Montreal, QB / ACCESSWIRE / April 14, 2014 / St-Georges Platinum and Base Metals Ltd. (OTCQX: SXOOF) (CSE: SX) (FSE: 85G1) is pleased to report that it has entered into a conditional purchase agreement with Copper Dynasty Corp. and Zhongda Power Fuel Co. Ltd of Hong Kong, China, for the delivery of copper concentrate.
The agreement is based on the delivery of 20,000 metric tonnes per month of copper concentrate (240,000 metric tonnes per year). The concentrate grade is expected to be of 25% copper. The concentrate is expected to originate from the Zambian Projects of the Company and be transported for delivery to the South African port of Durban (a distance of 2,649 km). The agreement calls for the use of the alternative ports of either Beira (Mozambique, 1,904 km) or Dar es Salaam (Tanzania, 2,370 km) with 90 days prior notice from the Company. The price agreed upon is set at a 50% discount from the copper metal price published by the London Metal Exchange (LME) 3 days prior to the monthly delivery date.
The agreement will be valid for a period of 5 years from the initial delivery and its enforcement is conditional to the closing of the acquisition of the Zambian projects by St-Georges, the ability of the Company to finance the production upgrade on its Zambian Projects and the existence of a mineral resource (defined or not defined) on these projects and the ability to obtain and maintain permitting for the duration of the 5 year contract. St-Georges will also be allowed to suspend delivery at its discretion if the LME price for copper reaches $2.25/lb. or lower. An additional commodity brokerage fee of 2% of the net profits will be returned to Copper Dynasty Corp.
A bulk calibration order of 200 metric tonnes should be delivered by the Company to the port of Durban within 60 days from the signing of the contract or within 30 days of the final closing of the projects acquisition by the Company.
“This agreement is an important milestone for St-Georges,” commented Rob Gardhouse, President & CEO of the Company. “This positions St-Georges to generate significant revenues in the coming years through the sale of copper concentrate to Copper Dynasty Corp. and Zhongda Power Fuel Co. Ltd. from its Zambian Projects.”
About the Zambian Projects
In a news release dated February 5, 2014, St-Georges Platinum announced that it entered into a binding agreement to acquire 100% of two mineral mining projects in the Kasempa and Mwinilunga Districts in Northwestern Zambia.
The Mwinilunga Copper-Cobalt-Gold Project. Covering 740 hectares, the project is located close to the Angola and DRC borders and is in the vicinity of CopperZone and Vale Inco’s Luamata Joint-Venture Project. Current small scale punctual production of 3,000 tonnes of Copper Concentrate (15%) per month on the mining license will be consolidated under St-Georges’ control at closing of the transaction, and will be managed under a service agreement to be finalized before the end of the due diligence period.
The Shongwa IOCG & Nickel Project. Covers an area of 726 km2 and is located approximately 60 km northwest of the town of Kasempa. There is a current JORC Definitive Feasibility Study (DFS) in place and the Company plans to verify and integrate the historical and JORC information into new NI 43-101 reports, and is currently evaluating the level of work required. The Company further expects to initiate work on a NI 43-101 compliant Preliminary Economic Assessment Study (PEA) later in 2014 or early 2015, conditional to the closing of the acquisition transaction.
ON BEHALF OF THE BOARD OF DIRECTORS
MARK BILLINGS, DIRECTOR
St-Georges is a vertically integrated Platinum-Palladium-Gold, Copper-Cobalt & Nickel Explorer and Developer. Headquartered in Montreal, the Company’s stock is listed on the CSE under the symbol SX, on the OTCQX under the Symbol SXOOF and on the Frankfurt Stock Exchange under the symbol 85G1. For additional information, please visit our website at www.stgeorgesplatinum.com.
The Canadian Securities Exchange (CSE) has not reviewed and does not accept responsibility for the adequacy or the accuracy of the contents of this release.
SOURCE: St-Georges Platinum and Base Metals Ltd.