Union Resources Limited
14 October 2005
Commencement of trading on the Alternative Investment Market of the London Stock
The Directors of Union Resources Limited ('Union' or the 'Company'), an
Australian Stock Exchange ('ASX') listed company specialising in the early
investment in strategic mineral resource projects, announces today that its
shares (ASX Code: UCL) and both classes of listed options (ASX Codes: UCLOA and
UCLOB) have been admitted to trading on the Alternative Investment Market
('AIM') of the London Stock Exchange.
Union has sought a dual listing on AIM in order to facilitate new opportunities
in fund raising and investment marketing and to provide additional liquidity to
its UK and European-based shareholders.
Institutional investors based in the UK have been significant participants in
Union's recent capital raisings and Union is receiving increasing interest from
such investors as it progresses the development of the Mehdiabad Zinc Project in
Iran. The AIM quotation will help attract and facilitate investment in Union by
The Company's fully paid ordinary shares and listed options will continue to be
listed on the ASX and, following admission, all of the Company's issued ordinary
shares and listed options will also be capable of being traded on AIM.
Westhouse Securities LLP is acting as the Company's Nominated Adviser and
Union's shares are traded on AIM under the symbol URL and its listed options are
traded on AIM under the symbol URLA and URLB.
Rob Murdoch, Managing Director of Union, commented: 'As a large percentage of
our share capital is already held by UK based investors, an AIM quotation was a
logical step for the Company. Given AIM investors' interest in the mining
sector, we anticipate that the dual listing will facilitate new opportunities in
fund raisings and investment marketing as well as provide additional liquidity
to our existing UK based shareholders.'
For further information contact:
Union Resources Limited (Tel: 00 61 7 3833 3833)
Rob Murdoch - Managing Director
Westhouse Securities LLP (Tel: 020 7601 6100)
Union has been quoted on the Australian Stock Exchange since 1983. Its market
capitalisation is approximately AUS$51.3 million (approximately £21.9 million).
Union specialises in the early investment in strategic mineral resource
projects. It aims to become a major zinc producer through the systematic
exploration and development, in association with local partners in Iran, of the
Mehdiabad Zinc Project ('the Project'), in central Iran, a zinc resource with
associated lead and silver.
The Mehdiabad Project ('Project') is located in Central Iran, 80 kilometres
south east of the Provincial Capital of Yazd and approximately 550 from Tehran.
The Project is a Joint Venture between Union and private and government Iranian
interests, operating through Mehdiabad Zinc Company (MZC).
The Project is held under a Discovery Certificate (DC) issued in 2004 in
accordance with Iranian Mining Laws.
A Bankable Feasibility Study (BFS) being undertaken by Aker Kvaerner Australia
(AKAU). A project review report was issued by AKAU in March 2005 setting out a
work program that needed to be completed for the project to be bankable. Current
activity is focused on that work program. A Provisional BFS report is expected
in January 2006 and a final BFS report when all the licensing and project
verification is in place.
Mehdiabad is a giant Early Cretaceous zinc-lead and silver deposit, occurring
within a broad north-south orientated half graben basin. Zinc occurs as both
sulphides and as oxides. About 50,000 metres of diamond core drilling has been
carried out to determine a 'Measured and Indicated Resource'. The deposit is
expected to be extracted by open cut mining extending over a life of 30 years.
Recent drill intersections within the zinc resource include a best intersection
of 67 metres @ 11.2 % Zn, 2,3 % Pb and 79 g/t Ag. Other very thick
intersections encountered include 67 metres @ 11.2 % Zn, 80 metres @ 5.5 % Zn
and 68 metres @ 5.8% Zn. Additional high grade intersections include 27 metres
@ 20.8% Zn, 18 metres @ 11.6 % Zn, 19 metres @ 9.4% Zn, Separate lead and copper
mineralisation has been encountered on the western side of the proposed open
pit, including 4 metres @ 5.4 % Pb and 82 metres @ 2.38% Cu. The in ground
resources are in the Order of 15 million tones of zinc, 5 million tones of lead
and 350 million ozs of silver, making Mehdiabad a world class base metal
The Mine Plan, expected to be completed by November when the resource block
model and geotechnical studies are expected to be completed.
Metallurgical test-work has indicated that the optimum processing route is use
acid leaching and solvent extraction to recover the zinc from the oxide ore and
also from the sulphide concentrates. The project will produce SHG Zinc ingots
and lead-silver concentrates.
The recoveries over the deposit are quite variable due to some of the zinc
occurring as complex zinc manganese minerals. To determine a recovery for each
block in the block model hundreds of separate zinc recovery leach tests are
currently being carried out.
Extensive bench scale, locked cycle and pilot plant studies have been completed
on the oxide ore and bench scale testing is also completed on the sulphide ore.
Locked cycle and comminution testing on the sulphide ore remain to be completed
and a pilot plant study is not expected to be required.
As information on the various testwork become available AKAU is progressively
refining the 'Process Design' and 'Process Flowsheets' for both the oxide and
the sulphide circuits. The final dimensioning of the oxide plant and the
sulphide plant will occur when the mine production schedule is finalised.
However, the development of the Mehdiabad Zinc Project will involve the ramp up
of zinc production from an initial level of between 100,000 - 200,000 tonnes per
annum to 500,000 tonnes per annum over a period of time. At full production the
project will produce up to 5% of the world zinc.
The project is located in an arid environment and hence water is a major
constraining issue for development. Whilst fresh water, grey water and aquifer
options are all available, a firm allocation is not expected from the licencing
authority until after the Provisional BFS is completed. The other infrastructure
needs of the project seem to be all readily available.
A sustainable development work program is being performed and will culminate in
the production of an ESIA, to comply with World Bank and IFC Specific Guidelines
in achieving a world's best environmental practice. The key environmental issue
is that the project is located within a fauna reserve. Mining operations are
permitted within the reserve. However, a processing plant requires special
Further information on the project can be obtained from
If existing shareholders wish to trade their ordinary shares or listed options
on AIM they need to first move their holding to the Company's Jersey share
registry. This process requires an appropriate account to be set up with a
broker suitably qualified and experienced to deal in AIM securities and
notification to be given to your Australian broker (for broker sponsored CHESS
holdings) or the Company's Australian share registry (for issuer sponsored
holdings), which will supply the holder with a removal request form. Once the
removal request form is fully completed and signed, the Australian Registrar
would verify and confirm that the request can be processed. The Australian
Registrar would then send a copy of the removal form to the Jersey Registrar for
processing. Once this process has been completed, the ordinary shares or listed
options will be held on the Company's Jersey share register. Shareholders have
the option of holding their shares and listed options through CREST or in
Share and options pricing and trading results may be checked at www.asx.com.au
for ASX trading and www.londonstockexchange.com for AIM trading.
Further information on the AIM admission can be found in the 20 business day
Pre-Admission Announcement and Appendix, both of which have been submitted to
the London Stock Exchange in connection with Admission and which are available,
together with further information on www.unionresources.com.au.
This information is provided by RNS
The company news service from the London Stock Exchange