European Ferro Metals Signs Letter of Intent for Chromium Mines in Albania and Turkey EFM acquires two producing mines; Benaks in Albania; and Isparta in Turkey
For Immediate Release EUROPEAN FERRO METALS LTD. Suite 830 – 1100 Melville Street Vancouver, BC Canada V6E 4A6
European Ferro Metals Signs Letter of Intent for Chromium Mines in Albania and Turkey EFM acquires two producing mines; Benaks in Albania; and Isparta in Turkey
VANCOUVER, BC, June 26, 2014 — European Ferro Metals, Ltd. (CSE: EFM) (the “Company”), a mining exploration and development company, announces that it has entered into a non-binding Letter of Intent dated June 26, 2014 (the “LOI”), to acquire all of the outstanding shares of privately-held First European Minerals Madencilik (“FEMM”). As part of the transaction, the Company will acquire all FEMM assets, subsidiaries, concessions and licenses including, but not limited to, the Benaks mine in the Republic of Albania and the Isparta mine in the Republic of Turkey.
The Company’s target FEMM, through its subsidiaries, owns and operates the Benaks and Isparta mines for their chromium. Currently, operations at both sites mine chromium as chromite through a variety of open pit and underground operations. It is the Company’s intention to invest fresh capital into both mines to modernize their operations and increase their efficiency.
FEMM has retained geological consultants to find, evaluate and acquire other distressed or underfunded mines in both Albania and Turkey. It is FEMM’s opinion that there exists a significant database of additional property acquisitions in both countries.
The Company has commenced legal due diligence on FEMM and is in the process of engaging a qualified person to prepare a formal NI 43-101 report on FEMM’s chromium assets.
Benaks Mine
The Benaks property is located in southeastern Albania and is operational in two locations; an open pit and an underground operation. FEMM has begun additional plans to expand drilling with additional underground workings.
Isparta Mine
The Isparta property is located in southwestern Turkey and is operational with one open pit and several underground operations. There are at least 16 outcrops on the property in addition to the current operations. FEM is currently drilling and working underground to provide an estimate of reserves.
About Chromium
Chromium is the 24th element on the periodic table and is primarily used for making steel stainless. It gives steel a high resistance to corrosion and makes it appear shiny. Chromium is found within the ore mineral chromite (FeCr2O4). Ninety percent of the chromite mined is converted into ferrochrome for use in stainless steel production. Ferrochrome is an alloy composed of iron and chromium, and is created in an electric arc furnace when processing chromite ore. The importance of ferrochrome lies in the fact that there is no substitute for it. China currently consumes the largest amount of ferrochrome, accounting for approximately 50% of the total supply. The price of ferrochrome has risen as a result of increased world demand, mainly stemming from China and India, primarily due to stainless steel production.
About European Ferro Metals
European Ferro Metals is a mining exploration and development company focused on the exploration and development of the Wels property – a gold prospective mining interest in the Whitehorse Mining District of the Yukon Territory. For additional information, please visit www.efmetals.ca.
For further information on the Company, please contact:
Dr. John Veltheer Chief Financial Officer European Ferro Metals Ltd.
Telephone: 604-562-6915
Forward Looking Information
This press release may include forward-looking information within the meaning of Canadian securities legislation, concerning the business of European Ferro. Forward-looking information is based on certain key expectations and assumptions made by the management of European Ferro, including future plans for the exploration and development of the mineral properties of European Ferro. Although European Ferro believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because European Ferro can give no assurance that they will prove to be correct. Forward-looking statements contained in this press release are made as of the date of this press release. European Ferro disclaims any intent or obligation to update publicly any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws. This needs to be expanded for this news release since there are so many more risks.