Opta Minerals Inc.

Opta Minerals Inc.

July 09, 2008 17:00 ET

Opta Minerals Continues European Expansion

WATERDOWN, ONTARIO--(Marketwire - July 9, 2008) - Opta Minerals Inc. (Opta) (TSX:OPM) announced today that it has acquired 67% of the outstanding common shares of MCP Mg-Serbien SAS ("MCP") of France. The transaction includes an option to acquire the remaining 33% minority interest on similar terms. For fiscal 2007 MCP recorded revenues of approximately US $6.3 million selling ground magnesium products. Opta has also secured an option to purchase a majority position in an associated company located in Europe which is focused on the production of magnesium ingots.

The acquisition continues to expand Opta's business capabilities into Europe and complements existing operations which supply a wide range of magnesium based desulphurization products in the United States, Canada and Europe from operations in Indiana, Ontario and Slovakia.

MCP operates its production facility in Romans-sur-Isere, France and employs approximately 21 people. The plant is currently operating at one-third capacity providing ample room for future expansion. The addition of MCP further increases Opta's position in the industrial minerals business and further expands its current position as a key service provider to the steel industry.

David Kruse, President and CEO of Opta Minerals Inc. commented "This transaction is a continuation of the global expansion of Opta Minerals. MCP sells magnesium products to a variety of industries in Europe including integrated steel mills and provides Opta Minerals with an entirely new customer base within the European Union. The facility in Romans-sur-Isere will complement our facilities in Walkerton Indiana, Waterdown Ontario and Kosice Slovakia. We will continue to provide unparalleled customer service and quality products to an entirely new customer base in Europe as we position ourselves for growth in both the industrial minerals and abrasive markets in that region."

The purchase price was US $1.1 million in cash. The acquisition is expected to be immediately accretive to Opta Minerals earnings.

About Opta Minerals Inc.

Opta Minerals Inc. is a vertically integrated provider of custom process optimization solutions and related materials for use primarily in the steel, foundry, loose abrasive cleaning, roof shingle granules and municipal water filtration industries. With its head office in Waterdown, Ontario, the Company also has production and distribution facilities in Ontario, Quebec, Louisiana, South Carolina, Virginia, Maryland, Ohio, Indiana, Michigan, New York and Kosice Slovakia and one of the broadest product lines in the industry.

Forward-Looking Statements

Certain statements included in this press release may constitute "forward-looking statements". These forward-looking statements include, but are not limited to references to business strategies, competitive strengths, goals, capital expenditure plans, business and operational growth plans and references to the future growth of the business. These forward looking statements are based on certain assumptions and analyses made by the Company in light of its experience and its interpretation of current conditions, historical trends and expected future developments as well as other factors that the Company believes are appropriate in the circumstance. However, whether actual results and developments will agree with expectations and predications of the Company is subject to many risks and uncertainties including, but not limited to; general economic, business or market risk conditions; competitive actions by other companies; changes in laws or regulations or policies of local governments, provinces and states as well as the governments of United States and Canada, many of which are beyond the control of the Company. Consequently all forward-looking statements made herein are qualified by these cautionary statements and there can be no assurance that the actual results or developments anticipated by the Company will be realized.

Contact Information

  • Opta Minerals Inc.
    David Kruse
    President and Chief Executive Officer
    (905) 689-7361
    (905) 689-3915 (FAX)
    Opta Minerals Inc.
    James Wilson
    Chief Financial Officer and Secretary
    (905) 689-7361
    (905) 689-3915 (FAX)
    Email: Investor-relations@optaminerals.com
    Website: www.optaminerals.com