Further development of the Canadian Zinc / Lead Project near Wrigley.
Heidelberg. Devonian Metals Inc., has entered into a Joint Venture Agreement with Glencore Canada, a subsidiary of Glencore International AG. Deutsche Rohstoff AG currently has an 47.2% ownership position in Devonian Metals Inc.
Glencore International AG is one of the world’s largest suppliers of a wide range of commodities and raw materials to industrial consumers. The agreement would see Glencore invest a total of $10 million Canadian (approx. 7.5 million Euro) in order to earn a 51% ownership position in the Project. Currently, Devonian Metals Inc. owns 100% of the Project. The Wrigley Joint Venture Agreement will continue over a three year period.
Highlights of the Agreement include:
- Glencore will invest $3 million CAD in 2010. The exploration program will include 4,000 meters drilling and is expected to begin sometime in July.
- Depending on the results, Glencore will invest a further $3.5 million CAD in 2011 and $3.5 million CAD in 2012.
- Once Glencore has invested $5 million CAD, the company will have earned a 25% ownership position in the Project. A $10 million CAD investment will see the percentage rise to 51%.
- At the conclusion of the Agreement, Glencore will hold the right to purchase the remaining 49% holdings of Devonian Metals Inc at a fair market price as well as have 100% of any future production of zinc / concentrate (off-take agreement).
The zinc, lead, silver mineralization near Wrigley in the Northwest Territories was first discovered in the early 1970’s by Cominco. Cominco drilled 42 holes for an amount totaling 5,000 meters. Devonian Metals Inc. (known previously as Aurora Resources Inc.) purchased the property from Cominco in 2003 and began its own exploration program in 2007.
Using previous data from Cominco as well as its own results, Devonian Metals Inc. published its own NI 43-101 compliant report with resource estimate in May of 2010. This report is independent and at arms length to the company. These previously drilled exploration targets have an estimated 3.1 million tons of ore at 9% zinc combined (zinc/lead, at 4% cut-off) in the inferred and indicated categories. The zones are open to depth and in all directions.
Deutsche Rohstoff AG is currently the largest single shareholder in Devonian Metals. The balance of the shares are held by Devonian management as well as private investors from Switzerland, Germany and Canada.
Thomas Gutschlag, Managing Director of Deutsche Rohstoff AG says of the Joint Venture: ‘We’re very happy we could involve such a well known partner as Glencore. This speaks to the quality of the project that such a world wide company would make this investment after having done exhaustive due diligence of the project.’
Glencore International AG (www.glencore.com), is a privately held company owned by its management and employees and headquartered in Baar, Switzerland , As part of its metals and minerals activities, Glencore owns and operates zinc and lead production facilities, in countries including Peru, Bolivia, Argentina, Kazakhstan and Italy.
Devonian Metals Inc. (www.devonianmetals.com) is a Junior Exploration Company based in New Westminster (British Columbia), Canada. Devonian owns 100% of the project rights for the Wrigley property in the Canadian North-West Territories.
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. Production start is scheduled for 2010.
Heidelberg, July 23, 2010
Dr. Thomas Gutschlag
Deutsche Rohstoff AG
Friedrich-Ebert-Anlage 26, 69117 Heidelberg
Tel: 06221/652 4730
Koppelstätter Kommunikation GmbH
Friedrichstraße 2, 76530 Baden-Baden
Tel: 07221/97372 11
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