Fortis Mining Secures World Class Kazakhstan Potash Deposits
March 24 2011 - 10:34PM
Business Wire
Fortis Mining (ASX:FMJ) www.fortismining.com.au is pleased to
announce that it has finalised negotiations to fully secure the
rights to purchase two significant potash salt deposits in
west-Kazakhstan.
The Chelkar and Zhiliyanskoe Salt Deposits have an exploration
target range of 6.5 – 6.6 billion tonnes of potassium deposits,
making them amongst the largest potash salt deposits in the
world.
The Chelkar Salt Deposit also has an exploration target range of
102 – 105 million tonnes of magnesium deposits.
Fortis Mining has agreed to acquire the rights for a total cost
of $US260 million. The payments will be made in three tranches -
$US6 million has already been paid, a second installment of $US24
million is due on April 18, with the remainder ($230 million) due
on July 7.
The acquisition of the assets has been secured through a variety
of share sale agreements that will result in Fortis acquiring 75
per cent of the Hong Kong based Ji'an Resources – which owns the
two deposits through a number of indirect shareholdings.
The acquisition of Ji'an Resources involves the transfer of 40
million company shares in Fortis and $1 million cash payment.
The Executive Chairman of Fortis Mining, Jitto Arulampalam, says
today's announcement illustrates that Fortis Mining will soon
become a major mining company on the world stage.
"Fortis Mining is very excited by the future prospects of these
two mines to service the growing demand for potash ore, especially
in China and India which are geographically located near
Kazakhstan," he said.
"Fortis is undertaking further due diligence on the deposits,
but we are confident that there is only limited investment and time
needed to make the first of these deposits – the Chelkar Salt
Deposit – operational." he said.
"Already Fortis has shown in a reasonably short period of time
that it can secure world class assets and reward its shareholders.
We have a range of funding options available to complete the
transaction of securing these two mines," Mr Arulampalam said.
While completion of the transaction remains subject to
shareholder and regulatory approval, Mr Arulampalam was confident
that such approvals would be forthcoming over the coming
months.
For more information please refer to the ASX announcement or
contact:
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