Positions Red Crescent to Generate Cash Flow from Its Zinc Projects in 2011
TORONTO, ONTARIO, Jul 05, 2011 (MARKETWIRE via COMTEX) — (NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA)
Red Crescent Resources Limited /quotes/zigman/1318962 CA:RCB -11.25% , a mineral exploration and development company focused on base metals in Turkey, today announced that it has signed an off-take and marketing agreement for all its attributable production of direct shipping ore (DSO) and concentrates with Link Investment and Consulting LLP, a London-based company specializing in the trading, investment and marketing of non-ferrous ores and concentrates. Under the terms of the agreement, Link Investment will also provide Red Crescent a revolving credit facility as well as take an equity position in the Company.
“Our agreement with Link Investment is strategic on a number of levels,” said Mr. Alan Clegg, Chairman, President & CEO of Red Crescent Resources. “It effectively positions us to generate cash flow from our zinc projects in 2011, allows us to diversify our shareholder base and establish an initial revolving finance facility of US$1.8 million. Equally important, our arrangement allows us to tap into Link’s long experience in the trading, investment and marketing of ores and concentrates, which will fill a gaping hole in our intellectual capital base and drive additional value to our operations in time. Combined, these elements will help to accelerate our strategy of becoming a low-cost producer of base metals with diversified projects in Turkey.”
Mr. Cem Elmastas, Founder of Link Investment said. “Following our transaction in D. R. Congo, the agreement with RCR fits the strategy of Link to become a diversified company, assisting miners and investors in structuring custom made solutions in the global markets. We are confident in RCR’s ability to develop its various projects in Turkey, a highly prospective area well known to our team, and in our own ability to continually enhance our support to RCR going forward.”
Key highlights of the off-take and marketing agreement:
1. An Equity Placement - Link Investment has acquired 3,086,734 common
shares in Red Crescent Resources at a price of CAD$0.45/share from SAT
Enerji A.S. a major RCR shareholder indirectly controlled by Chairman &
CEO Alan M. Clegg. The necessary regulatory announcement and insider
trading report for this placing has been made on SEDI.
2. Pre-Export Revolving Finance Facility - Link Investment has granted to
Red Crescent an initial facility of US$1.8m for the coverage of
equipment purchase and production of DSO and concentrates at its Hakkari
and Tufanbeyli projects.
3. Extension of Pre-Export Revolving Finance Facility - subject to the
successful operation of DSO and Concentrate supplies as envisaged from
September 2011 onwards, Link will make available a further minimum
US$1.8m to be invested in increasing saleable production. It is the
stated intention of Link to increase the revolving financing by up to
US$4.0m.
4. Equity Option Award -SAT Enerji A.S. (controlled indirectly by Alan M.
Clegg, Chairman of RCR) has granted Link Investment an exclusive anytime
option to acquire and convert the outstanding principle balance of the
RCR financing facility in consideration for the transfer to Link
Investment of common shares of RCR held by SAT Enerji A.S.
5. Marketing and Sales - it is intended that Link will be appointed as Red
Crescent's exclusive marketing arm through a formal marketing agreement
within three months of the execution of the initial agreement.
Link Investment is a company maintaining its corporate offices in London, United Kingdom and specializes in the trading, investment and marketing of non-ferrous ores and concentrates on a worldwide basis. The key personnel of Link have extensive experience in their fields, maintaining a strong global network of contacts with investors, producers, consumers and international merchants, as well as a strong history of working in Turkey.
Alan Clegg, a Qualified Person as defined by National Instrument 43-101, has reviewed and verified the technical information contained in this news release.
The statements made in this press release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company’s expectations and projections.
About Red Crescent Resources
Red Crescent Resources /quotes/zigman/1318962 CA:RCB -11.25% is a Turkey-based junior mining company targeting historically inaccessible areas where no modern application of exploration techniques or technology has been applied, with high potential for discovery of significant base metal deposits. For more information, please visit: www.redcrescentresources.com .
Contacts:
TMX Equicom
Joe Racanelli
416 815 0700 ext 243
jracanelli@equicomgroup.com
Red Crescent Resources
Alan Clegg
+90 530 662 8964
+27 82 469 8378
+90 312 448 2926 (FAX)
www.redcrescentresources.com
SOURCE: Red Crescent Resources Limited
mailto:jracanelli@equicomgroup.com
