TIDMMNC
RNS Number : 2221B
Metminco Limited
19 September 2018
ASX / AIM ANNOUNCEMENT 19 September 2018
ACQUISITION OF DSO NICKEL LATERITE PROJECT AND
FINANCING
This announcement is an abridged version of the announcement and
does not include schematics and appendices. For the full
announcement, please refer to the Company's website at
www.metminco.com.au
Highlights
-- Strategic acquisition of a potential direct shipping (DSO)
nickel laterite project, the Jejevo Nickel Project, with near-term
development potential in close proximity to numerous international
markets.
-- The Jejevo Nickel Project is based on nickel laterite
mineralisation which was previously held by Inco and Sumitomo, has
been the subject of considerable drilling and development
studies.
-- The Jejevo Nickel Project is held under a current Prospecting
License and is located on Santa Isabel Island in the Solomon
Islands. It is proximate to the coast and has DSO potential.
-- Placement and Rights Issue to raise approximately $3 million
(before costs) on a combined basis to fund the advancement of this
nickel opportunity as well as its Colombian gold projects.
Executive Chairman Mr. Kevin Wilson commented:
"The acquisition of the Jejevo Nickel Project, gives Metminco
exposure to nickel at a time when rising battery manufacture is
expected to accelerate demand for the metal. We will commence
advancing Jejevo as soon as the acquisition completes.
Together with our Quinchia Gold Project we now have two advanced
exploration projects that we believe offer near term development
potential."
Metminco Limited (Metminco, ASX: MNC; AIM: MNC) is pleased to
announce that it has entered into a binding term sheet to acquire
100% of the issued capital of Sunshine Metals Ltd (Sunshine) which
holds 80% of the Jejevo Nickel Project on Santa Isabel Island in
the Solomon Islands, as well as an 80% interest in an early stage
bauxite prospect, the Tausere Project, located on the southern
coastline of Choiseul Island, situated at the northwest extent of
the Solomon Islands.
The Jejevo Nickel Project is based on a nickel laterite deposit
which was previously held by Inco and Sumitomo and the subject of
considerable drilling and studies. The Project combines attractive
nickel grades, with close proximity (approximately 11kms) to a site
believed suitable for barge exports and is potentially suitable for
a low capital direct shipping operation (DSO) development.
The acquisition will provide Metminco with a project that the
Company intends to rapidly advance and provides exposure to nickel
prices in a period when demand growth is expected to be driven by,
in particular, the growing market for batteries to support
increasing electric vehicle production. Together with its Quinchia
Gold Project in Colombia, Metminco will have two diverse and
rapidly advancing metal projects and is well positioned to benefit
from any upswing in metal pricing.
Jejevo Nickel Project
The Jejevo nickel deposit is an advanced exploration nickel
laterite deposit located on Santa Isabel Island in the Solomon
Island chain The area is covered by a Prospecting Licence
(PL-01/18) granted to Sunshine Metals in July 2018.
Previous owners including Inco, BHP and Sumitomo Metal Mining
(SMM) undertook several phases of investigations since the 1970s
including drilling (428 holes including 338 diamond holes drilled
by SMM in 2012/13) and pitting (158) returning nickel
mineralisation over an area extending for approximately 3,000m long
by 650m wide. The exploration drilling and pitting has hole spacing
ranging from 50m to 400m and tested the zone of weathering which
extended down to approximately 12m depth. The nickel mineralisation
encountered in these holes is reported to have average grades
ranging between 1.1% and 1.3% Ni over 5m to 7m in thickness. The
grade range was determined from the results of a statistical
analysis commissioned by SMM of 5,524 one metre composite samples
collected from 472 vertical drill holes and pits spaced between 50m
and 400m apart. Geochemical domaining of the composite samples was
undertaken to further refine the average grades for the limonite,
transition and saprolite zones of the lateritic profile. Global
average densities were used for the various domains.
Cautionary Statement
The above exploration information was derived from a report
undertaken by Golders Associates in 2014 and commissioned by SMM,
and has not been reported in accordance with the JORC Code 2012.
