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Metals Finance Corp. Has A Validated Business
Plan Enabling the Company to Enjoy the Upside of the Resource Boom while
Minimizing Associated Risks
Metals Finance Corp was established in 2003
for the specific purpose of providing a unique combination of project
implementation skills and funding for the development of metal recovery
projects around the world.
Over the past three years, Metals Finance
has proven the validity of its solid business plan. It has a wide-ranging
portfolio of potential development opportunities, including two key projects
that it has advanced to the final stage of development – ready to be
brought into production.
Metals Finance is now providing you with the opportunity to join the Company
as it aggressively pursues the potential of these projects to achieve its aim
of establishing a cash flow as soon as possible.
Via its IPO offer, the Company is issuing 30,000,000 ordinary shares at 50
cents each to raise up to $15,000,000, with the right to accept a further six
million shares at an issue price of 50 cents each to raise up to a further
$3,000,000.
“We are quite different from other resource companies,” Mr. Tony
Treasure, Metals Finance’s Chief Executive Officer explained to the
Australian Investor, “Our reason for being is to provide financing,
technical input and the implementation skills for projects that are already
defined. Essentially we are not an exploration company. We are focused on
taking defined resources to the next level.”
For the last three years Metals Finance was a private company. During this
time the Company has taken its two key projects through development to the
end of detailed feasibility studies.
“As a result, we have identified and fully outlined these projects
reducing the financial and technical risk that is commonly associated with
the development of resource projects,” Mr. Treasure told the Australian
Investor, “Furthermore, as most of the development work on the projects
has been completed, both of them are targeted to be in production during
2008.”
One of its key projects is a nickel resource near Townsville, North Queensland. Metals Finance is in a joint venture
agreement with Metallica Minerals Limited for the development of this
resource. Over the past eighteen months, the Company has completed a
comprehensive pilot programme on the ore from the deposit, leading to
completion of a detailed independent feasibility study.
“Based on the encouraging results, we aim to proceed with establishment
of the project,” Mr. Treasure commented, “Detailed engineering
and equipment procurement have already commenced.”
The Company’s second key project has been obtained through its 50%
owned company in South Africa, Metals Finance Africa Ltd. Through this
company it has entered into an agreement that provides for the design,
installation, commissioning and operation of a nickel recovery plant
processing a bleed stream at the Rio Tinto controlled Palabora copper
refinery in South Africa.
“We believe that both of these projects demonstrate the key objectives
of our business strategy,” Mr. Treasure informed the Australian
Investor, “The cost of production should be low and the cash flows that
result should be substantial, especially considering the strong nickel
prices.”
In addition to these projects, Metals Finance has a number of other
opportunities for future project development under investigation.
“We have a multiple project approach, including projects that cover a
broad range of commodities,” Mr. Treasure explained to the Australian
Investor, “We are focused on minimizing our risks and as such do not
believe in putting all of our eggs in one basket.”
Within this pipeline, Metals Finance’s rights to develop some of these
projects have been secured by formal joint venture agreements, and the
Company is planning to continue investigation of some of these opportunities
during 2008.
Priority will be given to further investigation of the Barnes Hill nickel
laterite deposit in Tasmania
where Metals Finance has secured an agreement with the tenement holders, Proto
Resources and Investments Limited. It is reported that the deposit contains a
12.1 million tonne Australasian Joint Ore Reserves Committee (JORC)
compliant, Indicated Resource at 0.83% nickel and 0.07% cobalt.
To aid its development, the Company has assembled a core group of
professionals in its board, and executive and senior management who have
extensive skills and experience in driving the corporate and technical growth
of companies.
Mr. Treasure concluded, “We believe the combination of the wealth of
our experience and our network of contacts, as well as our proven business
plan and a hefty dose of conservatism will enable us and our potential
investors to enjoy the upside of the resources boom, while minimizing the
associated risks.”
November 2007 
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