Completion of Investment Ferrum Resources-CMC G...

For Immediate Release: 11 July 2011

 

                                Emerging Metals                                

                           ("EML" or the "Company")                            
 
         Completion of Investment by Ferrum Resources in CMC Guernsey          
            Interest in six Cameroon iron ore exploration licenses             

Further to the announcement made on 7 June, EML is pleased to announce that the
agreement by its 37.23 per cent. associate Ferrum Resources Limited ("Ferrum")
to subscribe for new shares in CMC Guernsey Limited ("CMC Guernsey")
constituting 63.53 per cent. of its issued shares for a cash consideration of
US$13.5 million has now completed.  Regulatory approval in Cameroon approving
the transfer of shares to CMC Guernsey has now been granted and CMC Guernsey
owns, through a 95 per cent. owned subsidiary, six iron ore licenses in
Cameroon (the "Licenses").

The Licenses comprise six permits for the exclusive rights to explore for iron
ore and related substances in each of the Djadom, Dja, Lele, Minko, Sanaga and
Binga zones in Cameroon covering a total area of approximately 6,000 square
kilometres pursuant to exploration permits 234, 226, 225, 224, 236 and 235. 
The Licenses were granted in September/October 2010 and are valid for three
years, renewable for two additional periods of up to two years each.  The
permit area must be reduced by 50 per cent. at each renewal. 

Stephen Dattels, Co Chairman of Emerging Metals, said:

"The investment by Ferrum in CMC Guernsey is a very positive development for
the Company and Ferrum.  CMC Guernsey is the owner of six iron ore concessions
with a total lease area of approximately 6,000 square kilometres.  The 63.53
per cent. interest of Ferrum in CMC Guernsey will provide Ferrum and EML with
an opportunity to realise an early stage discovery, depending on exploration
success, which could have the potential to achieve production within a few
years and create significant shareholder value.  Plinian, the proposed operator
for CMC Guernsey in Cameroon (and a principal shareholder) is headed by Brad
Mills who is a highly regarded mining executive.  As previously announced EML
holds an option to acquire the entire issued share capital of Ferrum.  EML
continues to undertake due diligence on Ferrum's assets (which principally
comprise the Cameroon licenses, exploration applications in Central African
Republic in relation to the more advanced Topa Iron Ore project, and its Sierra
Leone early stage exploration interests)."

For further information

 

Emerging Metals Religare Capital       Evolution                 GTH           
Limited         Markets Limited        Securities                Communications
                                       Limited                                 
                                                                               
Denham Eke      Peter Trevelyan-Clark  Romil Patel               Toby Hall     
                                                                               
                Emily Staples          Tim Redfern               Christian     
                                                                 Pickel        
                                                                         
+44 (0) 1624    [phone]   [phone]       +44 (0) 20    
639396                                                           3103 3902     
                                                                               
Further details on Ferrum

Ferrum is a private British Virgin Islands company established in January 2010.
The company aims to become a major international iron ore mining and
exploration group. Aside from its interest in the Cameroon licenses, Ferrum
currently holds a 75 per cent. interest in five exploration licenses in Sierra
Leone. Ferrum has also applied for two iron ore exploration permits for the
Topa Iron Ore Project in the Central African Republic in which it holds a 75
per cent. interest, with the other 25 per cent. interest held by AXMIN Inc..
The Topa iron ore project consists of iron rich horizons and ridges that have
been defined by mapping and airborne magnetic survey to have a cumulative
strike length that potentially exceeds 75 km. Initial sampling and analysis of
the massive lump hematite-magnetite rock indicates an iron content of 66.7%
with low silica, alumina and phosphorous content. Initial observations suggest
that the enriched iron horizons were derived from schistose banded ironstone,
with schistocity now seen as specular hematite. Results of the initial core
drilling returned high grade iron assays with a weighted average of 63.1% iron
over true widths that range from more than 10 metres up to 52 metres to a
maximum tested depth of 150 metres.   From incorporation to 31 December 2010,
Ferrum made losses of £913,000 and as at that date had net assets of £581,000.