Union Resources Limited
12 May 2006
Mehdiabad Zinc Project Update
SYDNEY and LONDON: 15 May 2006 - The Board of Directors of Union Resources
Limited ('Union' or the 'Company') is pleased to announce that it is taking
immediate steps to progress the world class Mehdiabad zinc, lead and silver
project (the 'Mehdiabad Project') from the exploration and feasibility phases to
the more advanced phases of project financing and development.
Union has appointed Societe Generale Corporate & Investment Banking ('Societe
Generale') as its financial adviser in relation to the debt and equity financing
of the Mehdiabad Project.
The Mehdiabad Project represents one of, if not, the largest undeveloped zinc
resources in the world. Union believes that the appointment of Societe Generale
is a major step forward in raising the required finance for this very
significant low grade, complex ore body which will result in the Mehdiabad Zinc
Company becoming a major zinc producer, with operating costs in the lowest
quartile of world production.
To prepare for this significant future growth the Company recognises the need to
strengthen the management team in order to complete the task of building and
operating a world class mine and zinc processing plant and industrial complex in
Mehdiabad. Therefore Union, with the support of the current management, intends
in due course to make a number of senior executive appointments to ensure Union
is successful in its aim of developing the Mehdiabad Project and becoming a
major zinc producer.
Union is also planning to re-locate its operational head quarters to either
Europe or the Middle East to be nearer to the capital markets and potential
sources of finance for this project.
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