SOURCE: EMED Mining Public Limited

February 23, 2015 12:50 ET

EMED Mining Public Limited ("EMED" or the "Company") Operations Update

NICOSIA, CYPRUS--(Marketwired - Feb 23, 2015) -  EMED Mining Public Limited (TSX: EMD) (AIM: EMED), the Europe-based minerals development and exploration company is pleased to update the market regarding continued progress at the Rio Tinto Copper Project ("Proyecto Riotinto").

Having obtained final permitting (as per the announcement dated 23 January 2015) the Company has continued to focus on further developing onsite operations ahead of commencing mining and processing operations during the third quarter of 2015.

Financing

In December 2014, the Company agreed a US$30M unsecured bridge loan ("Loan") with its three largest shareholders, Trafigura Beheer BV ("Trafigura"), Orion Mine Finance (Master) Fund I LP ("Orion") and Hong Kong Xiangguang International Holdings Limited ("Hong Kong Xiangguang"), an affiliate of Yanggu Xiangguang Copper Co. Limited ("XGC") (Trafigura, Orion, and XGC being the "Lenders").

The purpose of the Loan was to allow continued project development while a financing package is finalised in order to complete Phase 1 development and a potential expansion project (as detailed below).

The Company's current cash position is approximately EUR 10M with a further US$6M available under the Loan, subject to the consent of the Lenders. The Company is confident that its current cash position of EUR 10m is sufficient to last through the first quarter of 2015 and potentially beyond with the Company maintaining the flexibility to reduce planned expenditures if required. The Company presently expects that this is sufficient to complete negotiations of the global financing package without project delays.

The latest capital forecast to complete Phase 1 development indicates the potential for up to US$50M savings previously reported by the Company are likely to be achieved.

The Company is also pleased to announce that Mr. John Leach, EMED's Chief Financial Officer, having taken a leave of absence for health reasons (as announced by the company on 15 December 2014) returned to work in January as anticipated after the successful completion of treatment.

Click on, or paste the following link into your web browser, to view the associated PDF document:
http://www.rns-pdf.londonstockexchange.com/rns/6511F_1-2015-2-23.pdf

Contact Information

  • EMED Mining
    Roger Davey/Alberto Lavandeira
    +34 959 59 28 50

    Canaccord Genuity
    Ryan Gaffney/Henry Fitzgerald-O'Connor/Neil Elliot
    +44 207 523 8000

    Brandon Hill Capital
    Oliver Stansfield
    +44 203 463 5061

    Walbrook PR
    Nick Rome
    +44 207 933 8783