VANCOUVER,
March 5, 2014 /CNW/ -
Transatlantic Mining Corp (TSX.V: TCO) ("Transatlantic") is
pleased to announce that together with technical consultants Coffey
International it has recently completed a successful site visit to
Ansongo for due diligence purposes. It would also like to summarise
the project and key terms of the proposed transaction.
Project Summary
Investment
Opportunity |
- Fully Permitted Mine
- Offtake Partners in Place
- Transatlantic has option to acquire up to 70% of the project,
making it majority owner of one of the world's largest high grade
Manganese deposits
|
Backed by Strategic
Investors |
- POSCO, the world's 5th largest steel producer with 39.9
million metric tons of steel production in 2012
- Hengxing, a leading Chinese Manganese importer that
consumes approximately 800,000 metric tons of imported Manganese
ore per annum
- Element Commodities, a Hong Kong based Commodity Trading
House with international expertise in the sales and distribution of
steel related raw materials
|
World Class
Manganese Project |
- Previous production with existing stockpiles at
site
- Exploration upside with eight observed outcropping
hills (up to 100 metres in height) over 25km structure, six are
along strike of main deposit yet to be drilled
- 30 year Exploitation License (from 15/07/2011) over 212
km 2 tenement
|
Road, Rail & Port Infrastructure
| Road/Rail |
- All year round road access & Multiple routes to
market
- Ansongo to Niamey Dry Port 346kms
- Ansongo to Burkina Faso rail spur 400kms
- Very good quality road to Ansongo (built by European
Union)
|
Low Cost
Trucking |
- Low cost trucking due to backhaul logistics
- 2 million metric tons per annum of freight capacity returning
to port from Niamey*
- Approximately ~US$130/Mt from Ansongo to CIF China for scaled
production (includes material handling, port, shipping and
insurance).
- Current price for 44% Manganese is $250 per ton
approximately.
|
Future
Infrastructure |
- Ansongo mine is adjacent to proposed West African rail network
extension
- Pan African Minerals extending rail to Tambao approximately
100kms from Ansongo Project
- Announced in November 2013 rail is being extended to Niamey
www.bollore-africa-logistics.com/en/media/news/rail-project.html
|
Source: CAT Logistics Study
Favourable Manganese Market Outlook
Key Steel Making
Additive |
- ~94% of global Manganese mine output is used to produce
Manganese ferroalloys, which are consumed in steel making*
- No practical
substitutes*
|
| Highly Strategic |
- From the steel producers perspective, security of supply of
Manganese ore is more important than price - as distinct from iron
ore
- Manganese content in steel ranges from 1-10%
- Consequently price dynamics can be volatile (e.g. Post GFC
period prices peaked in mid-2010 at US$360 per ton for 45%
Manganese product)
|
Concentrated
Market
Structure |
- Top 5 producing nations* have a market share of 86% into China
(Jan-Dec 2013) and 88% into India (Jan-Oct 2013).
- South Africa Manganese supply growth has loomed for some time
however infrastructure capacity remains unsupportive of material
growth
|
*Manganese Institute
**Australia, South Africa, Ghana, Gabon
& Malaysia.
Road, Rail & Port Infrastructure Continued
Access to Four
Main
Ports |
- Lome (Togo) and Abidjan (Cote d'Ivoire)
- Tema (Ghana) and Porto Novo (Benin)
|
Each Port
Offers
Container and Bulk
Shipment Alternatives |
- Containers enable small shipments for premium pricing to small
smelters
- Ability to bulk-ship with Panamax Vessels (typically DWT of
65,000 - 80,000 tonnes).
- Previously shipped 70kt Mn through Lome Port and 40kt Mn
through Abidjan port
- Possible regional synergies with neighbouring projects
(Tambao)
|
Investment Summary
Transatlantic will pay Tassiga Ltd (subject to
shareholder approval) US$3.5m in cash
and issue to Tassiga 35 million shares, and an option to purchase
an additional 5 million shares for a consideration of CAD$1 at such time as the price of
Transatlantic's common shares trading on the TSX Venture Exchange
is CAD$0.50 per share for at least 10
consecutive trading days.
As consideration Transatlantic will receive:
- An initial 30% interest in the project,
- A 2% royalty on all production from the project,
- A 3 year option to acquire a further 40% interest in the
project (with the option exercise price being pro rata 2 million
Transatlantic common shares for every 1% of the project, or
equivalent cash consideration if mutually agreed),
- Management control of the project.
Recent due diligence conducted by Coffey
International including a site visit and sampling has confirmed the
potential of historical resource estimates. A follow-up drill
program has been prepared and budgeted accordingly.
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About Transatlantic Mining Corp
Transatlantic Mining Corp. is a mineral
exploration company focused on becoming the next diversified
industrial metal producer. The Company's holdings include an 88%
interest, in the Gnaweeda Gold Project in Western Australia, an option to earn an 80%
interest in AMCOR's Monitor Copper, Gold and Silver project in the
Coeur D'Alene Mining District in Idaho and an option to earn up to 70% of the
Ansongo Manganese Project in Mali,
West Africa.
On behalf of the
Board of Transatlantic Mining Corp.
(signed)
Aidan
Nania
Director and CEO
SOURCE Transatlantic Mining Corp.
Image with caption: "Crusher in foreground of Manganese Hill D
at Ansongo (CNW Group/Transatlantic Mining Corp.)". Image available
at:
http://photos.newswire.ca/images/download/20140305_C9473_PHOTO_EN_37613.jpg
Image with caption: "Chinese Manganese Imports and Mn Content
& Crude Steel Production (CNW Group/Transatlantic Mining
Corp.)". Image available at:
http://photos.newswire.ca/images/download/20140305_C9473_PHOTO_EN_37614.jpg
Image with caption: "Source: Mali Manganese S.A. (CNW
Group/Transatlantic Mining Corp.)". Image available at:
http://photos.newswire.ca/images/download/20140305_C9473_PHOTO_EN_37615.jpg