openPR Logo
Press release

Astra acquires Concentrated Metal Ore deposit in Norway

02-27-2012 03:25 AM CET | Business, Economy, Finances, Banking & Insurance

Press release from: Zakazukha Marketing Communications

/ PR Agency: Straight Line PR

International diversified resources company, Astra Resources Plc (FWB Code: 9AR), has acquired the Joma Minerals Project, a concentrated metal ore mine in Lake Hudningsvatnet, Norway.

Adelaide, Australia, February 22, 2012 - International diversified resources company, Astra Resources Plc (FWB Code: 9AR), has acquired the Joma Minerals Project, a concentrated metal ore mine in Lake Hudningsvatnet, Norway.

The acquisition, signed through Astra’s subsidiary MidAst Investment Group LLC, is on a scrip basis, and gives Astra operational control and 90% ownership of the operation (equivalent to Astra’s 90% stake in MidAst) which is situated in the county of Nord-Trondelag, near the Swedish border of Norway. Astra will form a Norwegian subsidiary to manage, own, and operate the asset and licenses.

The operation is subject to final due diligence, including the completion of technical and scientific reports, testing of samples obtained by Astra , independent confirmation of the calculated output value and Astra Resources board approval.

Deposit registrations made by the mine lab of the previous mining company indicates iron ore, copper, zinc, gold and silver resources are all present in the acquisition area, representing about 60% of the over 10.5 million tonne plus deposit. The asset has been defined.

Astra CEO Dr Jaydeep Biswas says the most recent assay in October 2011 indicates a current net asset value of over US$600 million (after deducting operating costs), excluding the value of gold. The gold value brings the potential value closer to US$1 billion.

“The deposit was built up over 16 years by concentrated tailings from past mining operations, with this type of storage previously being the norm,” Dr Biswas says.

“Registered information indicates there is up to 12 million tonnes of finely ground, concentrated ore currently situated at the bottom of Lake Hudningsvatnet, which is 18 meters down at its deepest point.

“As the ore is already extracted and defined, there is no requirement to drill and there will be no cost for mining, crushing and milling the ore, removing the need for expensive equipment and high start-up costs.

“Instead, the ore will be pumped from the bottom of the lake and dried with very standard low cost equipment, with estimated processing costs sitting at less than $10 per tonne if we focus solely on the extraction of iron ore.”

The enrichment process that is planned will result in 63% iron ore Logistics to port and port facilities are in place to take these products to local European and international markets.

Astra Managing Director Silvana De Cianni says while the extraction of iron ore will prove highly cost-effective for Astra, other resources present in Lake Hudningsvatnet add substantial value to the operation.

“The silver content alone has a gross value of $300 million, with the previous manager of the mine confirming there are also substantial gold resources present that are not included in the initial valuation,” Ms De Cianni says.

“In addition, there are also indications that suggest there is a content of rare soil minerals in the ore deposit, something that will be further analysed during the production process.”

Astra plans to finish the exploitation of the current deposit during the next 10-12 years, with production expected to include the uptake of the resources from the lake, drying and separation of the waste rock.

The resources will then be transported to a harbour in the nearby town of Namsos for export. Its harbour is ice-free all year round and was used by the previous mine owners, with the main part of the infrastructure remaining.

While the land surrounding Lake Hudningsvatnet is not included in the acquisition, Astra has received the land owner’s permission to lease the necessary land for the development of the project and ore processing.

MidAst Investment Group’s Managing Director Vincent Crandon will be responsible for integrating the acquisition into the current Astra business sector, and will then manage the corporate operation of the asset.

The total scrip offered in the acquisition is 50 million shares in Astra Resources Plc which is included in the existing Astra capital structure.

The operation’s present owners, CRD Holdings AB, have also been engaged for two years on an exclusive basis as technical advisors to Astra, or any special purpose vehicle established by Astra, for the purpose of the acquisition and operation of the ore asset.

Bo Sandström, representative for CRD Holding AB, says the company is very much looking forward to working with Astra Resources as well as Vincent Crandon of MidAst Investment Group on the development of the Joma Minerals project.

“We are very pleased with the result of our efforts to find a solution on the financing of this Ore development and we rest assured that this will be a very fruitful collaboration,” Mr Sandström says.

It is expected the production process will begin during 2013, once all the operations permits are in place. Hedge funds in Europe are in discussion with MidAst to fund the operations of this project or alternatively it will be funded through Astra’s IPO prospectus to be launched later this year.

This project will be a launch-pad for future projects in Scandinavia which has a history of mining and prospective geological structures and is close to industrialised consumer markets in Europe where Astra is also building its T-Steel business.

Astra Resources’ global portfolio includes gold interests in Southeast Asia, coal mine in Africa, iron ore in India and the Philippines, carbon efficient businesses, the production of the high-strength T-Steel technology in Hungary and the provision of mining services housing in Rockhampton, Queensland.

For all media enquiries contact: Bruce Nelson +61 (0) 423 403 449 (bruce@zakazuhka.com)
Caitlin Petrou +61 (0) 402 823 343 (caitlin@astraresources.com.au)

Disclaimer in regards to Forward-looking Statements
Certain statements included herein, including those that express management’s expectations or estimates of our future performance constitute “forward-looking statements” within the meaning of applicable securities laws. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management at this time, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Investors are cautioned not to put undue reliance on forward looking statements. Except as required by law, Astra Resources PLC does not intend, and undertakes no obligation, to update any forward-looking statements to reflect, in particular, new information or future events.

