Canada Fluorpsar Completes Initial Investment by Arkema
June 27 2011 - 2:22PM
Marketwired Canada
Canada Fluorspar Inc. ("CFI" or the "Company") (TSX VENTURE:CFI) and Arkema
("Arkema") (PARIS:AKE) are pleased to announce the completion of the previously
announced initial investment by Arkema in CFI.
This initial investment amounted to CDN$15.5 million and consisted of Arkema
acquiring a 9.9 percent interest in CFI through the issuance of 10.3 million
common shares from treasury at a price of $0.75 per share and 10.4 million
subscription receipts at a price of $0.75 per subscription receipt, representing
a further 10.0 percent of the common shares on conversion (a total of 19.9 per
cent on a when-converted basis). The investment of CDN$7.85 million received
from the purchase of subscription receipts has been placed in escrow to be
released to CFI upon the closing of the subsequent investment in a new
partnership described in the press release of June 15, 2011.
Arkema's second investment tranche of CDN$68.0 million will be funded into the
new partnership to be owned equally by CFI and Arkema, and which is expected to
be closed in August, 2011. As part of the new partnership, CFI will contribute
the mining rights and permits related to the Blue Beach mine, Tarefare mine, the
mill facilities and the tailings pond needed to produce fluorspar. Upon
completion of the subsequent investment, Arkema's total investment in CFI will
amount to CDN$83.5 million.
CFI is also pleased to announce that Mr. Richard Rowe and Ms. Lisa Brody,
nominees of Arkema, have both been appointed to the board of directors of CFI
effective today.
Richard Carl, Executive Chairman of CFI commented, "With the closing of Arkema's
initial investment in CFI, we are now well capitalized to commence our efforts
in the reopening of our St. Lawrence fluorspar project." Richard Carl also
noted, "On behalf of the management team and the Board of Directors, I would
like to welcome Ms. Brody and Mr. Rowe as new members of the Board of
Directors."
About the Company
The Company is a specialty mineral resource company engaged in the development
and production of fluorspar deposits at its property located in St. Lawrence,
Newfoundland, Canada, and is moving forward to reactivate existing underground
fluorspar mines, expand an existing mill, construct a new, environmentally-sound
Tailings Management Facility and build a new deep-water marine terminal in the
outer St. Lawrence Harbour for the export of fluorspar concentrate product.
For more information please see: www.canadafluorspar.com
Cautionary Note and Forward-looking statements
This press release contains forward-looking statements which include, but are
not limited to: statements regarding the results and projections contained in
the preliminary feasibility study of the project at St. Lawrence, establishment
of the Partnership, conversion of subscription receipts to common share, receipt
of TSX-V approvals, completion of definitive agreements, and outlook,
expectations, opinions, forecasts, projections, guidance or other statements
that are not statements of fact. Although the Company believes that the
expectations reflected in such forward-looking statements are reasonable, it
cannot give any assurance that such expectations will prove to be correct.
Results of the Company may be affected by a variety of variables and risks
associated with mining development including: loss of market, volatility of
commodity prices, currency fluctuations, imprecision of reserve estimates,
environmental risks, competition from other producers, ability to access
sufficient debt and equity capital from internal and external sources, ability
to generate sufficient cash flow to meet its current and future obligations,
regulatory approvals affecting construction and mining operations. Such
forward-looking statements are also based on a number of assumptions which may
prove to be incorrect, including, but not limited to, assumptions about the
following: the availability of financing for exploration and development
activities; the estimated timeline for the development of the project at St.
Lawrence, the supply and demand for, and the level and volatility of the price
of fluorspar, the assumptions on which resource estimates are based, the receipt
of necessary permit, market competition, ongoing relations with employees and
impacted communities, and general business and economic conditions. In addition,
the operating and capital costs in the preliminary feasibility study were
developed to be reasonable estimates within industry benchmarks. There is no
certainty that the results of the preliminary feasibility study will ever be
realized. Should one or more of the risks or uncertainties involved in
forward-looking statements relating to the preliminary feasibility study
materialize, or should the assumptions underlying the preliminary feasibility
study prove incorrect, actual results of the preliminary feasibility study may
vary materially from those anticipated, believed, estimated or expected.
Accordingly, readers should not place undue reliance on forward-looking
statements.
The Company's forward-looking statements are expressly qualified in their
entirety by this cautionary statement and are made as of the date of this news
release. Unless otherwise required by applicable securities laws, the Company
does not intend nor does it undertake any obligation to update or review any
forward-looking statements to reflect subsequent information, event, results or
circumstances or otherwise.
Califfi Capital (TSXV:CFI)
Historical Stock Chart
From Jul 2024 to Aug 2024
Califfi Capital (TSXV:CFI)
Historical Stock Chart
From Aug 2023 to Aug 2024