THEMAC PROVIDES UPDATE ON STATUS OF COPPER FLAT PROJECT ACQUISITION AND ONGOING DEVELOPMENT WORK
Electrum Resources plc
ELECTRUM RESOURCES plc
(“Electrum Resources”, “Electrum” or the “Company”)
AIM: ECR
US OTC: MTGDY
THEMAC PROVIDES UPDATE ON STATUS OF COPPER FLAT PROJECT ACQUISITION AND ONGOING DEVELOPMENT WORK
London: 24 November 2010 – Electrum Resources plc is pleased to draw attention to the announcement made today by THEMAC Resources Group Ltd (“THEMAC”) (TSXV: MAC.H) regarding the status of the purchase by THEMAC of Electrum’s exclusive option (the “Option”) over a 100% interest in the Copper Flat copper-molybdenum-gold-silver project in New Mexico, USA.
Highlights:
Patrick Harford, Managing Director of Electrum Resources plc, comments:
“The update given by THEMAC demonstrates that work to advance the Copper Flat project towards the recommencement of production continues on a number of fronts including permitting, resource development and engineering, and we are hopeful that the availability of previous studies will enable the relatively rapid progression of the project to feasibility.”
Electrum’s Interest in THEMAC
Electrum’s shareholding in THEMAC after the purchase of the Option will be 14.5 million common shares, equivalent to approximately 20% of THEMAC’s issued common shares. Electrum will also hold a total of 14.5 million common share purchase warrants of THEMAC. Following the exercise of Electrum’s warrants along with all warrants and options held by other parties, the Company’s interest in THEMAC’s issued common shares would be approximately 22%.
The Financing will be provided to THEMAC by Marley Holdings Pty Ltd or its affiliate Tulla Resources Pty Ltd, and will take the form of a placement of 40 million units of THEMAC at C$0.255 per unit for total proceeds of C$10.2 million. Each unit will consist of one common share and one common share purchase warrant exercisable at C$0.34 for five years. Shares in THEMAC are currently trading at approximately a 100% premium to the Financing price.
Shareholder approval for the Financing will be sought at the THEMAC’s annual and special general meeting to be held on 21 December 2010, and it is anticipated that the Financing and the purchase of the Option will be completed shortly thereafter.
About Electrum
Electrum Resources plc is a mineral and renewable energy development company with interests in Argentina, the USA, Indonesia, Thailand and Australia.
For further information please contact:
Electrum Resources plc
Michael Silver, Chairman Tel: +44 (0) 20 7929 1010
Patrick Harford, Managing Director
Email: info@electrum-resources.com
Website: www.electrum-resources.com
Daniel Stewart & Company plc
Oliver Rigby/Tessa Smith Tel: +44 (0) 20 7776 6550
Old Park Lane Capital plc
Forbes Cutler Tel: +44 (0) 20 7518 2603
Barry Kaplan Associates
Larry Kaplan Tel: +1 732 747 0702