RENO, Nevada--(BUSINESS WIRE)--EMC Metals Corp. (the “Company” or “EMC”) (TSX: EMC) is pleased to announce it has agreed an out of court settlement to its dispute with Jervois Mining Limited (“Jervois”) in relation to the Nyngan Scandium project in NSW, Australia. The terms of the settlement transfer 100% ownership and control of the Nyngan Scandium project to EMC, in return for cash payments and a percentage royalty payable to Jervois on sales of product from the project.
The binding settlement entered into with Jervois brings to an end all court actions, claims and counterclaims, including claims for damages and legal and other costs.
Highlights of Settlement
- EMC obtains 100% of the Nyngan scandium property, rights and exploration tenements,
- EMC agrees to pay Jervois A$2.6M in cash, with completion no later than June 2014,
- Exploration tenements formally transfer on final payment, but EMC has the right to proceed with development and implementation of the project now,
- Jervois retains a production royalty on the Nyngan project of 1.7% of sales price for scandium and any other products produced from the site,
- The production royalty extends for a term of 12 years, from first production date,
- A minimum annual royalty applies, based on 10 tpa scandium production, and
- The settlement is subject to FIRB approval (EMC 100% ownership)
Mr. George Putnam, CEO of EMC Metals comments:
“We are truly excited to resolve this dispute over Nyngan, to establish full control over the project, and to get back to the business of developing this scandium project. We have work to do to re-establish our position in the markets and update and file our Technical Report on SEDAR, but achieving 100% project control and ownership delivers the opportunity to fast track this project to serve waiting markets.”
About EMC Metals
EMC owns a 100% interest in the Springer tungsten mine in Nevada, USA. The Company recently filed a NI 43-101 PEA on the Springer asset and is following a strategy to seek a near term restart of the facility. EMC also owns a 100% interest in the Carlin Vanadium property near Carlin, Nevada. Both the Springer and Carlin Vanadium properties have current NI 43-101 Technical Reports filed on SEDAR, copies of which are available on the Company website. In addition, EMC owns a 100% interest in both the Tordal Scandium and Hogtuva Beryllium properties in Norway where we continue exploration for scandium and REE minerals.
In early 2012, EMC’s 50% earn-in on the Nyngan Scandium Project was rejected by our Australian JV partner, Jervois Mining Limited. The dispute arising from that rejection is now settled, and EMC now controls 100% of this project, with a Technical Report on resources filed on SEDAR.
The technical information in this news release has been reviewed by Willem Duyvesteyn, a Qualified Person as defined by National Instrument NI 43-101. Mr. Duyvesteyn is employed by EMC Metals Corp.
For additional information please contact:
EMC Metals Corp.
Investor Relations-Nevada: (775) 355-9500 or firstname.lastname@example.org , or
Sara Boatright Patterson, Windward Global, Charlotte, NC -1-704-588-8600
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
This press release contains forward-looking information that does involve various risks and uncertainties regarding future events. Such forward-looking information can include without limitation statements regarding long term prices for tungsten, our ability to find and retain qualified management and key technical persons to operate the tungsten project, our ability to raise the necessary capital to fund a restart of mining operations, the short term or long term economic feasibility of tungsten production at our Springer facility, and in general statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance. Forward-looking information in this press release is based on estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice, and by other risk factors disclosed in our public filings. Except as required by law, EMC assumes no obligation to update forward-looking information should circumstances or management's estimates or opinions change.