TSX Venture Exchange Trading Symbol: CFI
TORONTO, April 21 /CNW/ - Canada Fluorspar Inc. (the "Company") is pleased to announce that the Government of Newfoundland and Labrador has re-affirmed its commitment to provide $10 million in funding to support the Company's plans for designing and building a deep-water wharf as part of the re-activation of the fluorspar mines and mill at St Lawrence, Newfoundland. The Provincial Government's commitment is contingent on a series of conditions including evidence of a third party feasibility assessment that is satisfactory to the Provincial Government, sufficient financing to establish the fluorspar mine and confirmed long-term sales contracts. The contribution is repayable in future years.
The agreement between the Company and the Province of Newfoundland and Labrador amends an earlier contract signed in 2000. The amending agreement is conditional upon certain timelines being met by the Company, as well as comprehensive regular updates being provided to the Provincial Government.
Lindsay Gorrill, President and CEO of the Company commented that, "The re-affirmation by the Government of Newfoundland and Labrador is an important part of the re-start of the operations at St. Lawrence. We have commissioned SNC Lavelin for the design and environmental work associated with the wharf and we expect to be able to meet the timetable requirements set out in the amending agreement with the province."
Richard Carl, Chairman of the Company added, "Signing the Amending Agreement with the Province of Newfoundland and Labrador is further evidence of the growing relationship between the Province and the Company, and another important step in our efforts to see the project through to production."
Canada Fluorspar Inc. was created through the amalgamation of Burin Fluorspar Ltd. and Rivera Capital Corp. and shall commence trading Wednesday, April 22, 2009 on the TSX Venture Exchange under the ticker symbol CFI.
Also, as part of its fluorspar project the Company is designing a comprehensive occupational and environmental safety plan.
The international fluorspar market consumes approximately 5.6 million tonnes per annum, with an estimated value of US $1.6 billion. The mineral is used in the production of hydrofluoric acid which is the primary feedstock for the manufacture of virtually all organic and inorganic fluorine-containing compounds including fluoropolymers and fluorocarbons. Some examples are anesthetics, non-stick coatings and fire retardant clothing. It is also used in the production of electronic components, aluminum and steel. The Company's initial targeted production, if successful in reopening the fluorspar mines in St. Lawrence, is between 120,000 - 180,000 tonnes annually, representing approximately 2 per cent of world consumption based on historical production figures.
For more information please see: www.canadafluorspar.com
"Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."
Cautionary Note Regarding Forward-Looking Information:
This news release may contain forward-looking statements which may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact, in particular comments relating to expectations relating to the timing and reopening of the Company's fluorspar mine, the development of the Company's assets and expansion of the Company's business plan; the timing for the Company's production of fluorspar; the quantity of fluorspar the Company is able to produce, the demand for fluorspar and the expectations regarding the Company's positioning for sales. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it cannot give any assurance that such expectations will prove to be correct.
Results of the Company, including its ability to reopen its mine and produce fluorspar and achieve the expected timelines and sales expectations, may be affected by a variety of variables and risks associated with the mining and mineral processing industry, such as, loss of market, competition, ability to access sufficient debt and equity capital from internal and external sources, ability to expand in the marketplace, exploration and development plans and results, anticipated capital expenditures and financing thereof, timing of applications and approvals as well as risks and variables associated in general with the Company's industry. As such the future plans and objectives of the Company are forward-looking statements that involve risks and uncertainties and may be based on assumptions that could cause actual results to differ materially from those anticipated or implied in such statements. The Company has, in part, relied on information provided to it by its potential customers, as well as reports and forecasts provided by third parties involved in the industry and by the Company's own assessment of the market for fluorspar in order to develop its forward-looking statements and there is no assurance that the assumptions, forecasts or information relied upon by the Company are correct, or will not be affected by events or circumstances beyond the control of the Company. The Company's forward-looking statements are expressly qualified in their entirety by this cautionary statement. Unless otherwise required by applicable securities laws, the Company does not intend nor does it undertake any obligation to update or review any forward-looking statements to reflect subsequent information, events, results or circumstances or otherwise.