VANCOUVER, British Columbia, March 22, 2019 (GLOBE NEWSWIRE) -- Macarthur Minerals Limited (MMS.V) (MMSDF) (the “Company” or “Macarthur”) announces that, as a result of a review by the Investment Industry Regulatory Organization of Canada, the Company is issuing the following news release to clarify certain statements in the Company’s news release dated March 21, 2019 entitled “Macarthur Minerals Signs 10 Year Iron Ore Off-Take Agreement for the Lake Giles Iron Project in Australia With Glencore International A.G.” (the “March 21 News Release”).
In addition to the retractions and clarifications contained in this news release, the Company would like to clarify that the intention of the Company in issuing the March 21 News Release was to immediately disclose the entering into a material contract with Glencore International A.G., as required by Policy 3.3 – Timely Disclosure of the TSX Venture Exchange Corporate Finance Manual (the “TSX-V Manual”). The Company regrets any confusion to the shareholders of the Company that may have resulted from the March 21 News Release.
The disclosure in the March 21 News Release relating to the gross value of the iron ore off-take agreement, projected revenue to the Company, projected spot price for iron ore during the term of the off-take agreement and the resource estimates and economic forecast of the combined Moonshine Magnetite and Ularring Hematite operation (collectively, the “Disclosure”) is inconsistent with:
- section 2.1 (Requirements Applicable to All Disclosure) of National Instrument 43-101 - Standards of Disclosure for Mineral Projects (“NI 43-101”) because the March 21 News Release did not contain the required statements that the scientific and technical information contained in the March 21 News Release has been approved by a “qualified person” under NI 43-101;
- section 2.3 (Restricted Disclosure), subsections (1)(b) and (1)(c), of NI 43-101 because the Disclosure discloses the results of economic analyses that includes or is based on inferred mineral resource and the gross value of metal or mineral in a deposit;
- section 2.3 (Restricted Disclosure), subsection (3), and section 3.4(e) of NI 43-101 because the March 21 News Release did not contain the required cautionary language, including the qualifications and assumptions made by a “qualified person” under NI 43-101;
- section 4.2(6) (Production Decision) of Companion Policy 43-101CP to NI 43-101 because the March 21 News Release did not contain the required cautionary language that Macarthur has not filed a technical report to support a production decision; and
- section 8.1 (Content of News Releases) of Policy 3.3 – Timely Disclosure of the TSX-V Manual because the March 21 News Release only discloses the projected “revenue” of the Life-of-Mine Off-Take Agreement.
In addition, the preliminary assessment titled “The Technical Report on the Moonshine and Moonshine North Prospects, Lake Giles Project Western Australia” dated March 25, 2011 (the “2011 Technical Report”) prepared for Macarthur is not a current NI 43-101 technical report prepared in respect of the combined Moonshine Magnetite and Ularring Hematite operation and does not reflect the economic forecast of the combined Moonshine Magnetite and Ularring Hematite operation.
The portions of the following statements from the March 21 News Release in quotations, italicized and underlined are hereby retracted for the foregoing reasons:
- Securing this approximately “US$4 billion purchase arrangement ensures consistent long-term revenue to the Company.”;
- Macarthur’s management is pursuing debt financing discussion with European banks and international financial institutions. “Achieving this key milestone is the beginning for Macarthur to transition into a large scale global resource production company.”;
- “The Agreement is currently valued at approximately US$4 billion in revenue over the first 10-year term ensuring Macarthur long term revenue and consistent sales per year.”;
- Metallurgical test work on the Lake Giles’s Moonshine Magnetite Project indicates that an export product of high margin +65% Fe can be achieved. “Current market price for 65% Fe product is quoted at US$98/tonne (A$140 per tonne). (1 - Custeel Iron Ore Price Index) The value of the initial 10-year Glencore off-take at current market price for Moonshine iron ore would be ~US$4 billion.”; and
- “The Capex for a combined Moonshine Magnetite and Ularring Hematite operation is now estimated to be US$335 million. Magnetite Opex costs are estimated to be A$55/tonne free on board (“FOB”) and Opex costs of A$42/tonne FOB for hematite.”.
Mr Ian S Cooper, B.Sc., A.R.S.M., F.G.S. FAusIMM, a Fellow of the Australasian Institute of Mining and Metallurgy (membership number 107348, is a consultant of Macarthur and is a Qualified Person as defined in NI 43-101. Mr Cooper has reviewed and approved the technical information contained in this news release.
Caution Regarding Forward Looking Statements
Certain of the statements made and information contained in this press release may constitute forward-looking information and forward-looking statements (collectively, “forward-looking statements”) within the meaning of applicable securities laws. The forward-looking statements in this press release reflect the current expectations, assumptions or beliefs of the Company based upon information currently available to the Company. With respect to forward-looking statements contained in this press release, assumptions have been made regarding, among other things, the timely receipt of required approvals, the reliability of information, including historical mineral resource or mineral reserve estimates, prepared and/or published by third parties that are referenced in this press release or was otherwise relied upon by the Company in preparing this press release. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and no assurance can be given that these expectations will prove to be correct as actual results or developments may differ materially from those projected in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include fluctuations in exchange rates and certain commodity prices, uncertainties related to mineral title in the project, unforeseen technology changes that results in a reduction in iron ore demand or substitution by other metals or materials, the discovery of new large low cost deposits of iron ore, uncertainty in successfully returning the project into full operation, and the general level of global economic activity. Readers are cautioned not to place undue reliance on forward-looking statements due to the inherent uncertainty thereof. Such statements relate to future events and expectations and, as such, involve known and unknown risks and uncertainties. The forward-looking statements contained in this press release are made as of the date of this press release and except as may otherwise be required pursuant to applicable laws, the Company does not assume any obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
On behalf of the Board of Directors,
MACARTHUR MINERALS LIMITED
Cameron McCall, Executive Chairman
Joe Phillips, CEO and Director
Telephone: +61 448899247
For further information, please contact:
Investor Cubed Inc.:
Telephone: (647) 258-3310
Fax: (416) 363-7977