MMX Celebrates Agreement for the Acquisition of a Mining Right
July 01 2008 - 7:27PM
Marketwired
RIO DE JANEIRO, BRAZIL (BOVESPA: MMXM3) (TSX: XMM), in
compliance with article 157 of Law 6,404/76, and CVM Instruction
358/02, hereby makes the following announcement:
The Company, through an indirect subsidiary of MMX Sudeste
Ltda., AVG Minera��o S/A ("AVG"), and LGA - Minera��o e Siderurgia
Ltda ("LGA") agreed to the terms and conditions of the legal
procedures ("the Contract") for the acquisition of a mining right
owned by LGA, located in a 755.65-hectares area in the Municipality
of Bom Sucesso, Minas Gerais State ("Mining Right" or "Bom Sucesso
Mine").
The Mining Right is located 200 km away from Belo Horizonte, 250
km from LLX Port Sudeste, and around 40 km from the railway
operated by MRS.
For the acquisition of the Mining Right, the Company will pay
LGA an amount equivalent to US$ 193,300,109.60, in four
installments, with maturity on 01/05/2010. Complementary
disbursements may be done depending on the results of the drilling
campaign of a geological research program to be carried out by the
Company in the Mining Right area, in an 18-months period.
Therefore, in case the mineral resources volume, according to the
conditions specified in the Contract, is greater than 241.6 million
tons, AVG will pay LGA US$0.80 per additional measured ton.
Along with the drilling campaign, the Company will carry out
engineering studies to determine the amount of investments required
to develop the Bom Sucesso Mine. Operations are expected to
commence in 2012 with an estimated production of up to 10 million
annual tons of high-quality iron ore for the export market. MMX
plans to transport the production by railway to LLX Port Sudeste,
in Rio de Janeiro State.
After the closing of the above mentioned Contract, which shall
occur by July 7, 2008, the MMX Sudeste System will be composed of
the Serra Azul Unit -- composed of AVG and Minerminas mines -- and
the Bom Sucesso Mine, and may reach an annual capacity of 25 to 30
million tons as of 2012.
For additional information, please contact ri@mmx.com.br.
MMX Minera��o e Met�licos S.A.
Nelson Jos� Guitti Guimar�es
Chief Financial and Investor Relations Officer
FORWARD-LOOKING STATEMENTS: This material fact contains certain
"forward-looking statements" and "forward-looking information"
under applicable Canadian securities laws concerning the
acquisition operation and the business plan, the operations and
financial performance and condition of MMX, and estimated
production and mine life of the acquired mineral project. Except
for statements of historical fact relating to MMX, certain
information contained herein constitutes forward-looking
statements. Forward-looking statements are frequently characterized
by words such as "plan," "expect," "project," "intend," "believe,"
"anticipate," "estimate" and other similar words, or statements
that certain events or conditions "may" or "will" occur.
Forward-looking statements are based on the opinions and estimates
of management at the date the statements are made, and are made
taking into consideration a number of assumptions and, therefore
are subject to a variety of risks and uncertainties and other
factors that could cause actual events or results to differ
materially from those projected in the forward-looking statements.
Assumptions upon which such forward-looking statements are based on
expectations yet to be confirmed by the research program to be
conducted by the Company, mentioned herein, and are also subject to
the eventual licenses and necessary approvals to develop said
mining project. Assumptions upon which such forward-looking
statements are based on factors and events that are not within the
control of MMX and there is no assurance they will prove to be
correct. Factors that could cause actual results to vary materially
from results anticipated by such forward-looking statements include
changes in market conditions, variations in ore grade or recovery
rates, risks relating to international operations, fluctuating
metal prices and currency exchange rates, changes in project
parameters, the possibility of unanticipated costs and expenses,
failure of plant, equipment or processes to operate as anticipated,
the failure to obtain necessary licenses or permitting, the
acquired mineral project not being integrated successfully or such
integration proving more difficult, time consuming or costly than
expected, and other risks of the mining industry. Although MMX has
attempted to identify the important factors that could cause actual
actions, events or results to differ materially from those
described in forward-looking statements, there may be other factors
that cause actions, events or results not to be anticipated,
estimated or intended. There can be no assurance that
forward-looking statements will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. MMX undertakes no obligation to
update forward-looking statements if circumstances or management's
estimates or opinions should change, except as required by
applicable securities laws. The reader is cautioned not to place
undue reliance on forward-looking statements.
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