Contact:
Bruce Nelson
Zakazukha Marketing Communications
3 Eden Court
Nerang, Queensland 4220
+61 7 5596 6634
bruce@zakazukha.com
http://www.zakazukha.com

This release was published on openPR.

Permanent link to this press release:

Copy
Please set a link in the press area of your homepage to this press release on openPR. openPR disclaims liability for any content contained in this release.

You can edit or delete your press release Astra acquires Concentrated Metal Ore deposit in Norway here

News-ID: 212005 • Views: 1264

More Releases from Zakazukha Marketing Communications

Disruptive building technology wins Engineering Excellence Award
Innovative Sydney based firm TEKTUM, global consultancy Arup and industrial designers Make Good, have won an Engineering Excellence Award for unique flat pack SPACE2.0 building system. Space 2.0 took out the Product, Manufacturing Facilities and Processes category announced this month for what has been described as true ‘disruptive technology’ in the building industry. TEKTUM joint managing director, Nicolas Perren, says SPACE2.0 is a plug-and-play housing solution which provides the next generation of
Jenepé appoints new Head of Global Business Development
Jenepé Capital is pleased to announce the appointment of financial services stalwart David Macauslane as Head of Global Business Development. Mr Macauslane will be based in the Jenepé offices on the Gold Coast in Queensland, Australia, and will also work with the other Jenepé offices in Melbourne, Perth and London. His primary responsibilities will include building out the existing client base of companies listing on global stock exchanges, managing those
NSW Wealth Creation Firm Opens Queensland Office
NSW based wealth creation firm Chase Edwards has opened a Gold Coast office to service its growing Queensland market. Nerang, Qld, September 11, 2012 - NSW based wealth creation firm Chase Edwards has opened a Gold Coast office to service its growing Queensland market. The company has taken the majority of level 10 in the Bundall Corporate Centre to accommodate its professional service team and telemarketing company. Chase Edwards’ Queensland state sales manager
Rapid Nutrition Appoints New Board Member
Australian natural healthcare company Rapid Nutrition has appointed Vaidy Nateshan to its board of directors. Nerang, Queensland, March 08, 2012 - Mr Nateshan’s career includes work in both the operational and strategic aspects of a wide range of industries ranging from oil and gas, Information Technology, business consulting and pharmaceuticals. Having travelled extensively, he has worked in over 30 countries and executed and managed strategic alliances in over 12 countries, which includes

All 5 Releases


More Releases for Astra

Is Astra Horizon Genuine and Reliable Platform? An Honest Review of Astra Horizo …
In the crypto market, trading has grown day by day and become a popular trend. In recent times despite the chance of making profits, losses also happen as witnessed. Everybody hates the feeling of losing money. But don't worry, here is the platform that enables you to do trading with minimum chances of losing money and time. Astra Horizon is a genuine and reliable trading platform. Our aim is to give
Caution! This is a Reliable Review of Astra Horizon withdrawal and Astra Horizon …
The popularity of cryptocurrencies expanding exponentially at present moment. Depending on its current stage people are likely of creating profit but, witnessed loss also. Let's Accept it, We all hate losing money. With regards to trading, I will offer you a platform that permits you to trade with minimal risk of losing your money, isn't it interesting? Introducing Astra Horizon, a trustworthy crypto trading platform. The Astra Horizon withdrawal and Astra Horizon
Astra Horizon review – Personal reviews
Astra Horizon review – Personal reviews Over time, we've read stories from various news outlets of individuals losing huge funds to the crypto market. According to a few of these stories, a lack of proper knowledge of these cryptocurrencies and how they work is one of the reasons for these losses. Another is the unavailability of an advanced trading platform that will offer clear and factual trading signals. The launch of
ASTRA HORIZON REVIEW - Is AstraHorizon a good forex broker ?
Astra Horizon Review: Astra Horizon Trading Software - Professional Forex Broker Warning: Trading with a Forex Broker can be risky, don't trade alone, ask for an Account Manager to guide you through the Platform. The company provides trading services, market analysis and trading accounts for investors. The company has good reviews online, people is generally satisfied with Astra Horizon Forex broker. 5 Things you should know before Trading: 1- Astra Horizon is specialized in Cryptocurrencies 2-
ASTRA HORIZON REVIEW - SCAM ADVISOR: TRUSTED COMPANY
Verified Reviews from Trustpilot: https://uk.trustpilot.com/review/astrahorizon.com Read our Astra Horizon review to see why it is one of the best broker for trading. Official Website https://www.astrahorizon.com Personal Account Manager Maximize your experience by receiving guidance from your own personal bookkeeper whom will assist you with your strategies and trading choices, making the best out of your investment portfolio with our firm. Secured Accounts Your identity is kept secured and remains unidentified on records. In addition to staying
Coffee Vending Machines Market: Top Players - Astra, Canteen, Selecta
MarketResearchReports.Biz adds “Global Coffee Vending Machines Market Share, Size, Trends and Forecast Market Research Report” reports to its database. This report provides a strategic analysis of the Coffee Vending Machines and the growth estimates for the forecasted period. In this report, the global Coffee Vending Machines market is valued at USD XX million in 2017 and is expected to reach USD XX million by the end of 2025, growing at a