, our planning for 2014 and the financial analysis led Robex to acquire from the start, a plant including:
The ore feed system which is sized for up to 4,000 t / d;
The cyanide-leach is sized to 2500 t / d, but the transition to 4000 t / d is already covered by 30%, and is expected to cost $ 1 million;
- The gold room is already sized to treat an equivalent of 4,000 t / d ore to the plant.
The war period in Mali which is now in the past, after democratic and peaceful elections acclaimed worldwide, has been utilized by Robex to improve the timing and choice of investments to make them more coherent.
The end of the war has permitted ROBEX to embark on more ambitious perspectives.
Georges Cohen, President and CEO of Robex said: "15 months and $ 18 million of CAPEX have been necessary to establish a plant capable of producing about 15 to 16 000 oz / year. With an additional investment of $ 1 million, the plant capacity should be increased to about 26, 000 oz / year, a few months after starting. Although the budget has increased from the initial project, achieving with a CAPEX of less than $ 20 million a production capacity of 26 000 oz / year is consistent with our goal of cost control and performance. We believe very strongly in this project and we remain enthusiastic."
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This press release contains statements that may constitute "forward-looking information" or "forward-looking statements" as set out within the context of security law. This forward-looking information is subject to many risks and uncertainties, some of which are beyond Robex Inc.'s ("Robex") control. The actual results or conclusions may differ considerably from those that have been set out, or intimated, in this forward-looking information. There are many factors which may cause such disparity, especially the instability of metal market prices, the results of fluctuations in foreign currency exchange rates or in interest rates, poorly estimated reserves, environmental risks (stricter regulations), unforeseen geological situations, unfavorable extraction conditions, political risks brought on by mining in developing countries, regulatory and governmental policy changes (laws and policies), failure to obtain the requisite permits and approvals from government bodies, or any other risk relating to mining and development. There is no guarantee that the circumstances anticipated in this forward-looking information will occur, or if they do occur, how they will benefit Robex. The forward-looking information is based on the estimates and opinions of Robex's management at the time of the publication of the information and Robex does not assume any obligation to make public updates or modifications to any of the forward-looking statements, whether as a result of new information, future events, or any other cause, except if it is required by securities laws.
