Mining Investments Resources PLC Activity Update and Director Appointment (5182S)

TIDMMIR

RNS Number : 5182S

Mining Investments Resources PLC

08 November 2013

Activity Update and appointment of Director

Mining Investments Resources plc ("MIR" or "the Company") is pleased to announce the appointment of Pavel Kepezhinskas to the board of the Company as Director of Business Development and to provide an update on the projects currently under review for investment.

Primorsky Silver Project

MIR is undertaking negotiations to invest in a company which controls a silver mine in the Primorsky region of Russia, and has signed a letter of intent for an investment which is conditional upon due diligence and technical appraisal. The programme defined in the letter of intent was to restart the existing mine and production plant, which is currently mothballed, which had produced a silver concentrate by flotation for sale to a smelter, and to invest in appraisal and exploration of the company's four licence areas.

The Primorsky region of Russia contains a significant number of unexplored discoveries of high grade silver resources. Dr. Kepezhinskas has been studying the geology of this region since 1992. The Primorsky silver mine was the only producing silver mine in the region during the Soviet Union and MIR believes it provides a platform to implement a wider strategy of exploration and production in one the last unexplored silver provinces in the world.

During the due diligence and technical appraisal stage, MIR's management identified the possibility of upgrading the current processing facilities to increase recovery and replace the necessity to smelt a concentrate. In addition, the Company believes that it should be possible to reprocess tailings from the existing tailings dam. The feasibility of undertaking a plant upgrade and accurately estimating the recovery factors for the ore and tailings is therefore subject to the metallurgical testing of the ore and tailings from the existing mine.

The letter of intent was entered into at a time of higher silver prices. As a result of the considerable turbulence in silver prices and in the financial markets for precious metals companies, the Board has had to consider whether it is prudent to proceed with the transaction and negotiations have been proceeding slowly as a result. However, given the recent current stability in silver prices, increased confidence in the financial markets for silver investments combined with the economic advantages of the plant revamp, which should compensate for the lower silver price, MIR is now in the process of renegotiating terms for a potential investment.

As the plant upgrade possibilities and tailings recovery require confirmation with sampling and testing, MIR has amended its letter of intent so that the first stage involves a programme, estimated to cost around $100,000, to survey the volume and grade of the tailings and to undertake metallurgical test work on the ore and tailings.

At current silver price levels, the Directors believe that the Primorsky silver investment offers attractive economics if approached in a prudent manner. The Primorsky silver mine is an unusual opportunity because it contains some high grade silver veins (C1 resources are grading over 600gms/tonne) and substantial exploration areas which also offer the possibility of identifying additional high grade resources. The directors look forward to making further announcements following the results of the metallurgical test work. MIR expects this programme to take about three months to complete, at which point in time the Company will, subject to funding, decide whether to pursue the investment.

Artel Vostok Strategic Alliance Agreement

MIR has a strategic alliance agreement with Artel Vostok, one of the alluvial miners in the northern Khabarovsk region of far east Russia. This agreement has resulted in an agreement for Artel Vostok to apply for an exploration licence over an area believed to be the source of gold for one its main alluvial operations. As background, Dr Kepezhinskas has been working with Artel Vostok over a period of 18 years and has successfully identified and explored the source of gold for one of Artel Vostok's other alluvial operations at Avleyakan. Accordingly, this transaction is a natural progression of a successful exploration relationship which Dr. Kepezhinskas has provided to MIR.

Exploration licence applications in Russia are subject to approval at the local level for submission to Moscow, an approval process in Moscow and then are published for formal application. The formal application process is held by a National Licence round. MIR's management have been informed that this exploration area has been approved in the region and in Moscow and will be included in the next round of licencing of the Russian Federation. Once a licencing decision has been made MIR will be in a position to make an investment on terms to be agreed.

Investment Portfolio and Financial Position

The Company has investments valued at approximately GBP262,000 in listed securities and cash of approximately GBP228,000 in the bank. MIR has sufficient financial resources available to undertake the planned initial $100,000 investment in the Primorsky Silver project but will need to raise additional funds to make the investments contemplated thereafter.

Board Changes

Pavel Kepezhinskas has been formally appointed to the Board of MIR. Dr. Kepezhinskas is a Russian geologist with considerable experience in the Russian mining industry and was a founder of two other public companies, Silver Bear Resources Ltd and Amur Minerals Corporation.

Michael Nosworthy, Chairman of MIR said: "Whilst progress has been slower than we might have hoped against a backdrop of uncertainty in the mining sector, the delays have enabled us to properly assess various investments with a view to improving the investment terms. In addition we are delighted to now welcome Pavel to the board. His geological and mining experience in our areas of geographic focus will be of great help when finalising these prospective investments. We look forward to making further updates in due course."

Further information on Pavel Kepezhinskas

Pavel Kazimerasovich Kepezhinskas, aged 51, is, or has been a director of the following companies in the last five years:

 
 Current Directorships          Previous Directorships 
 
 Kimberlitt AS                  Crustal Metals LLC 
 Frostbay Limited               Russian Diamonds plc 
 Riphean Platinum Corporation   Silver Bear Resources Ltd 
                                 Croesus Resources Ltd (now renamed 
                                 Amur Minerals Corporation) 
                                 Aurcana Corporation 
                                 Siberian Copper 
                                 Siberian Platinum 
                                 Tundra Gold 
 

As at the date of this announcement Dr. Kepezhinskas interested in 15,000,000 ordinary shares in the Company representing 11.69 per cent. of the issued share capital.

Dr. Kepezhinskas confirms that there is no further information to be disclosed in accordance with the requirements of Schedule 2 paragraph (g) of the AIM Rules.

Enquiries

 
                          Mining Investments Resources 
Michael Nosworthy          plc                           [phone] 
 
                          Mining Investments Resources 
Steve Roberts              plc                             07812043436 
 
 
                          Northland Capital Partners 
Luke Cairns / Matthew      Limited 
 Johnson                   (Nomad and Joint Broker)      020 7796 8800 
 
                          Peterhouse Corporate Finance 
Jon Levinson / Lucy        Limited 
 Williams 020 7469 0936    (Joint Broker)                020 7469 0936 
 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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