The exploration information was based on the 428 holes (including
338 diamond holes drilled by SMM in 2012/13) and pitting (158)
returning nickel mineralisation over an area extending for
approximately 3,000m long by 650m wide. A Competent Person has not
done sufficient work to disclose the exploration information in
accordance with the JORC Code 2012. It is possible that following
further evaluation and /or exploration work that the confidence in
the prior reported exploration information may be reduced or
modified when reported under the JORC Code 2012. Nothing has come
to the attention of Metminco that causes it to question the
accuracy or reliability of the former owner's exploration
information, however, Metminco notes that it does not appear that
SMM undertook independent laboratory analysis of assay data, and
accordingly, Metminco intends to address this as part of its
proposed evaluation process. Metminco has not independently
validated SMM exploration information and therefore is not to be
regarded as reporting, adopting or endorsing those results. There
is no more current information in the public domain relating to the
Jejevo Nickel Project.
SMM undertook preliminary test work and completed internal
company estimates of mineralisation and economic studies of the
project. Based on this information, Metminco has estimated an
Exploration Target of approximately 10Mt-15Mt at grades of
approximately 1.1%-1.3% Ni.
The Exploration Target is conceptual in nature and there has
been insufficient exploration to estimate a mineral resource. It is
uncertain if further exploration will result in the estimation of a
JORC Code (2012) compliant mineral resource in whole or in
part.
Metminco intends to assess the existing data, and undertake any
confirmatory studies (including drilling and other data acquisition
as necessary) with the aim of generating a JORC resource in 2019 to
support economic studies on the deposit.
Development studies were also undertaken by international
external consultants which will also need to be confirmed by
Metminco's studies. An EIS indicated there did not appear to be
significant development hurdles and a DSO would not require
tailings facilities. A barging location was identified
approximately 11km from the proposed mine site and exported
laterite was being considered as feedstock into HPAL plants in
various locations. Metminco intends to seek a Mining Licence in
2019 on successful completion of these confirmatory studies.
For further details of the Jejevo Nickel Project please refer to
the company presentation announced today 19 September and available
on the Company's website www.metminco.com.au.
Summary Terms of the Transaction
Metminco proposes to acquire 100% existing share capital in
Sunshine Minerals Limited (Sunshine) through the issue of shares on
a staged basis (Acquisition).
Sunshine is a private company based in the Solomon Islands, to
northeast of Australia, focused on the exploration and development
of its 80% interest in an advanced stage DSO nickel laterite
project, the Jejevo Nickel Project, located on the south coast of
Santa Isabel Island. The remaining 20% interest is held by a
representative of the local landowner group with a carry
arrangement on terms still to be negotiated.
Sunshine also has an 80% interest in an early stage bauxite
prospect, the Tausere Project, located on the southern coastline of
Choiseul Island, situated at the northwest extent of the Solomon
Islands.
The consideration for the Acquisition of Sunshine is as
follows:
(a) $1,500,000 less the Deposit (see below) and agreed debts in
Sunshine which will be satisfied through the issue of up to
250,000,000 fully paid ordinary shares in the capital of Metminco
(Metminco Shares) at a deemed issue price of $0.006 each (Upfront
Consideration Shares);
(b) 250,000,000 Metminco Shares upon announcement to the ASX by
Metminco of an initial JORC compliant resource estimate at Jejevo
Nickel Project of at least 125,000 tonnes of contained nickel metal
at a cut-off grade of not less than 0.7% nickel, which must be
based upon exploration information delivered to Metminco by
Sunshine and exploration work undertaken by Metminco in the amount
of not greater than $500,000 (Stage 1 Deferred Consideration
Shares); and
(c) 500,000,000 Metminco Shares upon the receipt of a mining
license over the Jejevo Nickel Project located in the Santa Isabel
Province, Solomon Islands (Stage 2 Deferred Consideration
Shares).
Metminco has agreed to pay Sunshine a non-refundable deposit of
$50,000 (Deposit). The Deposit funds are to be used to pay part of
the landowner access fees for the Jejevo Project.
The Acquisition is conditional upon a number of items, including
but not limited to:
(a) successful completion of due diligence by Metminco;
(b) Metminco completing a minimum $3,000,000 equity capital
raising; and
(c) Metminco shareholder approval of all required resolutions.
This will include Metminco obtaining shareholder approval under ASX
Listing Rules 7.1 and 11.1.2 to issue the Upfront Consideration
Shares, Stage 1 and Stage 2 Deferred Consideration Shares and a
waiver from ASX Listing Rule 7.3.2 to issue the Stage 1 and Stage 2
Deferred Consideration Shares at a date later than 3 months after
the date of shareholder approval.
Further details concerning Sunshine and the Transaction are
presented below in this announcement.
