VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 28, 2012) - Woulfe Mining Corp. ("Woulfe" or the "Company") (TSX VENTURE:WOF)(OTCQX:WFEMF)(FRANKFURT:OZ4) today announced that IMC has received a report from its independent consultants appointed to assist in IMC's due diligence of the Sangdong Mine project. The parties will continue to work together and discuss the report and the next steps in connection with IMC's ongoing due diligence and the project. Upon satisfactory completion of due diligence by IMC, and subject to the other terms and conditions of the definitive agreements in respect of the transaction, the parties will have a further 60 days to complete the transaction, unless further extended by mutual agreement.
As previously announced, subject to the terms and conditions of the definitive agreements in respect of the transaction, IMC will acquire a 25% interest in the Company's Korean subsidiary ("Sangdong") holding the Sangdong project for cash consideration totaling C$35 million, which funds will be utilized by Sangdong for the development of the mine and processing plant necessary to mine and process tungsten and Molybdenum ores in 2013.
Also as previously announced, subject to the terms and conditions of the definitive agreements in respect of the transaction, Woulfe and IMC will jointly establish a Korean joint venture company which will build a tungsten refining plant to produce Ammonia Para Tungstate (APT), which joint venture company will be owned 55% by IMC and 45% by Woulfe. IMC has agreed to subscribe for C$19.25 million in equity in the joint venture company and lend to Woulfe C$15.75 million, all of which will be contributed by Woulfe to pay for Woulfe's 45% interest in the joint venture company, and which may be repaid in tungsten concentrate produced by Sangdong. Please see the Company's press release dated February 28, 2012 for additional information regarding the strategic arrangements entered into with IMC.
Brian Wesson CEO and President of Woulfe Mining commented "we have been working closely with IMC's team during this process and look forward to finalizing the arrangements in Korea."
On Behalf of the Board of Directors
Woulfe Mining Corp.
Brian Wesson (FAusIMM), President, CEO and Director