The Asia Miner

SEP-OCT 2014

The ASIA Miner - Reporting Important Issues to Mining Companies in the Asia Pacific Region

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20 | ASIA Miner | September/October 2014 ALTAN Rio Minerals has closed a private placement with the European Bank for Reconstruction and Development (EBRD) for gross proceeds of $999,960. Following closing of the placement EBRD holds 18.7% of the issued and outstanding common shares of the company. The EBRD has 61 shareholders comprising 59 governments and two international institutions, and invests in 29 countries from central Europe to central Asia. EBRD is the largest institutional investor in Mongolia. Mongolia became an EBRD country of operations in October 2006 and since the beginning of its operations in Mongolia, the EBRD has commit- ted through debt and equity investments more than US$ 684 million to the Mongolian private sector through 52 projects in sectors ranging from banking to manufacturing and from mining to agribusiness. Commenting on the placement, Altan Rio's president and CEO Evan Jones said: "We are delighted to have attracted a partner of the calibre of EBRD. As shareholders will be aware, the ability for junior explorers such as Altan Rio to raise capital to fund ongoing activities is somewhat limited in the current market environment. As such, by entering into this agreement, Altan Rio has substantially reduced fnancing uncertainty." The private placement is the frst tranche of a potential investment in the company by EBRD of a minimum of $5 million and a maximum of $10 million under a subscription agreement and framework agreement between the parties. Altan Rio, founded in 2007, is based in Vancouver, Canada. Using innovative exploration targeting techniques and leveraging long-term in-country experience, the company explores gold and copper proj- ects in Mongolia. The company's licence holdings in Mongolia, which total more than 103,341 hectares, contain signifcant zones of newly identifed primary gold and copper mineralization across a very large area of unexplored ground. The Chandman-Yol property is in mountainous basin and range coun- try in western Mongolia, about 1050km west of Ulaanbaatar. At the Takhilt target a second phase of drilling would target potentially shal- low resources along the southern edge of the IP domain, in contact with the copper-gold bearing granite system, a compelling target that is more than 1km long. Further drilling is also warranted at the Ovoot target, though of lesser priority that Takhilt, to test areas of coincident geochemical and IP-magnetic anomalies. Khavchuu is an early-stage exploration prospect 10km west of Centerra Gold's Boroo mine in northern Mongolia. Altan Rio has an option to acquire 100% of the project subject to a 2.105% NSR royalty but is currently re- negotiating the terms of the fnal payment. The company has allowed its licences on the Onon project in northeast Mongolia to expire. METALLURGICAL test work has been carried out on samples from Ha- ranga Resources Selenge Iron Ore Project. The company expected to receive initial results from this work by the end of August. Bulk samples were delivered to the ALS Technical Centre in Wangara, Western Australia, by the end of the second quarter. The frst phase test work at laboratory scale was undertaken as per the scope of work in accordance with an optimized fowsheet recommended by an indepen- dent expert hired by Haranga. A program of additional drilling with a particular emphasis on high grade has been approved by the Mineral Resources Authority of Mon- golia and the General Agency for Specialized Inspection. The company has been working on the environmental rehabilitation work plan for the exploration season to be approved by the local government prior to commencement of drilling activities. The frst target of this campaign is associated with the Bayantsogt magnetite skarn hill and lies within the structural corridor that contains the major iron ore deposits in the region. This target is in the licence area where the JORC-compliant resources are delineated. Target two is an outcrop that extends to 700 metres at the ground surface and suggests a signifcant mineralized area. This target is within two exploration licence areas at Selenge. Target three is another poten- tial high grade target. There are currently 254.4 million tonnes of overall resources at Selenge at a grade of 17.2% iron. This comprises 126.4 million measured tonnes @ 17.6% iron, 127.4 million indicated tonnes @ 16.8% iron and 550,000 inferred tonnes @ 16.7% iron. These re- sources are spread over the Dund Bulag, Bayantsogt and Undur Ukhaa deposits. Haranga believes recent amendments to the Minerals Law in Mon- golia have greatly improved the country's mining environment. The key relevant changes are: • Restoration of issuance of new mineral exploration licences. The law banning the issue of new licences enacted on December 1, 2012, has been nullifed by this amendment. • The existing mineral exploration licence can be extended by an ad- ditional three years from its ninth year until the 12 th year. • A new classifcation of a mineral resource and reserve shall be ap- proved which should introduce internationally accepted guidance such as a JORC code. • According to the implementing law to the new amended law, pre-mining agreements made under the previously existing Minerals Law shall remain valid under the contract terms. • The period of eligibility to submit a feasibility study report has been prolonged to one year from the date granting a mining licence. Test work on Selenge iron ore samples Conducting feld work on an Altan Rio Minerals property in Mongolia. EBRD takes Altan Rio stake

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