Canada Fluorpsar Completes Initial Investment by Arkema
June 27 2011 - 2:22PM
Marketwired
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.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Contacts: Canada Fluorspar Inc. Lindsay Gorrill President and
CEO 1-800-823-8095 lgorrill@canadafluorspar.com
www.canadafluorspar.com Spinnaker Capital Markets Inc. Ali Mahdavi
Partner am@spinnakercmi.com
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