Placement
Metminco has received firm commitments for a placement of
135,000,000 Metminco Shares at an issue price of AUD0.4c (Issue
Price) to raise $540,000 using the Company's available capacity
pursuant to ASX Listing Rule 7.1 (Placement Shares).
Each recipient of Placement Shares will also receive one (1)
attaching listed option (Placement Option) (ASX: MNCOA) exercisable
at AUD1.1c per share on or before 1 June 2020 for every three (3)
new Metminco Shares subscribed under the Placement. The issue of
Placement Options will be subject to shareholder approval.
Following the issue of Placement Shares to be issued under the
Placement the Company will have 1,047,548,977 Metminco Shares on
issue and after this time this figure may be used by shareholders
as the denominator for the calculations to determine if they are
required to notify their interest in, or a change to their interest
in, the Company under the FCA's Disclosure Guidance and
Transparency Rules.
It is intended that the Placement funds will be settled on
Tuesday 25 September 2018.
Patersons Securities Limited (Patersons) acted as lead manager
to the Placement.
Renounceable Rights Issue
Metminco will undertake a pro rata renounceable rights issue to
raise up to $2,514,118 (before costs of the offer) (Rights Issue),
comprising an offer of three (3) Metminco Shares (Rights Shares)
for every five (5) existing Metminco Shares at issue price of
AUD0.4c per Rights Share, together with one (1) attaching listed
option (Rights Option) (ASX: MNCOA) exercisable at AUD1.1c per
Metminco Share on or before 1 June 2020 for every three (3) Rights
Shares subscribed under the Rights Issue.
The Rights Issue is intended to be underwritten by Patersons,
who is also acting as lead manager to the Rights Issue, although
the extent and terms of such underwriting is yet to be
finalised.
The offer of securities under the Rights Issue will be made
pursuant to a prospectus prepared in accordance with section 713 of
the Corporations Act 2001 which is anticipated to be lodged on ASX
before the end of September 2018 (Prospectus).
It is intended that only shareholders with a registered address
in Australian and New Zealand will be eligible to participate in
the Rights Issue (Eligible Shareholders). Eligible Shareholders
will have the opportunity to apply for additional rights above
their pro-rata entitlement. However, the acceptance of these
applications for additional rights is the decision of the Board and
the underwriter.
Metminco intends to appoint Patersons to act as a nominee to
seek to sell ineligible shareholders' rights during the Rights
Issue period. Any proceeds of this sale (less transaction costs)
will be paid to ineligible shareholders on a pro rata basis.
The new Metminco Shares to be issued under the Rights Issue and
Placement total 763,529,386 comprising 628,529,386 Rights Shares
(on the basis that the record date follows after settlement of the
Placement) and 135,000,000 Placement Shares.
The Company intends to seek quotation on the ASX for the
Placement and Rights Shares and Placement and Rights Options issued
under the Rights Issue and Placement, and will make an application
for admission to trading on AIM for the Placement Shares issued
under the Placement. Trading in the Placement Shares is expected to
commence on AIM on or around 26 September 2018.
The Placement Shares and Rights Shares will rank equally with
existing Metminco Shares.
The Company has not received any updated notification from
Significant Shareholder Lanstead Capital L.P., but should their
holdings remain unchanged since their last notification their
interest in Metminco will decrease on unchanged holdings and the
impact of dilution to 6.85% (71,768,608 Metminco Shares)
The shareholding in Metminco of Mr Nevres Crljenkovic and
associated entities has increased to 45,375,000 Metminco Shares
through the acquisition of 5,375,000 Metminco Shares since 26 April
2018. Combined with the impact of dilution this revised
shareholding represents an interest of 4.33% in Metminco.
Funds raised under the Placement and Rights Issue will be used
for advancing the Company's Quinchia Gold Project in Colombia,
advancing the Jejevo Nickel Project, and working capital. In the
event that the Rights Issue is not successful this represents a
failed condition precedent in the proposed acquisition of Sunshine
Minerals and the acquisition will not proceed.
Intention to cancel Admission to trading on AIM
Metminco is currently listed on two securities exchanges - the
Official List of the Australian Securities Exchange (ASX) and the
AIM market of the London Stock Exchange (AIM).
