Amalfi Capital Corporation

March 02, 2010 14:21 ET

Amalfi Capital Corporation Announces Additional Information Regarding the CDR Minerals Inc. Laurel Fork Report

CALGARY, ALBERTA--(Marketwire - March 2, 2010) - Amalfi Capital Corporation (TSX VENTURE:ALI.P) ("Amalfi" or the "Corporation") announces additional information, as requested by the Investment Industry Regulation Organization of Canada, regarding the technical report (the "Laurel Fork Report") dated January 20, 2010 with respect to the Laurel Fork (Coty) mining project (the "Laurel Fork Project") of CDR Minerals Inc. ("CDR") previously disclosed by the Corporation in its press release dated February 22, 2010. The Laurel Fork Report was prepared by Phillip Lucas, P.E., P.L.S. of Summit Engineering, Inc. ("Summit") in accordance with National Instrument 43-101 ("NI 43-101").

The Laurel Fork Report

A full text version of the Laurel Fork Report has been filed on SEDAR and is available at

The Laurel Fork Report is a technical report which constitutes a feasibility study for the purposes of NI 43-101. According to the Laurel Fork Report, Summit reviewed the results of a detailed economic cash flow analysis of the mineral resources for the Laurel Fork Project. This analysis considered the following items:

  • Start up capital;
  • Equipment;
  • Production;
  • Sales related costs including royalties and production taxes;
  • Operating costs such as wages, fuel, blasting, and equipment costs;
  • Maintenance capital;
  • Delivery costs including trucking and rail loadout costs; and
  • General and administrative costs.

The analysis indicates that the Laurel Fork Project, from its anticipated inception in November 2010 through December 2012, will earn approximately $33.6 million in cumulative net cash from operations. The amount of capital required to start up the mine is approximately $4.3 million. Operations are projected to begin in November 2010 at 10,000 tons per month and increase up to 80,000 tons per month by August 2011 and 100,000 tons per month by August 2012. Once full production is achieved, mining costs are expected to average approximately $45 per ton.

Qualified Person

Phillip Lucas, P.E., P.L.S., of Summit Engineering, Inc., a Professional Engineer in the States of Kentucky, West Virginia, Virginia and Arkansas, a member of the Society of Mining Engineers of Kentucky, is the author of the Laurel Fork Report and an independent Qualified Person in accordance with the requirements of NI 43-101. He has reviewed and approved the technical disclosure in this news release.

Business Combination with CDR Minerals Inc.

As previously announced, Amalfi intends to complete an arm's length business combination (the "Business Combination") with CDR, which if completed, is expected to constitute Amalfi's qualifying transaction for purposes of Policy 2.4 of the TSX Venture Exchange Inc. ("TSX Venture") Corporate Finance Manual. The parties intend to complete the Business Combination by way of a three-cornered amalgamation (the "Amalgamation), wherein a wholly-owned subsidiary of Amalfi will amalgamate with CDR and continue as one company under the Business Corporations Act (Ontario) ("Amalco"). 

As indicated above, completion of the Business Combination is subject to a number of conditions, including but not limited to, TSX Venture acceptance and shareholder approval. The Business Combination cannot close until the required shareholder approval is obtained. There can be no assurance that the Business Combination will be completed as proposed or at all.

Investors are cautioned that, except as disclosed in the Information Circular of the Corporation to be prepared in connection with the Business Combination, any information released or received with respect to the Business Combination may not be accurate or complete and should not be relied upon. Trading in the securities of the Corporation should be considered highly speculative.

Except for historical information contained herein, this news release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially. Neither Amalfi nor CDR will update these forward-looking statements to reflect events or circumstances after the date hereof. More detailed information about potential factors that could affect financial results is included in the documents filed from time to time with the Canadian securities regulatory authorities by Amalfi and CDR.

The securities of Amalfi being offered have not been, nor will be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from U.S. registration requirements. This release does not constitute an offer for sale of securities in the United States.

Neither TSX Venture nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Amalfi Capital Corporation
    Raymond Ludwig
    (403) 585-0450
    CDR Minerals Inc.
    James Hannah
    (416) 861-8775