Allied Energy Corporation To Visit Zambia based Tin (Sn) Concession
November 15 2007 - 2:46PM
PR Newswire (US)
NEW YORK, Nov. 15 /PRNewswire-FirstCall/ -- Allied Energy
Corporation (OTC:AGYP) is pleased to announce that Company
representatives will be visiting Zambia next week to inspect the
producing tin, tantalite and mica concessions (mining title and
leases) in the area of Choma, Zambia (collectively, the "Starfield
Mine"). As previously announced, the Company has entered into a
Memorandum of Understanding with Starfield Minerals Ltd.
("Starfield"), for the purpose of acquiring Starfield itself or its
sole asset, being the Starfield Mine. Located in continental
Southern Africa, the Republic of Zambia is one of the world's
principal tin producers and is extensively resource rich in other
metals and minerals (e.g. copper, tungsten and nickel). Allied
Energy Corporation will focus on the profitable development of the
Starfield Mine; however, the Company intends to aggressively pursue
additional acquisitions complimentary to this initial transaction.
Production at the Starfield Mine is currently conducted by
artisanal workers using hand-labour and it is anticipated that
extensive production efficiencies and volume improvement can
quickly be achieved using mechanization. When mining plant and
equipment is installed, production is expected to increase, over
time as implemented, from current nominal levels to potentially 400
tonnes per month of tin concentrate. Due to current and forecast
demand for tin, driven principally by demand in China and India, it
is forecast that the price of tin will be sustained or increased
from current levels. Currently, tin trades for $16,500 per tonne
($7.48 per pound) on the London Metal Exchange. Tin (Sn) is
classified in the group of base metals, which consist of non-
precious metals of great importance and utilization in the
infrastructure of society and industrialization. Due to its low
melting point, Tin easily binds to iron (steel), lead, copper, and
zinc, which makes it an important coating material for prevention
the rusting or oxidation. The main industries that utilize tin are:
food preservation (canned foods), telecommunications, electric
circuits, semiconductors, and architectural engineering. For the
year 2006, the global tin market was estimated at 360,000 tonnes,
which translated into a total global USD value of approximately
$5.5 Billion. This number is expected to grow significantly due to
the rapid modernization and GDP growth of the large and emerging
Asian economies (i.e. China, India, Indonesia). As the Choma site
is expected to be developed further, it is anticipated that most if
not all of the current artisanal miners will be employed in this
venture. Additionally, adjacent sites have been identified for
potential acquisition as part of expanded exploration and
development activities. Production will be delivered to market via
South Africa or Tanzania. Zambian, South African and American based
entities have expressed a willingness to purchase the product.
About Allied Energy Corporation: Allied Energy Corporation is a
publicly traded Company actively seeking a potential acquisition
target within the natural resources sector. On October 31, 2007 the
Company entered into a Memorandum of Understanding to acquire
Starfield Minerals Ltd. or its assets. Starfield Minerals Ltd. owns
a Zambia, Africa based tin and tantalite deposit (the "Starfield
Mine") in the vicinity of Choma, Republic of Zambia. Contact:
Antonio Treminio, Investor Relations, Allied Energy Corporation,
Tel: 212-315-9705, e-mail: Forward Looking Statements (SAFE
HARBOR): This press release may include certain statements that are
not descriptions of historical facts, but are forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933 and Section 21E of the Securities Exchange Act of 1934.
These forward-looking statements may include the description of our
plans and objectives for future operations, assumptions underlying
such plans and objectives, statements regarding benefits of a
proposed acquisition and other forward-looking terminology such as
"may," "expects," "believes," "anticipates," "intends," "projects"
or similar terms, variations of such terms or the negative of such
terms. There are a number of risks and uncertainties that could
cause actual results to differ materially from the forward-looking
statements made herein. Such information is based upon various
assumptions made by, and expectations of, our management that were
reasonable when made but may prove to be incorrect. All of such
assumptions are inherently subject to significant economic and
competitive uncertainties and contingencies beyond our control and
upon assumptions with respect to the future business decisions
which are subject to change. Accordingly, there can be no assurance
that actual results will meet expectations and actual results may
vary (perhaps materially) from certain of the results anticipated
herein. DATASOURCE: Allied Energy Corporation CONTACT: Antonio
Treminio, Investor Relations of Allied Energy Corporation,
+1-212-315-9705,
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