Adanac Molybdenum Corporation Provides Strategic Update
January 06 2014 - 7:12AM
Marketwired
Adanac Molybdenum Corporation Provides Strategic Update
SURREY, BRITISH COLUMBIA--(Marketwired - Jan 6, 2014) - Adanac
Molybdenum Corporation ("Adanac" or the "Company")
(TSX-VENTURE:AUA) announces the following strategic update.
Adanac's sole asset is the Ruby Creek Project ("Ruby Creek" or
the "Project"), which comprises an undeveloped primary molybdenum
deposit, located approximately 24 kilometers northeast of Atlin,
British Columbia. Adanac's strategic focus over the past two years
has been to sell all or part of Ruby Creek or Adanac. Adanac
believes that Ruby Creek offers significant investment
potential:
- Ruby Creek is 100% owned, with no carried interests, royalties
or off-take arrangements.
- Ruby Creek is fully permitted for construction and nearly fully
permitted for operation.
- The NI 43-101 compliant May 2009 Resource Statement outlined a
Measured and Indicated resource of 275.4 million tonnes grading
0.067% molybdenum. The 407.9 million pound M&I resource
represents a 38% increase over the 2007 Resource Update.
- The now out-of-date December 2007 Feasibility Study needs to be
updated to reflect this significant 38% increase. Additionally,
molybdenum prices, while currently depressed, have the potential to
improve significantly, including as a result of the increase in oil
and natural gas drilling and pipeline construction. Project
economics hold the potential for other improvements, including the
substitution of liquefied natural gas for diesel to power
operations.
- The May 2009 Resource Statement and December 2007 Feasibility
Study encompass significant amounts of information about drilling,
assaying, metallurgical test work, environmental studies and
permitting, garnered over more than twenty years.
- Metallurgical test results demonstrate that Ruby Creek
molybdenum concentrate will meet or exceed the content
specifications required by toll roasters.
- Ruby Creek is accessible year round via an Adanac-improved dirt
road, and is three hours by road from both Whitehorse, Yukon and
from the port of Skagway, Alaska.
- The Project enjoys strong government and local community
support.
- While Ruby Creek is designed as an open pit, the
Climax/Henderson-style geology and several high-grade drill holes
indicate the potential for further underground development beneath
and/or adjacent to the pit.
Notwithstanding Ruby Creek's significant investment potential,
if no suitable third party investor emerges in the near term, the
Company intends to initiate a process to liquidate its assets and
return net proceeds to Adanac shareholders pursuant to a voluntary
liquidation and dissolution process under the Business
Corporations Act (British Columbia). Such a proposed
liquidation will require the approval of shareholders by a
two-thirds majority vote at a Special Meeting, which Adanac intends
to hold in conjunction with its Annual General Meeting as soon as
is practical subsequent to completion of the annual audit for the
fiscal year ending February 28, 2014.
As outlined above, Adanac believes that the on-going value of
Ruby Creek significantly exceeds the liquidation value.
The Company will provide further updates as they arise.
Additional information about Ruby Creek is available via the Adanac
website at www.adanacmoly.com, including a Corporate Presentation
and a Ruby Creek Overview in the Investors section. Public filings
relating to the Company are available via the Adanac website and on
the SEDAR website at www.sedar.com.
Cautionary Notice: This news release contains
"forward-looking information" within the meaning of applicable
Canadian securities legislation relating to the Ruby Creek Project
including the potential sale thereof or a proposed liquidation of
the Company. Generally, forward-looking information can be
identified by the use of forward-looking terminology such as
"plans", "expects", or "does not expect", "is expected", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates", or
"does not anticipate", or "believes" or variations of such words
and phrases or statements that certain actions, events or results
"may", "could", "would", "might", or "will be taken", "occur", or
"be achieved". Forward-looking information is based on the opinions
and estimates of management at the date the information is made,
and is based on a number of assumptions and subject to a variety of
risks and uncertainties and other factors that could cause actual
events or results to differ materially from those projected in the
forward looking information. Many of these assumptions are based on
factors and events that are not within the control of the Company
and there is no assurance they will prove to be correct. . Although
Adanac believes that the expectations and assumptions on which the
forward-looking information is based are reasonable, undue reliance
should not be placed thereon. Factors that could cause actual
results to vary materially from results anticipated by such forward
looking information include risk factors discussed in the Company's
public filings available at www.sedar.com. Although the Company has
attempted to identify important factors that could cause actual
actions, events or results to differ materially from those
described in forward-looking information, there may be other
factors that cause actions, events or results not to be
anticipated, estimated or intended. There can be no assurance that
forward-looking information will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such information. The Company undertakes no
obligation to update forward-looking information if circumstances
or management's estimates or opinions should change except as
required by applicable securities laws. The reader is cautioned not
to place undue reliance on forward-looking information.
Adanac Molybdenum CorporationLeonard J. SojkaPresident &
Chief Executive
Officer778.578.6834604.755.7187info@adanacmoly.comAdanac Molybdenum
Corporation#204 - 16055 Fraser HighwaySurrey, B.C. V4N
0G2www.adanacmoly.com
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