HE-5 Resources, Corp. Achieves a Preliminary Agreement for Mining Concession with the Republic of Cote d'Ivoire
February 01 2008 - 8:30AM
PR Newswire (US)
Properties Situated in Mountain Regions that Contain Estimated 3
Billion Metric Tons of Iron Ore Resources NEW YORK, Feb. 1
/PRNewswire-FirstCall/ -- HE-5 Resources, Corp. (HRRN: Pink Sheets)
today announced that it has achieved a Preliminary Agreement for an
iron ore mining concession with the Republic of Cote d'Ivoire. The
concession constitutes several massive iron ore Properties situated
in the mountain regions in Cote d'Ivoire. According to published
reports of 2000 by MBendi Information Services (Pty.) Ltd, the iron
ore resources in the mountain regions amounted to an estimated 4
billion metric tons at a grade of 40% iron. As per the Preliminary
Agreement, HE-5 will generate substantial revenues from the export
of iron ore extracted from the Properties for a period of at least
15 years. HE-5 will be authorized by the Government to exclusively
perform the following tasks: mine exploration, development and
production; in-country infrastructure; international financing; and
iron ore sales to international steelmakers (hereinafter referred
to as the "Project"). The strategic international economic goal of
this iron ore Project is to create a long-term, multi-billion
dollar funding source to improve the living standard; economic
growth; and political stability of Cote d'Ivoire and its people.
Background of Preliminary Agreement HE-5 has retained the services
of Mr. Fernand Gilbert as our international representative to
negotiate the iron ore mining concession with SODEMI (Societe
d'Etat pour le Developpement Minier de la Cote d'Ivoire). The
current Governor of the District of Yamoussoukro - the official
capital city of Cote d'Ivoire, Mr. N'Dri Koffi Apollinaire, favors
and supports HE-5 as the concessionaire for this Project. The iron
ore Properties are situated in the District of Yamoussoukro. The
authority to award the iron ore mining concession is under the
constitutional authority of Governor Apollinaire. The final
documentation for the iron ore concession called a binding
Agreement is currently being negotiated. The key participants in
the negotiations are Mr. Gilbert representing HE-5; the Project
Committee of the Director General (PCDG), who reports directly to
the President of Cote d'Ivoire; and the Ministry of Mines and
Energy. The PCDG includes the National Bureau of Technical Studies
and Development (BNETD); the Port of San Pedro; and SODEMI. HE-5
CEO Denyse Raynault stated: "Obtaining this multi-billion dollar
iron ore concession will represent the most significant
accomplishment in the history of HE-5. The profits earned from this
concession will allow HE-5 to fund future acquisitions and the
exploration, development and production of its gold mining
properties. We have set a goal to accomplish complete international
legalization of the concession Agreement by April 15, at which time
the final signed documents will be posted on the corporate
website." HE-5's Iron Ore Mining Strategy This multi-billion dollar
Project will signal HE-5's entry into the global iron ore industry
with the objective to position it as an important player in this
multi-billion dollar market. HE-5's decision to aggressively
establish a significant presence in this industry via the pursuit
of this Project was based primarily on the significant value that
it would create for the Company's shareholders. In addition, its
decision was supported by HE-5's capabilities and familiarity with
large mining projects, and the current robust global iron ore
market. HE-5 will leverage its experience and extensive network in
the mining industry, gained mainly during its ongoing Overman
Property gold mining project in Nevada, to this major iron ore
mining Project in Cote d'Ivoire. Global Iron Ore Market The iron
ore in steel is mined and exported in far greater quantities than
nickel and copper. Global iron ore production reached 1.7 billion
tons in 2006, up from one billion tons in 2000. World consumption
of iron ore grows 10% annually. The competing consumers to acquire
iron ore sources are: China, India Japan, Korea, and the United
States. Current market conditions are extremely favorable as
evidenced by a recent report stating that the world's three largest
iron ore miners, CVRD; BHP Billiton; and Rio Tinto, are committed
to keeping pace with China's increasing iron ore demand. Despite
China's campaign to eliminate outdated capacity, the country's
steelmaking capacity is set to grow in 2008, further tightening
global iron ore supplies. Rio Tinto Ltd. recently announced that it
plans to take advantage of the high spot iron ore price and sell up
to 15 million tones of ore into the spot market in 2008. The
difference between spot prices and contract prices are significant,
with benchmark contracts fetching about $US85 per tonne for iron
compared with spot prices of about $US190 per tonne. About HE-5
Resources, Corp. HE-5 Resources, Corp. (HE-5) is a growth-oriented
and emerging natural resources company. HE-5's mission is to
maximize shareholder value by investing in pre-production mining
projects, which are undervalued and have proven reserves that will
increase the revenue and profit of the Company. HE-5's goal is to
establish a vast mineral reserve and resource base with a focus on
the following 5 metals: gold, silver, iron, zinc and platinum.
Forward-Looking Statements Please be advised that statements made
herein, other than historical data, constitute forward-looking
statements that involve risks and uncertainties that could cause
actual results to differ materially from those stated or implied by
such forward-looking statements. The potential risks and
uncertainties include, among others, potential volatility in the
company's stock price, increased competition, customer acceptance
of new products and services offered by the company, and
uncertainty of future revenue and profitability and fluctuations in
its quarterly operating results. Please also be advised that the
company's stock is not currently registered with the Securities and
Exchange Commission. DATASOURCE: HE-5 Resources, Corp. CONTACT:
http://www.he-5resourcescorp.com/; or Call Investor Relations,
(514) 883-6388
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