Mammoth Energy Group Signs Option Agreement to Acquire Shares of Grand River Ironsands
April 07 2014 - 9:00AM
Business Wire
Mammoth Energy Group Inc. (MMTE: OTC PINK) today announced that
it has signed an initial option agreement to acquire up to 250,000
shares of the privately held Grand River Ironsands. Grand River
Ironsands is the majority equity holder of The North Atlantic Iron
Corporation.
The North Atlantic Iron Corporation (NAIC) is a joint venture
between Grand River Ironsands Partners (GRI) and Petmin Limited of
South Africa to develop the mineral sands in the 450 square
kilometer site near Happy Valley Goose Bay, Newfoundland. The North
Atlantic Iron Corporation is an iron sands to pig iron project with
a maiden resource statement indicating an abundant low-cost
feedstock for production of a concentrate for conversion into
high-purity pig iron.
Petmin has an option on up to 49.9% of NAIC. It has joint
management control and its stake in NAIC was 25% at November 2013,
following a total investment of $13 million to date. Petmin’s
earn-in option is for 40% of NAIC for $25 million with an option on
an additional 9.9% at a market-related price.
The project has financial and political support from the
Canadian government. The Atlantic Canada Opportunities Agency
(ACAO) has invested $500,000 to partly finance the concentrator
pilot plant through a repayable loan from ACOA’s Business
Development Program.
NAIC produced its first concentrate in August 2012 following the
processing of 8,000 tonnes of iron sands through a pilot plant. A
continuous smelt test of more than 2000 tonnes of pig iron with Fe
content greater than 55% is scheduled for completion in Q2
2013.
The NAIC resource is 594 million tonnes of sand grading at 9.35%
heavy minerals, of which 38.02% is Fe2O3 equivalent. The maiden
resource statement was based on just 3% of the NAIC claim and to a
depth of 15 metres. Deeper drilling by Boart Longyear provides good
indications that the resource extends well below 15 metres.
Privately held Grand River Ironsands Partners is currently the
majority partner on the NAIC project. Grand River Ironsands
Partners largest shareholder is publicly traded Muskrat Minerals,
whose management controls both companies.
"This is our first step of many in a new direction,” said
William Lieberman, President of Mammoth Energy Group. “It has taken
a long time to finally be able to move the company forward, and
Mammoth will be continuing to look to invest in larger North
American projects that are in or close to production. In the
upcoming weeks we will be announcing further developments as we
seek to build a transparent, cash flowing company that will build
value over time. We expect to close out this first initial option
agreement in a very short time frame and have commitments already
lined up for this acquisition. This project has been in development
for more than ten years and I have followed it closely for a long
time. There is a ton of material available on the project and I
would encourage shareholders to look to see the depth, financial
commitments, and the level of expertise that has moved this project
forward in Canada. This is a long term investment with a
significant valuation.”
About Mammoth Energy Group Inc. (OTC MARKETS: MMTE)
www.mammoth-energy.com
Mammoth Energy Group Inc. is focused on acquiring, developing
and operating strategic mining energy reserves in locations
throughout the world. With an ever changing shift to alternative
energy and fuels Mammoth Energy Group will be prepared to be a
leading energy supplier and operator. Mammoth Energy’s goal is to
become an important partner as the world’s energy paradigm begins
to change throughout the next decade and beyond.
About Grand River Ironsands Incorporation - www.ironsands.ca
Grand River Ironsands Incorporated (GRI) is a privately owned
company focused on the ironsands of Labrador first discovered in
1896. Our corporate goals have been focused on what must
be done with the iron sands to create economic success and to do so
in an environmental leadership perspective. After three years of
extensive research, collaboration and assessment – the Company is
firmly of the view that it can produce a low cost iron ore
concentrate that can be advanced to a high purity iron product.
Moving from a model of simply mining heavy mineral sands to making
a high purity iron (cast iron, iron ingots, pig iron) has added a
valuable dimension.
About Petmin - www.petmin.co.za
Petmin (JSE-PET) is a high-growth multi-commodity mining company
which generates cash from operations and pays a dividend to
shareholders. It is geographically diversified with mining
operations in South Africa and exploration projects in Canada,
Liberia and Turkey. Petmin is focused on commodities that support
the steel value chain and are required for urbanisation and
infrastructure growth. Petmin is South Africa’s leading producer of
metallurgical anthracite, and the company is developing a
high-potential iron sands to pig iron project in Canada.
Muskrat Minerals - www.muskratminerals.ca
Publicly traded Muskrat Minerals Incorporated (CNSX-YYR) came
into existence through the indirect acquisition of 29.9% of the
shares of an exciting mineral exploration firm that has developed a
model of converting its ironsands into a high purity pig iron. This
was viewed as an opportunity consistent with the philosophy behind
the founding of the company– identify mineral resource
opportunities with the ability to value-add to create a
strengthened final product. Muskrat currently holds a 42% stake in
Grand River Ironsands.
Forward-Looking Statements
This press release may contain certain forward-looking
statements within the meaning of Section 27A of the Securities and
Exchange Act of 1933, as amended, and Section 21E of the Securities
and Exchange Act of 1934, as amended, and such Forward Looking
Statements are intended to be covered by the safe harbors created
thereby. Investors are cautioned that all forward-looking
statements involve risks and uncertainties. All statements other
than statements of historical fact in this announcement are
forward-looking statements, including but not limited to the
viability of the company's business plans, the effect of
acquisitions on our profitability, the effectiveness,
profitability, and the marketability of the Company's products; the
Company's ability to protect its proprietary information; general
economic and business conditions; the volatility of the company's
operating results and financial condition; and other risks detailed
in the Company's filings with the Securities and Exchange
Commission.
These forward-looking statements involve known and unknown risks
and uncertainties and are based on current expectations,
assumptions, estimates and projections about the company and the
industry. The Company undertakes no obligation to update
forward-looking statements to reflect subsequent occurring events
or circumstances, or to changes in its expectations, except as may
be required by law. Although the company believes that the
expectations expressed in these forward-looking statements are
reasonable, management cannot assure the public that their
expectations will turn out to be correct, and investors are
cautioned that actual results may differ materially from the
anticipated results.
Contact: Ms. Sam OnekaPhone: (917) 725 - 4171Email:
info@mammoth-energy.comWeb: www.mammoth-energy.com
Mammoth Energy Group Inc.Ms. Sam
Oneka, 917-725-4171info@mammoth-energy.comwww.mammoth-energy.com