LOTUS RESOURCES PLC - Trading Statement.
19 June 2009
Lotus Resources Plc
Formation of New Joint Venture
Approval for Sale of Fluorspar from Trial Mining
Lotus Resources Plc, (`Lotus' or `the Company'), a company engaged in the
development of mining and exploration projects in Mongolia and China is pleased
to announce that it has recently signed its fourth fluorspar joint venture
agreement in Mongolia. The new agreement is with Amguulan LLC.
Amguulan owns a Mining Licence in Dornogobi Province, Mongolia. The project has
an approved resource of 170,000 tonnes of fluorspar and application has been
made to transfer the Mining Licence to Lotus Amgalan LLC, the new joint venture
company. An Environmental Assessment and a Mining Plan have been commissioned
and it is expected that following approval of the plan, open pit mining will be
able to commence during the third quarter of 2009.
Under the terms of the agreement, Lotus, through its wholly owned Mongolian
subsidiary Lotus Minerals Mongolia LLC, will own 51% of the joint venture
company in return for an investment of US$80,000.
As has previously been announced Lotus plans to fund this investment and the
commencement of the mining operations via a placing of equity with new
investors, directors and management, in due course.
Lotus also announces that approval has been obtained from the Special
Inspections Authority of the Mongolian Government for the sale of fluorspar
being mined from the trial mining currently under way at the Dai Uul fluorspar
project owned by Lotus Dai Uul LLC. The fluorspar will be sold under a sales
contract agreed with MGB Mining LLC to customers in Russia. The revenue from
this activity is expected to more than cover the current costs incurred by
Lotus Dai Uul LLC.
Simon Longworth, Chief Executive, Lotus Resources Plc commented:
"With this new joint venture the Company should be able to get into full scale
fluorspar mining in a relatively short timeframe. Since January the Company has
secured fluorspar projects at the exploration, advanced exploration and mining
stages, as well as a fluorspar trading agreement which generates cash. This new
agreement is a further step towards our aim of developing a profitable
fluorspar mining and processing business in an area of the world that offers
"In addition to the existing signed joint ventures, Lotus has a number of other
fluorspar exploration and mining initiatives under active consideration."
On 29 January and 27 February 2009 the Company announced that an opportunity
had been identified in Mongolia to develop an interest in the mining and
processing of metallurgical grade fluorspar for use in the steel industry and
as part of the development of this opportunity, three joint venture agreements
have been signed with separate Mongolian partners to conduct exploration for
Lotus Resources Plc
Simon Longworth, Chief Executive
Tel: +976 8800 8983 and +86 (0) 1350 107 0840
James Benson, Finance Director
Tel: +44 (0) 7768 242 660
Mazars Corporate Finance Limited
Stephen Skeels Tel: +44 (0) 20 7063 4000
Michael Padley / Ron Maarshman
Tel: +44 (0) 20 7011 9411