Business
Rio Paranaiba Update
Rio Paranaiba Update.
About this update from Arc Minerals Limited
[{"type":"text","content":"\n\n \n Ortac Resources Limited 07 April 2011 \n \n\nOrtac Resources Ltd / Epic: OTC / Market: AIM / Sector: Mining & Exploration\n07 April 2011\nOrtac Resources Ltd ('Ortac' or 'the Company')\nRio Paranaiba Update\n \nOrtac Resources Ltd, the AIM listed exploration and development company focussed on precious metal projects in Europe, announces a restructuring ('the Restructuring') of the ownership of the Rio Paranaíba iron ore project in Brazil ('Rio Paranaíba' or 'the Project'), in which the Company holds a legacy 77% interest. The Restructuring is designed to unlock the value of the Project whilst enabling Ortac to remain focussed on its core European gold and precious metal assets.\n \nOverview\n \n· Rio Paranaíba exploration licences to be transferred to a BVI registered privately funded vehicle, Paranaíba Minerals Limited ('Paranaíba Minerals')\n· Up to $C2m will be raised from external sources to be used to rapidly advance the Project\no The funding is via a placement of up to 8,000,000 shares at 25c which provides a pre money valuation of Paranaiba Minerals of $C2.2 million \no Participants in the funding will also receive 1 warrant for every two shares exercisable at 35c \no Ortac will retain controlling interest with its 80% pre money stake valued at $C1.6m \n· Ortac to retain majority board control of Paranaíba Minerals\n· Drilling campaign expected to commence imminently following the completion of the fundraising\n· Paranaíba Minerals will have a mandate to evaluate additional iron ore projects in the region - several assets currently being assessed as potential acquisition opportunities\n \nOrtac CEO Vassilios Carellas said, \"This rationalised structure of ownership of the Rio Paranaíba project will enable the board of Ortac to concentrate on the rapid advancement of the Company's core European projects, which includes our flagship Kremnica Gold Project in Slovakia, whilst retaining our guidance and support of the development of this highly prospective iron ore asset through Ortac's retained controlling stake and board representation. In conjunction with this, the proposed funding for Paranaíba Minerals will also provide it with the ability to rapidly ad...