Canada Fluorspar Inc.

August 11, 2011 13:14 ET

Canada Fluorspar Announces $17 Million Contribution from the Government of Newfoundland and Labrador

TORONTO, ONTARIO--(Marketwire - Aug. 11, 2011) - Canada Fluorspar Inc. (TSX VENTURE:CFI) (the "Company") is pleased to announce a $17 Million contribution to the development of the St. Lawrence Fluorspar Mine from the Government of Newfoundland and Labrador.

The Honourable Kathy Dunderdale, Premier of Newfoundland and Labrador, today announced the $17 million repayable contribution to the Company to set in motion its new plans for the St. Lawrence fluorspar mine and the creation of hundreds of new employment opportunities.

Premier Dunderdale made the announcement at the ribbon cutting and grand opening of the fluorspar mine. The Honourable Susan Sullivan, Minister of Innovation, Trade and Rural Development, and the Honourable Darin King, Minister of Human Resources, Labour and Employment and MHA for Grand Bank, as well as Lindsay Gorrill, President and CEO, and Richard Carl, Executive Chairman, of Canada Fluorspar, and Bernard Roche from Arkema Inc., joined the Premier for the announcement.

"This is a tremendous day for St. Lawrence and the entire Burin Peninsula," said Premier Dunderdale. "After decades of inactivity, I am pleased that my government can help support Canada Fluorspar. Their work at the St. Lawrence fluorspar mine will bring considerable activity to this region both in the form of new jobs and spin-offs for local businesses looking to service the mine's operations. This collective activity will have a net economic impact on this area of close to $380 million."

The Provincial Government's $17 million repayable contribution will help the company construct a deep-water port facility, which will serve as a vital piece of infrastructure at the mine site and enable the company to efficiently export the acid-grade fluorspar.

"Mining is a major contributor to Newfoundland and Labrador's economic and business growth, especially in rural areas like St. Lawrence," said Minister Sullivan. "Mining projects lead to new employment opportunities being created, new homes being constructed, new ventures being developed, and existing businesses being expanded. As a government, under the leadership of Premier Dunderdale we are committed to working with our industry partners such as Canada Fluorspar to unlock the riches that exist in this province and grow our economy."

The re-development of the St. Lawrence fluorspar mine will create a maximum of 370 full-time construction jobs over the next two years. Once Canada Fluorspar begins production, employment is anticipated to be constant with more than 160 full-time positions throughout the 15-year life of the mine.

"This administration has been committed to Canada Fluorspar and the St. Lawrence mine for many years," said Minister King. "It is great to see this working relationship culminate with today's grand opening. It is a partnership that will benefit the community and region for many years to come."

Globally, approximately 5.6 million tonnes of fluorspar are consumed annually, representing a market value of approximately US$2 billion. Fluorspar is used primarily by the chemical industry for refrigerants, foam products, as well as in the manufacturing of aluminum, Teflon, petroleum refinement, glass, medicine, and agriculture.

"Canada Fluorspar acknowledges and appreciates the efforts and commitment of Premier Dunderdale and her Cabinet in supporting our efforts to set in motion the new plans for the fluorspar project at St Lawrence," said Mr. Carl. "Today is the culmination of years of effort on both our parts and it is very gratifying for the company, its stakeholders and employees and the Town of St. Lawrence as we step forward together to make this project a reality."

Mr. Gorrill added to Mr. Carl's comments by expressing the value of the company's partnership agreements in positioning the mine for long-term success.

"Our recently announced partnership with Arkema has been an integral part of reaching this important milestone in the developing of this project," said Mr. Gorrill. "Our current financial structure, that results from our partnership agreements, provides us with the capability to be in St. Lawrence for a long period of time, thereby paving the way for a prosperous, safe and healthy future for all our stakeholders and employees."

Canada Fluorspar Inc. is publicly traded on the Toronto Stock Exchange. In its development of the fluorspar mine in St. Lawrence it is being supported by Arkema Inc., a global chemical company and France's leading chemical producer.

"Arkema is proud to be a part of this partnership with Canada Fluorspar, the Provincial Government of Newfoundland and Labrador, and the people of St. Lawrence for the new fluorspar project that will contribute to the growth of the local and regional economy," said Mr. Bernard Roche, President and CEO of Arkema Inc.. "The support of Premier Dunderdale's administration in contributing $17 million for a deep-water port is instrumental to the success of this far-reaching project and is greatly appreciated by Arkema Inc."

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:

"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."

Contact Information