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Amedeo Resources PLC (AMED)

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Thursday 19 January, 2017

Amedeo Resources PLC

Acquisition of 2.5% stake in Copper Mine

RNS Number : 6567U
Amedeo Resources PLC
19 January 2017
 

19 January 2017

 

Amedeo Resources PLC ("Amedeo")

Acquisition of 2.5% stake in Copper Mine

Amedeo is pleased to announce that it has acquired a 2.5% stake in Ganjine Kani Company ("GKC") for US$500,000, a copper mining company close to the city of Mashhad in Iran. As part of the transaction, Amedeo has a 5-year option to acquire a further 5% of GKC for US$2 million.

GKC is a producing miner. GKC also has the required infrastructure to produce copper concentrate from ore. To date, around 1 million tonnes of ore has been extracted by GKC which contains, on average, 0.9% copper. GKC has three mines.

Iranian studies estimate that the producing mine alone may have at least 6.5 million tonnes of copper ore with a 0.9% average copper content. The extent of the ore and its copper content has yet to be confirmed to international standards.

GKC has been selling copper concentrate into Asia, including China. MGR Resources PTE Ltd ("MGR"), which trades and brokers iron ore and in which Amedeo has a 49% stake, intends to work with GKC to increase GKC's supply of copper into East Asia and China.

Glen Lau, Chief Executive Officer of Amedeo said "We are pleased to have made this acquisition which will allow MGR to widen the commodities it trades and brokers and, at the same time, give MGR a captive supply of copper."

For further information please visit www.amedeoresources.com or contact:

Enquiries:

Glen Lau
Chief Executive Officer

Amedeo Resources PLC
Tel office: +44 20 7583 8304   

Zafar Karim
Executive Director

Amedeo Resources PLC 
Tel office: +44 20 7583 8304   

Paul Shackleton
Nominated Adviser & Broker

WH Ireland
Tel office: +44 113 394 6600

Elliott Hance
Joint Broker

Beaufort Securities Limited
Tel office: +44 20 7382 8300

 

Disclosures required under Schedule 4 of the AIM Rules for Companies

For the year ended 21st March 2016, GKC made a net loss of US$125,000. The consideration of US$500,000 is being satisfied from existing resources.

Notes

Amedeo Resources PLC is an investment company whose policy is to invest principally, but not exclusively, in the resources and resources infrastructure and asset sectors. Amedeo has a deep and broad global network and wide contact base in these sectors, including in East and South East Asia and the Middle East which it leverages to source and make investments. These sectors exhibit high growth and are strategically important. Amedeo is a proactive investor which assists its investee companies to grow by providing investment, expertise and contacts.


This information is provided by RNS
The company news service from the London Stock Exchange
 
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