News
Operations Update
Transfer of Mining Licence
First Sale of Fluorspar from Trial Mining
Lotus Resources Plc, ('Lotus' or the 'Company'), which is engaged in the development of mining and exploration projects in Mongolia and China, announces that, following the signing of its joint-venture agreement with Amguulan LLC, announced on 19 June, the Mining Licence has now been successfully transferred to the Joint Venture Company.
The Mining Licence is located in Dornogobi Province, Mongolia and the project has an approved resource of 170,000 tonnes of fluorspar. An Environmental Assessment and Mining Plan are now being prepared and, once approved, it is expected that open pit mining will be able to commence in August 2009.
Lotus is also pleased to announce that it has made initial sales of fluorspar from the Dai Uul project owned by Lotus Dai Uul LLC. The fluorspar is being sold under a previously announced sales contract with MGB Mining LLC to customers in Russia. The revenue from this activity is expected to more than cover the current costs incurred by the Dai Uul Joint Venture.
Simon Longworth, Chief Executive, commented:
"The successful transfer of the Mining Licence from the Mongolian owner to the Joint Venture Company is another significant step towards achieving our aim of building a profitable fluorspar mining and processing business in Mongolia. We are now in a position where we can quickly bring several fluorspar mines into full scale production.
"The sales from the Dai Uul property mean that this project is now self financing.
"The Company has a number of other fluorspar exploration and mining properties under consideration and is confident that it can quickly expand this business over the next six to nine months."
Editors' Note
On 29 January and 27 February 2009 Lotus announced that an opportunity had been identified in Mongolia to develop an interest in the mining and processing of metallurgical grade fluorspar for use in the steel industry and as part of the development of this opportunity, three joint venture agreements have been signed with separate Mongolian partners to conduct exploration for fluorspar. The signing of the fourth joint venture agreement with Amguulan LLC was announced on 19 June 2009.
Lotus Resources Plc Simon Longworth, Chief Executive
Tel: +976 8800 8983 and +86 (0) 1350 107 0840
James Benson, Finance Director
Tel: +44 (0) 7768 242 660
Mazars Corporate Finance Limited Stephen Skeels
Tel: +44 (0) 20 7063 4000
Lothbury Financial Michael Padley / Ron Marshman
Tel: +44 (0) 20 7011 9411