Union Resources Limited
02 December 2005
For immediate release: 2 December 2005
UNION RESOURCES LIMITED
Exploitation Licence granted to Mehdiabad Zinc Project
BRISBANE 2 DECEMBER 2005: Union Resources Limited (Union) is pleased to announce
that the Ministry of Mines and Industry (Ministry) in Iran has granted an
Exploitation Licence ('EL'), number 60/101711 for the Mehdiabad Zinc Project.
The EL has been granted in the name of IMPASCO, Union's Iranian Government
partner in the project. Under the agreements in place, IMPASCO is obliged to
transfer the EL to Mehdiabad Zinc Company (MZC) upon delivery of the Feasibility
Study Report, which is scheduled to occur early next year.
The conditions attached to the licence state that it is transferable after
obtaining a clearance that the transferor (in this case IMPASCO) has met its
statutory obligations to the Ministry.
The EL has been granted for 25 years, with a maximum construction period of five
years before mining is to commence.
The mining should be in accordance with a development plan approved by the
Ministry and after five years, production should be not less than 900,000 tonnes
per annum of ore.
The licence is to mine lead and zinc. However, if other minerals are
encountered the Ministry must be informed and the development plan altered.
If the owner closes the mine for more than six months without the granting of
the Ministry's approval then the EL can be forfeited.
All regulations as set out in the Iranian Mining Act have to be followed, and
these regulations are similar to most other countries.
The EL covers an area of 45sq kms around the mine site, which Union considered
is adequate for the mine and associated infrastructure.
The parties involved with the project will consider the Feasibility Study Report
being prepared in January 2006 with respect to:
(a) The transfer of the EL from IMPASCO to MZC;
(b) The entering into infrastructure agreements for the supply of water and
electricity to the project by MZC; and
(c) The advertising of pre-qualifications to bid tender documentation for the
plant engineering and construction by MZC.
Following completion of the Feasibility Study Report, Union will continue to
work to produce a Bankable Feasibility Study.
For further information:
Union Resources Limited (Tel: 00 61 7 3833 3833)
Rob Murdoch - Managing Director
Westhouse Securities LLP (Tel: 020 7601 6100)
Bankside Consultants (Tel: 020 7367 8888)
This information is provided by RNS
The company news service from the London Stock Exchange