re Investment Plan
June 13 2007 - 3:01AM
UK Regulatory
RNS Number:2556Y
Talvivaara Mining Company Ltd
13 June 2007
The information contained herein is restricted and is not for publication,
release or distribution, directly or indirectly, in or into the United States,
Australia, Canada or Japan or to residents or citizens of Australia, Canada or
Japan.
Talvivaara's Board approves investment plan
for the Talvivaara project development
13 June 2007
Talvivaara Mining Company Ltd ("Talvivaara" or "the Company"), the Finnish
mining company with a primary focus on nickel and zinc, is pleased to announce
that following the successful listing of Talvivaara on the Main Market of the
London Stock Exchange on 1 June 2007 and the offering of shares to institutional
investors (the "IPO"), the Board of the Company approved on 8 June the
investment plan for the development of the Talvivaara mine (the "Talvivaara
Project").
The Company has now completed the expected financing for the Talvivaara Project
(collectively consisting of a $320 million project finance facility and the
#181.9 million net proceeds from the IPO). The investment plan provides the
framework for the deployment of this capital and will enable the Company to
continue the construction of general mine site infrastructure, preparation of
the site for production and acquisition and installation of necessary equipment.
The Company estimates that the capital expenditure programme for the years
2007-2009 will amount to approximately Euro450 million.
At IPO the market capitalisation of Talvivaara was approximately #557 million.
JPMorgan Cazenove Limited was Sponsor, Sole Global Co-ordinator and Bookrunner.
Nordea Bank Plc was Co-lead Manager. The IPO followed the arrangement of the
$320 million project finance facility secured by the Company only five months
after completion of a bankable feasibility study (which contained detailed
estimates of all material capital and operating expenditures expected to be
incurred in connection with constructing and operating the project). The project
finance facility was structured by Standard Bank Plc with Standard Bank Plc,
Societe Generale, HVB and Nordea Bank Plc as mandated lead arrangers.
Commenting on the Board's decision, Pekka Pera, Chief Executive Officer of the
Company said:
"I am pleased with the strong support we received during the recent IPO.
Following approval of the investment plan, we shall be working hard to execute
our plans and continue full scale development of this exciting project".
ENQUIRIES
Talvivaara Mining Company Ltd Tel: +358 20 7129 800
Pekka Pera Tel: +358 40 585 9225
Saila Miettinen-Lahde Tel: +358 40 548 3695
Merlin Tel: +44 207 653 6620
David Simonson
Tom Randell
Maria Suleymanova
NOTES TO EDITORS
Company Overview
* Talvivaara and its subsidiary Talvivaara Project Ltd aims to become an
internationally significant base metals producer with its primary focus on
nickel and zinc using a technology known as bioheapleaching to extract
metal out of low grade ore
* The Company's main activity is the development and exploitation of two
polymetallic deposits, Kuusilampi and Kolmisoppi, in Sotkamo, Finland
(together, the "Talvivaara deposits") using bioheapleaching technology
(the "Talvivaara Project")
> The Talvivaara deposits comprise one of the largest known sulphide
nickel resources in Europe with 266 million tonnes of ore in measured
and indicated resources
> Resources are sufficient to support anticipated production for a minimum
of 24 years, expected to start in late 2008, with an expected annual
nickel output of approximately 33,000 tonnes; the Company has the
potential to provide approximately 2.3% of the world's current annual
production of nickel by 2010
> In addition to the mining of nickel, as by-products of the process, the
mine is also expected to produce zinc (approximately 60,000 tpa), copper
(approximately 10,000 tpa) and cobalt (approximately 1,200 tpa)
> The mine site is situated close to existing energy and transportation
infrastructure
* The Group plans to develop the Talvivaara deposits using bioheapleaching
technology
> Bioheapleaching harnesses locally occurring, live bacteria for the
extraction of metals from ore
> This technology is already widely used for other metals, notably copper
and gold
> During the last two years, the Group has demonstrated the viability of
using the bioheapleaching technology for the extraction of nickel in
large on-site pilot trials
* The Talvivaara orebody is well-suited for open pit mining due to the
thin overburden, favourable resource geometry and a low waste to ore ratio
> The ore has a nickel content of 0.27 per cent. and is well-suited to
bioheapleaching due to both its high sulphide content and its low pH,
which enables rapid leaching with reduced need for chemical catalysis
* The Company has secured a 10-year off-take agreement for 100 per cent.
of its main product output of nickel and cobalt to Norilsk Nickel
* With good infrastructure, progressive mining laws, subsidy policies and
economically and politically stable operating environment and readily
available mining expertise, Finland provides a favourable environment for
operating a mine
This announcement may not be distributed, directly or indirectly, in or into the
United States, Canada, Australia or Japan. This announcement does not constitute
or form part of an offer to sell or issue, or any solicitation of an offer to
buy or subscribe for, any securities referred to herein in the United States or
any other jurisdiction. The securities mentioned herein have not been registered
under the U.S. Securities Act of 1933 as amended (the "Securities Act"), and may
not be offered or sold in the United States (as such term is defined in
Regulation S under the Securities Act) unless they are registered under the
Securities Act or pursuant to an exemption from the registration requirements of
the Securities Act.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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