News
Trading Statement
Formation of New Joint Venture
Approval for Sale of Fluorspar from Trial Mining
Lotus Resources Plc, (`Lotus' or `the Company'), a company engaged in the development of mining and exploration projects in Mongolia and China is pleased to announce that it has recently signed its fourth fluorspar joint venture agreement in Mongolia. The new agreement is with Amguulan LLC.
Amguulan owns a Mining Licence in Dornogobi Province, Mongolia. The project has an approved resource of 170,000 tonnes of fluorspar and application has been made to transfer the Mining Licence to Lotus Amgalan LLC, the new joint venture company. An Environmental Assessment and a Mining Plan have been commissioned and it is expected that following approval of the plan, open pit mining will be able to commence during the third quarter of 2009.
Under the terms of the agreement, Lotus, through its wholly owned Mongolian subsidiary Lotus Minerals Mongolia LLC, will own 51% of the joint venture company in return for an investment of US$80,000.
As has previously been announced Lotus plans to fund this investment and the commencement of the mining operations via a placing of equity with new investors, directors and management, in due course.
Lotus also announces that approval has been obtained from the Special Inspections Authority of the Mongolian Government for the sale of fluorspar being mined from the trial mining currently under way at the Dai Uul fluorspar project owned by Lotus Dai Uul LLC. The fluorspar will be sold under a sales contract agreed with MGB Mining LLC to customers in Russia. The revenue from this activity is expected to more than cover the current costs incurred by Lotus Dai Uul LLC.
Simon Longworth, Chief Executive, Lotus Resources Plc commented:
"With this new joint venture the Company should be able to get into full scale fluorspar mining in a relatively short timeframe. Since January the Company has secured fluorspar projects at the exploration, advanced exploration and mining stages, as well as a fluorspar trading agreement which generates cash. This new agreement is a further step towards our aim of developing a profitable fluorspar mining and processing business in an area of the world that offers significant opportunities.
"In addition to the existing signed joint ventures, Lotus has a number of other fluorspar exploration and mining initiatives under active consideration."
Editors' Note
On 29 January and 27 February 2009 the Company 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.
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 Maarshman
Tel: +44 (0) 20 7011 9411