SOURCE: Turkpower

January 31, 2011 08:32 ET

TurkPower Corporation Announces Iron Ore Project Update

NEW YORK, NY--(Marketwire - January 31, 2011) - TurkPower Corporation (OTCBB: TRKP) (the "Company") today announced an update on its purchase of the iron ore mine. The Company is optimistic to complete the purchase of an initial 20 to 25% of the mine within the month of February. Last financing and payment details are being negotiated with financial institutions and the seller. The Company will inform about the total purchase price when the transaction has been completed. The down payment made in June 2010 will be deducted from the purchase price, and the larger part of the balance will be paid from the profits of the mine. The Company intends to exercise its option and purchase up to 35 to 50% of the mine within Q1 2011.

The iron ore mine is an open pit summer mine, which can be operated from April to October and can produce up to 500,000 metric tons of iron ore per season. According to a two-year feasibility study conducted in 2008 and 2009, the mine has reserves in excess of 20,000,000 metric tons for a net value of $2bn based on current market price of approximately $175.00 per metric ton of 58 - 62% grade iron ore. The feasibility study was conducted by one of the world's leading mining companies and is based on over a thousand test drillings and 3D several seismic studies. The mine will be operational as early as April 2011 and has more than 100,000 metric tons of iron ore piled up which can be sold with commencement of operations. The Company expects the mine to sell up to 200,000 tons of iron ore in 2011.

The Company's Chairman, Ryan E. Hart, stated: "The iron ore mine offers a great opportunity for TurkPower and its shareholders. The purchase will add substantial assets to the company and allows for predictable cash flow starting as early as April 2011. We intend to acquire up to 35 to 50% of the mine in Q1 of 2011, and in addition are looking at other very promising iron ore mines in Turkey. Adding operational mines with reserves not only increases the Company's balance sheet and free cash-flow, but also spreads the Company's risks and carries the costs for its large and very lucrative energy mandates for coal, wind and hydro power plants."

The Company would like to caution its investors that while it is very excited and optimistic about the iron ore project and other similar large projects, there remain uncertainties and the Company will not be compensated for its efforts until the transaction for the mine is completed.

About TurkPower Corporation
TurkPower Corporation is a Turkish-American consulting and service operations firm with a strong focus on the booming Turkish energy market. TurkPower offers its domestic and international clients consulting services and acts as a full service operator for wind, hydro, solar, coal and geothermal energy parks in Turkey. In addition to its energy business, TurkPower aims at becoming a large player in the Turkish mining industry by acquiring and consolidating operational mines with proven reserves, utilizing economies of scale to increase returns.

Safe Harbor Statement
The statements by our officers, and other statements regarding optimism related to the business, consulting, service operations, expanding exploration and development activities and other statements in this press release are forward-looking statements within the meaning of the Securities Litigation Reform Act of 1995. Such statements are based on current expectations, estimates and projections about the Company's business and subject to successful financing. Words such as expects, anticipates, intends, plans, believes, sees, estimates and variations of such words and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and involve certain risks and uncertainties that are difficult to predict. Actual results could vary materially from the description contained herein due to many risk factors that affect the industry the Company operates in and other risk factors listed from time to time in the Company's Securities and Exchange Commission (SEC) filings under "risk factors" and elsewhere.

Contact Information

  • Contact:

    TurkPower Corporation
    100 Park Avenue
    New York, New York 10017
    T 212-984-0628
    F 212-880-6499