Robex Resources Inc.

Robex Resources Inc.

October 09, 2014 08:00 ET

Robex Resources Inc. is Suspending their Operations at the Nampala Mine

QUEBEC CITY, QUEBEC--(Marketwired - Oct. 9, 2014) - Robex Ressources Inc. ("Robex" or the "Company") (TSX VENTURE:RBX)(FRANKFURT:RB4) is suspending their operations at the Nampala mine for an undetermined amount of time.

Considering i) that new capital investments are necessary to make changes to the Nampala mill; ii) the time for fabrication, delivery and installation of necessary equipment for a profitable operations of the Nampala mine iii) the decrease in the price of gold; and iv) the risks and costs of surcharges related to geopolitical and health risks including the proximity of Ebola outbreaks, Robex's Board of Directors decided, during a special meeting of the Board of Directors, held on October 7, 2014, to suspend ore extracting activities in the Nampala pit. Robex will thus reduce the local and expatriates workforce to a minimum at the Nampala mine.

The Company's Board of Directors relied on recommendations from an independent expert report performed by the consulting firm Soutex Inc. which concluded that material changes have to be made to the mine installations to ensure profitability. The suspension of activities is necessary to preserve the mineral resources, reduce fixed costs and implement the action plan and recommendations of the expert report which aims to increase production to 4,000 t / d initially and 6,000 t / d at a later stage.

Several changes to the Nampala mill are recommended including:

  • replace the elution circuit for a Zadra type system under pressure;

  • add a ball mill to process the coarse ore and add two to four CIL tanks.

  • increase water resources;

  • Change certain pieces of equipment such as the vibrating screens ahead of the rubbler.

The proposed improvements represent investments of around 12 million CAD. In order to make these improvements and achieve the goal of 4000 t / d Robex is currently seeking funding.

During the period that the activities are stopped, the Malian employees and expatriate team will be laid off except for the teams necessary to ensure the maintenance of the premises and equipment as well as the security of the site. However, Robex will continue to operate the gold room to extract the gold accumulated in the carbon from the CIL tanks. The activities at the head office in Quebec are maintained and employees remain in office.

Robex's Board of Directors also approved the creation of a revitalization committee with a mandate to prepare a recovery plan and business continuity during the period of suspension of operations at the mine. The revitalization committee must report to the Board no later than October 24, 2014 to determine how the upgrades planned and ongoing operations could be funded and to identify new sources of capital.

About Robex Resources Inc.

ROBEX is a Canadian exploration and mine development company, whose shares trade in Canada on the TSX Venture Exchange (symbol: RBX) and in Germany at the Frankfurt Stock Exchange (Deutsche Borse AG, symbol: RB4). Robex currently holds eight exploration permits all located in Mali in West Africa. Mali is currently the third largest producer of gold in Africa.

This press release contains statements that may constitute "forward-looking information" or "forward-looking statements" as set out within the context of security law. This forward-looking information is subject to many risks and uncertainties, some of which are beyond Robex's control. The actual results or conclusions may differ considerably from those that have been set out, or intimated, in this forward-looking information. There are many factors which may cause such disparity, especially the instability of metal market prices, the results of fluctuations in foreign currency exchange rates or in interest rates, poorly estimated reserves, environmental risks (stricter regulations), unforeseen geological situations, unfavourable extraction conditions, political risks brought on by mining in developing countries, regulatory and governmental policy changes (laws and policies), failure to obtain the requisite permits and approvals from government bodies, or any other risk relating to mining and development. There is no guarantee that the circumstances anticipated in this forward-looking information will occur, or if they do occur, how they will benefit Robex. The forward-looking information is based on the estimates and opinions of Robex's management at the time of the publication of the information and Robex does not assume any obligation to make public updates or modifications to any of the forward-looking statements, whether as a result of new information, future events, or any other cause, except if it is required by securities laws.

The TSX Venture Exchange or its Regulation Services Provider (as defined in the policies of the TSX Venture Exchange) accepts no liability for the authenticity or accuracy of this release.

Contact Information

  • Robex Resources Inc.
    Rodrigue Gilbert
    Head of Communications
    Cellular: (613) 808-7435
    Office: (581) 741-7421