Following due consideration, and in an effort to streamline
listing and compliance costs and best advance and protect
shareholder's interests, the Board has determined that the
continued admission to trading of Metminco Shares on AIM
(Admission) is no longer in the best interests of Metminco and its
shareholders. Factors the Board has considered include the
following:
-- the very low holding of Metminco Shares on AIM, with less
than 6% of Metminco Shares at 6 September 2018 held via UK
Depositary Interests (DIs), with this figure likely be less than 5%
upon completion of the Placement;
-- limited trading and liquidity on AIM. For the past 12 months,
less than 9% of the trading in Metminco Shares has occurred on AIM,
with this figure falling to less than 5% since completion of the
Entitlements Issue in April 2018. Low levels of liquidity also
carry the risk that the Company's share price can move up or down
significantly following trades of small numbers of shares;
-- limited success in attracting significant funding out of the UK;
-- the high costs of compliance and marketing in the UK against
the limited benefits obtained, which capital could be better
deployed to the company's fundamental business; and
-- given the Acquisition constitutes a reverse takeover (RTO)
under Rule 14 of the AIM Rules for Companies (AIM Rules) the
Company would be required to prepare and publish a full circular to
shareholders and seek shareholder approval, which would also be
accompanied by the preparation and publication of an admission
document in respect of the proposed enlarged entity. The Board
considers that significant diversion of already limited funds
toward such an exercise, and the additional delay and uncertainty
that it would bring to the Acquisition, are not in the best
interests of the Metminco or its shareholders.
Therefore, the Board believes that the burdens and risks of the
Company's current Admission to trading on AIM outweigh the benefits
and that, accordingly, it would be in the best interests of the
Company and shareholders as a whole if the Company's Admission to
trading on AIM were cancelled (the Cancellation).
Pursuant to Rule 41 of the AIM Rules, the Company, by way of its
nominated adviser, has notified the London Stock Exchange of its
preferred date of the intended Cancellation.
The listing and trading of Metminco Shares on the ASX will
continue and is not affected by the Cancellation.
The principal effects that the Cancellation would have on
shareholders are as follows:
-- Metminco Shares will no longer be traded on AIM, and it is
expected that trading of the Metminco Shares on AIM will remain
suspended until the Cancellation;
-- the Company's Depositary Interest (DI) facility will be
cancelled and the securities transferred to the Australian share
register;
-- Metminco Shares will remain freely transferable following the Cancellation;
-- the regulatory and financial reporting regime, including but
not limited to the AIM Rules, the corporate governance requirements
for companies trading on AIM, and the EU Market Abuse Regulation,
applicable to companies whose shares are admitted to trading on AIM
will no longer apply, but the regulatory framework of the ASX,
including its corporate governance requirements, and Australian
company law will still apply;
-- shareholders will no longer be afforded the protections given
by the AIM Rules, such as the requirement to be notified of certain
events and the requirement to obtain shareholder approval for
certain transactions where applicable, such as reverse takeovers
and fundamental changes in the Company's business, albeit similar
protection may be afforded pursuant to the ASX Listing Rules and
Australian company law;
-- RFC Ambrian will cease to be the nominated advisor to the Company;
-- arrangements will be made by the Company for Metminco Shares
held by existing Metminco shareholders on the DI register be able
to trade their Metminco Shares on the ASX while trading in Metminco
securities remains suspended on AIM, subject to undertaking certain
actions; and
-- the Cancellation might have either positive or negative
taxation consequences for shareholders. Shareholders who are in any
doubt about their tax position should consult their own
professional independent tax adviser.
The above considerations are non-exhaustive and shareholders
should seek their own independent advice when assessing the likely
impact of the Cancellation on them.
Further details of the various arrangements for the cancellation
of the DI facility, transfer of securities to the Australian
register and the trading of Metminco Shares held via DI's while
Metminco remains suspended on AIM will be notified to shareholders
shortly.
Under the AIM Rules, the Company is required to notify the
intended Cancellation and separately inform the London Stock
Exchange of its preferred Cancellation date at least 20 Business
Days' prior to such date. The timetable for the Cancellation is set
out below:
-- 19 September 2018: commencement of 20 business day period under AIM Rule 41
-- 16 October 2018: Last day of trading on AIM
-- 17 October 2018: Cancellation of Admission of Metminco Shares to trading on AIM
(7.00am British Summer Time)
In accordance with the guidance notes to AIM Rule 41,
shareholder consent in a general meeting of the Company, which
would otherwise be required pursuant to AIM Rule 41, will not be
required as the Company is maintaining its listing on ASX, being an
AIM Designated Market as defined in the AIM Rules.
