Payment of 2nd Tranche of purchase price in shares on 1 September 2011
Heidelberg/Brisbane. To date, the development of the Wolfram Camp Mine in Queensland/Australia remains on schedule. Commissioning is scheduled for the end of September, when the first tungsten and molybdenum concentrates will be produced. The necessary preparations have progressed extremely well in recent months:
- A highly experienced management team has been successfully recruited. This team consists of Ian Kennedy (Operations Manager), Darcy Milburn (Executive Director/Geologist) and Glenn Harrison (Group Metallurgist, responsible for managing the processing plant).
Refurbishment and upgrade of the treatment plant is in progress. All essential modifications and refurbishment work is on schedule for completion by the end of September.
- The mining fleet has been mobilised to site and commencement of ore mining is planned for late August.
- Remedial works on the tailings storage facility are also progressing well and will be completed in September.
- Negotiations with potential purchasers of the concentrates are well advanced.
With the commencement of commissioning, revenues from concentrate sales will occur for the first time. It is planned to reach full production in early 2012. The majority of the revenue from Wolfram Camp will be from the sale of Tungsten concentrate, the price of tungsten concentrate remains close to record highs. Tungsten concentrate prices have not been affected by the decline in industrial metals prices in recent weeks.
Payment of the 2nd Tranche of the purchase price of AUD 3.5 million will be made in shares of Deutsche Rohstoff AG. Planet Metals was informed by Deutsche Rohstoff AG about the decision to opt for payment in shares. On 1 September 2011 Deutsche Rohstoff AG will deliver 180,500 shares, which are created as part of a new capital increase. For 30% of these shares, the holding period is six months, for another 30% the holding period is three months. Deutsche Rohstoff AG will then hold an 85% interest in Wolfram Camp Mine.
Data compilation and review of previous exploration at Wolfram Camp has commenced, aiming to develop drilling targets adjacent to the current open pit resources and significantly extend mine life. Additional exploration incorporating trial geophysical surveys and drilling of priority targets at Bamford Hill is planned as part of the 2011-12 regional program to define rare metals (tungsten, molybdenum, tin and bismuth) within the group’s extensive tenement holdings surrounding Wolfram Camp. The Bamford Hill deposit is geologically similar to Wolfram Camp, and could add to longer-term production from the region.
Dr. Titus Gebel, CEO of Deutsche Rohstoff AG, stated: “Our team around Gus Phillips has done an excellent job and brought forward the development of Wolfram Camp very quickly. It will be a huge success if we succeed to treat concentrates for the first time in September.”
Dr. Thomas Gutschlag, CFO of Deutsche Rohstoff AG, added: “We have decided on the payment in shares to minimise exposure to our liquid assets. The current volatility in the financial markets makes it seem advisable not to take any unnecessary risks. Given the size and significance of Wolfram Camp, we think that an increase of the stock of 4% is by all means acceptable.”
Heidelberg, 16 August 2011
Deutsche Rohstoff AG (Heidelberg, Germany), listed in the Entry Standard segment of Frankfurt Stock Exchange, is establishing a new primary producer. The company’s focus is placed on gold, oil/gas and so called high tech metals such as indium, gallium, rare earth metals, cobalt. All projects are located in countries marked by political stability, the core area being Germany. The business concept is based on redeveloping deposits which have been well explored in the past. A first production started in Georgetown/Australia in January 2011. For more information please visit www.rohstoff.de.
Dr. Thomas Gutschlag
Deutsche Rohstoff AG
Friedrich-Ebert-Anlage 24, 69117 Heidelberg
Tel. (06221) 87 100-0
Fax (06221) 87 100-22
Koppelstätter Kommunikation GmbH
Friedrichstraße 2, 76530 Baden-Baden
Tel. (07221) 97372 11
Fax (07221) 97372 22