Advanced Explorations Signs MOU with Logistec Stevedoring Inc. 02/18/2013 09:51 PM ET TORONTO, ONTARIO, Feb 18, 2013 (MARKETWIRE via COMTEX News Network) -- Advanced Explorations Inc. (TSX VENTURE: AXI)(FRANKFURT: AE6) (the
"Company" or "AEI") today announced that it has signed a Memorandum
of Understanding (MOU) with Logistec Stevedoring Inc. ("Logistec")
for the further development of AEI's shipping concept, terminal, and
marine services. Logistec and AEI will work jointly on the
development and operation of the terminal facility with its related
infrastructure servicing the Roche Bay Project.
Logistec provides over 6 decades of stevedoring and terminal
operations at its facilities located in 24 ports in North America. In
addition to several other successful projects, Logistec provided
marine and shipping support to Baffinland Iron Mines Corporation
during the bulk sampling program in 2008. The direct Arctic
experience and proven operational expertise in the region make
Logistec the partner of choice for AEI as it relates to formulating a
proper solution for the Roche Bay port facility and putting in place
cost efficient operations.
The MOU also provides that AEI and Logistec will join efforts to
explore financial models and structures with respect to the Roche Bay
port facility as well as the shipping and terminal assets with a view
that such financial models and structures could be self financing,
thereby lowering the capital expenditures necessary to get the Roche
Bay Project into production. This agreement with Logistec strengthens
the Roche Bay development team with respect to a key component and
will materially de-risk the Project, leveraging Logistec's expertise
in Nunavut, combined with a current and relevant operational
understanding of shipping in the region.
The Roche Bay port and shipping concept is an essential key parameter
for the success of the Roche Bay Project. Accordingly, Logistec
provides the experience and efficiency needed to create a sustainable
and scalable port facility to service future potential development at
Roche Bay, Tuktu, and other developments on the Melville Peninsula.
Going forward, this port is going to be an important strategic asset
for AEI, Logistec, and the Government of Nunavut.
The unique coastal location of the Roche Bay project eliminates the
need for transportation infrastructure such as railroads. This
substantial location advantage at Roche Bay has recently been further
highlighted by the railroad uncertainty that has affected the
potential iron ore developments located in the Labrador Trough. Rail
is a key infrastructure bottleneck and places considerable risk and
uncertainty as to when and if these rail-dependant projects can move
forward. AEI's advancement of its port infrastructure and lack of
onerous rail requirements puts AEI in a positive light relative to
these other projects.
John Gingerich, President & CEO, commented:
"As we have seen recently, there is a renewed sensitivity in the
market to project CAPEX and execution. In response to this, AEI has
engaged Logistec to determine the most efficient way to reduce CAPEX
and project risk as it relates to the Roche Bay port facilities. By
utilizing a joint venture structure, AEI is able to bring Logistec on
as a partner that has both the expertise and experience as a cargo
handling solution provider in the Far North, and AEI can focus on its
mining and exploration activities. Both AEI and Logistec feel that
this is an immensely beneficial relationship going forward."
ON BEHALF OF THE BOARD
John Gingerich, President & Chief Executive Officer
ABOUT Advanced Explorations Inc.
Advanced Explorations Inc., based in Toronto, Ontario, is a resource
development company focused on developing its Roche Bay and Tuktu
Iron Ore Projects in one of the world's largest developing iron ore
districts, the Melville Peninsula in Nunavut. The Ocean-based Roche
Bay Project boasts an NI 43-101 compliant resource estimate of over
500 million tonnes outlined within a small portion of the potential
140 km of banded iron formation. A positive feasibility study for the
project's C Zone revealed a net present value of $642M on a base case
5.5 Mtpa start-up concentrate operation and substantial upside
potential including becoming a low quartile cost producer. To date,
the Company has delineated over 1 billion tonnes of iron under NI
43-101 among its Roche Bay and Tuktu deposits and continues to
explore other targeted deposits in areas to the north, south and west
of Roche Bay. The management team has extensive technical,
exploration and Canadian Arctic mining expertise to effectively
develop the high quality iron ore opportunities on the Melville
Peninsula.
This news release also includes forward-looking statements that
involve a number of risks and uncertainties. The information reflects
numerous assumptions as to industry performance, general business and
economic conditions, regulatory and legal requirements, taxes and
other matters, many of which are beyond the control of the company.
Similarly, this information assumes certain future business decisions
that are subject to change. There can be no assurance that the
results predicted here will be realized. Actual results may vary from
those represented, and those variations may be material.
This news release does not constitute an offer to sell or a
solicitation of an offer to sell any securities in the United States.
The securities have not been and will not be registered under the
United States Securities Act of 1933, as amended (the "U.S.
Securities Act") or any state securities laws and may not be offered
or sold within the United States or to U.S. Persons unless registered
under the U.S. Securities Act and applicable state securities laws or
an exemption from such registration is available.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER
(AS THAT TERM IS DEFINED WITHIN THE POLICIES OF THE TSX VENTURE
EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS
RELEASE.
Contacts:Advanced Explorations Inc.(416) 203-0057 x320
SOURCE: Advanced Explorations Inc.
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