Further details of the Transaction
Sunshine Metals Ltd
Sunshine is a private company incorporated in the Solomon
Islands, to northeast of Australia, focused on the exploration and
development of its 80% interest in an advanced stage DSO nickel
laterite project, the Jejevo Project, located on the south coast of
Santa Isabel Island. The remaining 20% interest is held by a
representative of the local landowner group with which a carry
arrangement is to be negotiated as a condition precedent to the
transaction.
Sunshine also has an 80% interest in an early stage bauxite
prospect, the Tausere Project, located on the southern coastline of
Choiseul Island, situated at the northwest extent of the Solomon
Islands.
These interests are held through two Solomon Islands
incorporated subsidiaries:
-- an 80% interest in Sunshine Nickel Limited (SUB1); and
-- an 80% interest in Sunshine Moumolu Limited (SUB1)
The remaining 20% of SUB1 is held by Mr Nelson Kile (Nelson
Interest) and the remaining 20% of SUB2 is held by the Bugotu
Landowners Association.
Sunshine has 5 shareholders, each of which are a counterparty to
the Acquisition (together the Vendors):
-- Eagle Ray Investments Pty Ltd (Eagle Ray) 30.2% interest
-- Gunsynd PLC (Gunsynd) 19.8% interest
-- Pawel Misiec 23.6% interest
-- Andrew Kuzemko 23.6% interest
-- Nelson Kile 2.9% interest
Sunshine's unaudited loss for the financial year ended 31 March
2018 was SBD3,514,188 (AUD619,000), and it has net assets of
negative SBD2,552,484 (AUD450,000) made up of:
-- Current assets: SBD20,703 (AUD4,000)
-- Fixed assets: SBD0 (AUD0)
-- Current Liabilities SBD2,573,187 (AUD453,000)
The Current Liabilities of Sunshine include the Deposit. Amounts
in excess of the Deposit are subject to payment at the discretion
of Metminco.
Conditions Precedent
The Acquisition is conditional upon a number of items
(Conditions Precedent), including:
i) successful completion of due diligence by Metminco;
ii) Metminco completing a minimum $3,000,000 equity capital raising;
iii) execution of a JV arrangement between Metminco and Nelson
Kile whereby Nelson Kile is carried until production is
commissioned on any project on a SUB1 tenement via "carried
interest finance" to be provided by Metminco where exploration and
development costs attributable to the Nelson Interest (plus
interest at the interbank bank bill swap rate plus 5%) are offset
against the future cash flows or sale proceeds of the relevant
Tenement and must be fully repaid before dividends can be paid by
SUB1;
iv) Metminco shareholder approval of all required resolutions,
including the issue of the Upfront, Stage 1 Deferred and Stage 2
Deferred Consideration Shares; and
v) all necessary regulatory approvals, including ASX granting
the Company a waiver from listing rule 7.3.2 to permit the
Company's notice of meeting to seek shareholder approval to issue
the Stage 1 and Stage 2 Deferred Consideration Shares up to 5 years
after the date of the relevant shareholder approval, and ASX
confirming to Metminco, on terms satisfactory to Metminco, that
Metminco will not be required to re-comply with Chapters 1 and 2 of
the ASX Listing Rules.
If the Conditions Precedent are not satisfied (or waived by
Metminco) on or before 5.00pm (Western Standard Time) on 17
November 2018, any party may terminate the Acquisition. The Company
cautions that there can be no guarantee that the Acquisition will
successfully complete, however settlement of the Acquisition would
occur 5 business days after the satisfaction (or waiver by
Metminco) of the Conditions Precedent.
The Acquisition includes warranties, representations and
undertakings typical of a transaction of this nature.
Should the Acquisition complete, the interests in Metminco
Shares of the Vendors, on a post-Placement, post-Rights Issue
basis, on the payment of the Upfront Consideration (on the basis
the maximum payable is paid) and in the event all Deferred
Consideration is paid are set below (rounding errors may be
present):
Upfront only paid All Consideration Paid
-- Eagle Ray 75,000,000 (3.9%) 300,000,000 (11.2%)
-- Gunsynd 50,000,000 (2.6%) 200,000,000 (7.5%)
-- Pawel Misiec 58,878,945 (3.1%) 235,515,780 (8.8%)
-- Andrew Kuzemko 58,878,945 (3.1%) 235,515,780 (8.8%)
-- Nelson Kile 7,242,110 (0.4%) 28,968,440 (1.1%)
-- Total Vendors 250,000,000 (13.0%) 1,000,000,000 (37.4%)
-- Metminco Shares on issue 1,926,078,363 2,676,078,363
This would result in Eagle Ray, Pawel Misiec and Andrew Kuzemko
becoming Significant Shareholders of Metminco for the purposes of
the AIM Rules upon issuance of the Upfront Consideration. Should
the Stage 1 and Stage 2 Deferred Consideration be issued Gunsynd
would also become a Significant Shareholder, while Eagle Ray would
become a Substantial Shareholder for the purposes of the AIM Rules.
