Information  X 
Enter a valid email address

Union Resources LTD (URL)

  Print      Mail a friend

Monday 08 January, 2007

Union Resources LTD

Project Update


                            Union Resources Limited                            

                         Mehdiabad Zinc Project Update                         

Union Resources Limited ("Union") previously announced on 7 December 2006 that
it had received a purported termination letter from Iranian Mining Industries
Development and Renovation Organisation ("IMIDRO") seeking to terminate various
agreements relating to the Mehdiabad Project in Iran (the "Project").

Union advises that as it remains firmly of the opinion that IMIDRO has
invalidly issued the purported notice of termination. Union has now given
notice, pursuant to Article 12.3 of the Basic Agreement, to IMIDRO and Union's
other joint venture partner (Itok Gmbh) that it requires the boards of
directors of the joint venture partners to meet to resolve the disputes that
have arisen. Union anticipates that the meeting will take place in the near
future. 

In its announcement of 7 December 2006 Union advised:

"Union notes that IMIDRO has not proposed the termination of the Shareholders'
Agreement which relates to the activities of the joint venture company, MZC.
Union therefore assumes that at this time IMIDRO is supporting MZC as a company
continuing to operate under this agreement and in accordance with the Iranian
Commercial Code. However, MZC will still need to hold the Exploitation Licence
in order for the Project to be financed."

Subsequent to this announcement Union has received a further letter from IMIDRO
confirming that IMIDRO considers that the terms of the Shareholders' Agreement
are still binding.

In the meantime Union is continuing working in Iran to complete all studies
currently in progress.

Finally, Union has received written notification from Export Finance and
Insurance Corporation ("EFIC") that it will not extend Union's political risk
insurance policy with EFIC beyond the 31 December 2006 expiry date, but that
its decision not to renew will not affect Union's ability to lodge a claim
under the policy for an event which occurred prior to 31 December 2006. EFIC
also advised that it would be willing to consider an application from Union for
a new policy once the situation regarding the termination of agreements has
been resolved.


For further information contact:

Australia: 
Union Resources Limited
Rob Murdoch - Managing Director
Phone: +61 07 3833 3833
Email: rob@unionresources.com.au

London: 
Hanson Westhouse Limited
Bill Staple or Martin Davison
0207 7601 6100