Ares Strategic Mining Inc. Concludes an MOU With Cremer Erzkontor North America
Ares Strategic Mining Inc. Concludes an MOU With
Cremer Erzkontor North America
• Cremer Erzkontor North America Will Act as Sales Agent for Metspar Production
from Ares Fluorspar Mine in Utah
Vancouver, British Columbia, 27th March 2024. Ares Strategic Mining Inc. (“Ares” or the
“Company”) (CNSX: ARS) (OTC: ARSMF) (FRA: N8I1), announced the signing of an MOU
between Cremer Erzkontor Inc. (Cremer) and the Company.
Under the MOU, the two firms will negotiate binding definitive agreements for the
following:
• Cremer Erzkontor will become ARES’s agent for the sale and worldwide distribution
of Fluorspar produced at the Company’s Lost Sheep Mine in Utah.
• Under a take or pay sales agreement, Cremer will be responsible for selling all the
Company’s expected 50,000 tons per year production of Metspar, for the next 5
years, with the option of renewal at the end of that period.
• Cremer Erzkontor will earn a commission on all sales.
• After suitable due diligence, Cremer Erzkontor will advance US$2,000,000 under a
forward sale agreement, to enable the company to meet its working capital and
investment needs.
• Cremer Erzkontor also has the right of first refusal for any additional fluorspar
products such as acidspar and any production from other mines ARES may acquire.
From Left to Right: James Walker (Ares’ CEO), Niklas Luedemann (Cremer Erzkontor’s Head of North America
Region), Roberto Wurst (Executive Director at Cremer Erzkontor GmbH & Co. KG), Chris Edkins (Cremer
Erzkontor’s Managing Director of North America),
Niklas Luedemann, Cremer Erzkontor’s Head of Region North America said: “Having a US
source for quality fluorspar is a gigantic step in securing the demand of the North American
market. Under the agreement we will shorten lead times and eliminate many of the
uncertainties that come along with importing material.
We are happy to partner up with an experienced company like ARES to move on to the next
steps of this project.”
James Walker, CEO of the Company said: “This agreement is a key milestone as we advance
towards our fluorspar mining operation. Having a buyer for all the product produced from
our fully permitted mine further derisks the project and provides the market reassurance
that the Company has identified the correct strategy to achieve success. We have a strategic
partner with decades of global experience selling commodities and raw materials, able to
lend Ares its seasoned market expertise. Over the last few years traditional sources of
fluorspar, such as those from China, have shifted from being net exporters to net importers,
compounding the domestic difficulty to source the necessary fluorspar to facilitate U.S.
industry. Ares will be the only fluorspar mine in the United States able to supply some of
this growing domestic demand as we build a successful venture with our new partners.”
The Spor Mountain Fluorspar Mine is a fully permitted past producer. Fluorspar mining is
expected to start in 2024. Sales of metspar will commence soon after.
About Cremer Erzkontor
Cremer Erzkontor GmbH & Co. KG was established in 1915 in the Hanseatic City of Lübeck in
Germany. Originally the business focused on trading iron ore from Sweden. From the 1960s
onwards the focus shifted increasingly to manganese and chrome ores. In subsequent years
the product range and the company's divisions were expanded to meet changing needs,
new commercial relations were established, and existing ones strengthened. The company
grew in every respect and with typical Hanseatic cosmopolitanism also expanded
internationally.
Today the trading portfolio of the Cremer Erzkontor Group comprises almost all natural and
synthetic industrial raw materials. With our many offices located in Europe, Asia, North and
South America, they supply traditional and emerging sales markets around the globe. In
terms of sectors, we focus mainly on the refractory, steel, metallurgical and chemical
industries.
Since 2014, Cremer Erzkontor GmbH & Co. KG has been under ownership of Peter Cremer
Holding GmbH & Co. KG. This traditional business is based in Hamburg and has operations
worldwide: it specializes in the international trading, processing, and refining of agricultural
and industrial commodities.
For Further Information on Cremer Erzkontor North America, contact:
Niklas Luedemann
Head of Region – North America
Cremer Erzkontor N. A. Inc.
2055 Reading Road, Suite 280, Cincinnati, Ohio 45202
M +1 513 620 1492
www.erzkontor.com
Chris Edkins
Managing Director – North America
Cremer Erzkontor N. A. Inc.
2055 Reading Road, Suite 280, Cincinnati, Ohio 45202
M +1 513 507 4022
www.erzkontor.com
About the Spor Mountain Fluorspar Project – Delta, Utah
• 100% owned – 5,982 acres – 299 Claims.
• Located in the Spor Mountain area, Juab County, Utah, approximately 214 km
south-west of Salt Lake City.
• Fully Permitted – including mining permits.
• NI 43-101 Technical Report identified extensive high-grade fluorspar with low
levels of impurities.
• Mining plan approved by BLM1
First approved by Rex Rowley – Area Manager, Bureau of Land Management – 24th August 1992.
1 Renewed by Mike Gates – Minerals Program Manager, Bureau of Land Management – 12th December 2016.
ON BEHALF OF THE BOARD OF DIRECTORS OF
ARES STRATEGIC MINING INC.
James Walker
Chief Executive Officer and President
For further information, please contact James Walker by email at [email protected]
DISCLOSURE AND FORWARD-LOOKING STATEMENTS:
Companies typically rely on comprehensive feasibility reports on mineral reserve estimates to reduce
the risks and uncertainties associated with a production decision. Historically, situations where the
issuer decides to put a mineral project into production without first establishing mineral reserves
supported by a technical report and completing a feasibility study have a higher risk of economic or
technical failure, though some industrial mineral ventures are relatively simple operations with low
levels of investment and risk, where the operating entity has determined that a formal prefeasibility
or feasibility study in conformance with NI 43-101 and 43-101 CP is not required for a production
decision. Based on historical engineering work, geological reports, historical production data and
current engineering work completed or in the process by Ares, the Company intends to move forward
with the development of its Utah asset.
Certain information in this news release may contain forward -looking statements that involve
substantial known and unknown risks and uncertainties. Forward -looking statements are often
identified by terms such as “will”, “may”, “should”, “anticipate”, “expects” and similar expressions.
All statements other than statements of historical fact included in this news release are forward -
looking statements that involve risks and uncertainties. There can be no assurance that such
statements will prove to be accurate and actual results and future events could differ materially from
those anticipated in such statements. Important factors that could cause actual results to differ
materially from the Company’s expectations include the failure to satisfy the conditions of the
relevant securities exchange(s) and other risks detailed from time to time in the filings made by the
Company with securities regulations. The reader is cautioned that assumptions used in the
preparation of any forward-looking information may prove to be incorrect. Events or circumstances
may cause actual results to differ materially from those predicted, as a result of numerous known
and unknown risks, uncertainties, and other factors, many of which are beyond the control of the
Company. The reader is cautioned not to place undue reliance on any forward-looking information.
Such information, although considered reasonable by management at the time of preparation, may
prove to be incorrect and actual results may differ materially from those anticipated. Forward -
looking statements contained in this news release are expressly qualified by this cautionary
statement. The forward-looking statements contained in this news release are made as of the date of
this news release and the Company disclaims any intention or obligation to update or revise such
information, except as required by applicable law.