This assumes no further Shares in Metminco are issued prior to the
issuance of the Stage 1 and Stage 2 Deferred Consideration.
For further enquiries contact:
Kevin Wilson
Executive Chairman
Metminco Limited;
kwilson@metminco.com.au
+61 409 942 355
COMPETENT PERSONS STATEMENT
The technical information contained in this presentation that
relates to exploration results and the Exploration Target
(excluding those pertaining to Mineral Resources and Reserves) is
based on information compiled by Mr Gavin Daneel, who is a Member
of the Australasian Institute of Mining and Metallurgy and who is
an independent Consulting Geologist. Mr Daneel has sufficient
experience which is relevant to the style of mineralisation and
type of deposit under consideration, and to the activity which he
is undertaking, to qualify as a Competent Person as defined in the
2012 Edition of the 'Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves' and to qualify as a
Qualified Person for the purposes of the AIM Rules for Companies.
Mr Daneel consents to the inclusion in the release of the matters
based on the information he has compiled in the form and context in
which it appears.
The Company is not aware of any new information or data that
materially affects the information included in this
announcement.
For further information, please contact:
METMINCO LIMITED
Kevin Wilson +61 409 942 355
NOMINATED ADVISOR AND JOINT BROKER
RFC Ambrian
Australia
Andrew Thomson / Alena Broesder +61 2 9480 2500
United Kingdom
Charlie Cryer +44 20 3440 6800
JOINT BROKER
Stockdale Securities
United Kingdom
Corporate Finance- Robert Finlay/
Ed Thomas
Sales- Zoe Alexander +44 20 7601 6100
PUBLIC RELATIONS
Camarco
United Kingdom
Gordon Poole / Nick Hennis +44 20 3757 4997
Market Abuse Regulation (MAR) Disclosure
The information communicated in this announcement includes
inside information for the purposes of Article 7 of Regulation
596/2014.
Forward Looking Statement
All statements other than statements of historical fact included
in this announcement including, without limitation, statements
regarding future plans and objectives of Metminco are
forward-looking statements. When used in this announcement,
forward-looking statements can be identified by words such as
"anticipate", "believe", "could", "estimate", "expect", "future",
"intend", "may", "opportunity", "plan", "potential", "project",
"seek", "will" and other similar words that involve risks and
uncertainties.
These statements are based on an assessment of present economic
and operating conditions, and on a number of assumptions regarding
future events and actions that, as at the date of this
announcement, are expected to take place. Such forward-looking
statements are not guarantees of future performance and involve
known and unknown risks, uncertainties, assumptions and other
important factors, many of which are beyond the control of the
Company, its directors and management of Metminco that could cause
Metminco's actual results to differ materially from the results
expressed or anticipated in these statements.
The Company cannot and does not give any assurance that the
results, performance or achievements expressed or implied by the
forward-looking statements contained in this announcement will
actually occur and investors are cautioned not to place undue
reliance on these forward-looking statements. Metminco does not
undertake to update or revise forward-looking statements, or to
publish prospective financial information in the future, regardless
of whether new information, future events or any other factors
affect the information contained in this announcement, except where
required by applicable law and stock exchange listing.
Appendix GLOSSARY
Terms and abbreviations:
3D wireframe A wireframe is a computer model that only
model includes vertices and lines used to represent
three-dimensional shapes.
Aluminium (Al) Aluminium is a light malleable ductile silvery-white
metallic element that resists corrosion;
the third most abundant element in the earth's
crust (8.1 per cent), occurring only as
a compound, principally in bauxite.
Auger An augur is typically a hand-operated soil
sampling device for collecting soil samples.
Bauxite Bauxite is a heterogeneous, naturally occurring
material of varying composition that is
relatively rich in aluminium. The principal
minerals in bauxite are gibbsite (Al(2)
O(3) .3H(2) O), boehmite (Al(2) O(3) .H2O)
and diaspore, which has the same composition
as boehmite, but is denser and harder.
