Union Resources Limited
13 January 2006
For immediate release: 13 January 2006
UNION RESOURCES LIMITED
Iranian Foreign Investment Licence Issued
Union Resources Limited ('Union' or 'the Company') is pleased to announce the
issue of Foreign Investment Licence 39470 to the Company by the Iranian Ministry
of Economic Affairs and Finance.
The licence permits Union, under the full protection of Iran's Foreign
Investment Promotion and Protection Act (FIPPA). to invest up to a total of US$
682 million into the Mehdiabad Zinc Project ('MZP'), including the US$ 10
million invested to date,
The licence also allows the Mehdiabad Zinc Company, the company which holds the
mining licence for the MZP and in which Union is a substantial shareholder, to
export a minimum 75% of the output from the fifth year of operation.
The licence allows dividends, repayments of the principal and payment of
interest to Union from the export revenues and if that amount is insufficient
then from domestic surpluses.
The licence requires Union to continue its investment in accordance with the
needs of the project to remain valid.
The extension of legal protection under FIPPA is subject to the registration of
all portions of the imported capital with the Iranian Organisation for
Investment, Economic and Technical Assistance.
Under Article 8 of FIPPA:
'Foreign Investments under FIPPA shall enjoy all the same rights protections
and facilities available to local investors'.
Under Article 9:
'Foreign Investment shall not be subjected to expropriation or nationalisation
unless for public interests, by means of legal process, in a non-discriminatory
manner and against payment of appropriate compensation on the basis of the real
value of the investment immediately before the expropriation'.
The issue of this licence will also qualify Union for ex-appropriation coverage
under Union's political risk insurance with the Australian Government owned
Export Finance Insurance Corporation (EFIC) effective 1st January 2006.
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