Composite samples Composite samples are regularly-spaced data
derived from unevenly-spaced data, typically
drill hole data.
DSO High-grade ore that only requires relatively
simple processing (usually limited to crushing
and screening) before being exported for
refining.
EIS An Environmental Impact Statement (EIS)
is a document prepared to describe the effects
for proposed activities on the environment.
"Environment," in this case, is defined
as the natural and physical environment
and the relationship of people with that
environment.
ESIA Environmental and Social Impact Assessment
(ESIA) is a
process for predicting and assessing the
potential environmental and social impacts
of a proposed project, evaluating alternatives
and designing appropriate mitigation, management
and monitoring measures.
Exploration Target An Exploration Target is a statement or
estimate of the exploration potential of
a mineral deposit in a defined geological
setting where the statement or estimate,
quoted as a range of tons and a range of
grade (or quality), relates to mineralisation
for which there has been insufficient exploration
to estimate a Mineral Resource.
Geomorphic surface A mappable area of the earth's surface that
is formed by a set of processes during an
episode of landscape evolution. A geomorphic
surface can be erosional, constructional
or both.
HPAL High Pressure Acid Leach (HPAL) is a metallurgical
process that utilises elevated temperatures
and pressures and sulphuric acid to separate
nickel and cobalt from the laterite ore.
JORC Code (2012) The JORC Code (2012) sets out minimum standards,
recommendations and guidelines for public
reporting in Australasia of Exploration
Results, Mineral Resources and Ore Reserves.
Laterite Laterite is a soil layer that is rich in
iron oxide and derived from a wide variety
of rocks weathering under strongly oxidizing
and leaching conditions. Forms in tropical
and subtropical regions where the climate
is humid.
Limestone Limestone is a sedimentary rock, composed
mainly of skeletal fragments of marine organisms
such as coral, forams and molluscs.
Limonite Limonite is impure hydrated iron oxide (with
variable water content) that is colloidal,
or amorphous, in character. Often brown
and earthy, it is formed by alteration of
other iron minerals, such as the hydration
of hematite or the oxidation and hydration
of siderite or pyrite.
Nickel (Ni) Nickel is a naturally occurring, lustrous,
silvery-white metallic element. It is the
fifth most common element on earth and occurs
extensively in the earth's crust.
Phosphate (P(2) Phosphate is a naturally occurring inorganic
O(5) ) salt of phosphoric acid, H(3) (PO(4) ).
QA/QC QA/QC is the combination of quality assurance,
the process or set of processes used to
measure and control the quality of the product,
and quality control, the process of ensuring
products and services meet consumer expectations.
Regularization The process used to determine the amount
of actual core recovered from a drill hole
to determine whether any core losses have
occurred.
Residual An accumulation of valuable minerals formed
by the natural removal of undesired constituents
of rocks or conversion of useless to useful
components.
Saprolite A highly to completely weathered rock which
has been altered and decomposed by chemical
processes but retains textural and structural
features of the parent material.
Silica (Si) Silica is the name given to a group of minerals
composed of silicon and oxygen, the two
most abundant elements in the earth's crust.
Silica is found commonly in the crystalline
state and rarely in an amorphous state.
sub-cropping A sub-crop is that part of a geological
formation that is close to the surface but
is not exposed or outcropping. It is usually
under the soil profile or alluvial sediments.
Supergene A mineral deposition process in which near-surface
oxidation produces acidic solutions that
leach metals, carry them downward, and reprecipitate
them, thus enriching sulphide minerals already
present.
Twinning Drilling twinned holes is a traditional
technique used for verification of intersections
of high-grade mineralization, testing of
historic data, or confirmation of drill
hole data during geological due diligence
studies. Twinned holes can also be used
for special tasks such as correcting earlier
data that are recognized to be biased.
Ultramafic General classification for igneous and meta-igneous
rocks with low silica content.
Verification Verify or verification refers to the act
of reviewing, inspecting or testing, to
establish and document that a product, service
or system meets regulatory or technical
standards.
Weathering Weathering is the breakdown of rocks at
the Earth's surface, by the action of rainwater,
extremes of temperature, and biological
activity. It does not involve the removal
of rock material.
XRF XRF (X-ray fluorescence) is a non-destructive
analytical technique used to determine the
elemental composition of materials.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
ACQFKLBFVKFZBBZ
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