VANCOUVER, British Columbia, June 11, 2019 (GLOBE NEWSWIRE) -- Esrey Resources Ltd. (the “Company”) is pleased to announce that the British Columbia Securities Commission has revoked its previously issued cease trade order and the TSX Venture Exchange (the “Exchange”) has concluded the Company’s reinstatement application and will be issuing a bulletin to reinstate the Company effective Thursday, June 13, 2019.
Subsequent to the reinstatement of trading, the Company intends to seek financing for the next phase of its zinc project. On July 21, 2017, the Company acquired an early-stage zinc business, which included rights to a tailings stockpile in Kosovo, from an unrelated third party. The objective of this zinc business is to commercially recover zinc, lead and other metal by-products from waste materials including tailings and electric arc furnace dust (“EAFD”) produced by steel plants. Since July 21, 2017, the Company has focussed its activities on the construction, commissioning and operation of a zinc pilot plant in Macedonia. The pilot plant is fully permitted and is being used to develop a hydrometallurgical process to efficiently produce zinc and other metals from EAFD on an economically viable scale, by generating engineering data so that the Company can complete the design of a full-scale commercial plant.
The Company spent US$2.5 million (C$3.3 million) for the construction of the pilot plant. In the year ended September 30, 2018 and the six months ended March 31, 2019, the Company incurred a further C$2.9 million and C$0.8 million, respectively, in project development costs to develop the hydrometallurgical process. During the year ended September 30, 2018, the Company also wrote off the stockpile in Kosovo as it has no immediate plans to process that material. An independent third-party engineering study supporting the Company’s economic evaluation of its zinc project is being finalized and the Company will publish the results of the study as soon as it is completed.
The Company also spent C$0.5 million during the year ended September 30, 2018 investigating various industrial sites in Macedonia for a future commercial operation. The Company will apply for site, operational and environmental permits as soon as it selects and secures a suitable location. Applications for operating permits will require a feasibility study that addresses amongst other issues, the potential environmental impact of the commercial operation.
The Company intends to fund future construction and operations of a commercial zinc plant by way of equity and project debt financing, which could include commercial lines of credit, joint venture partnering, and off-take arrangements with international metal traders.
On behalf of the Board of Directors
David Cohen
Chairman, President and CEO
For more information, please contact:
The Chairman: 1-778-373-0103
Email: info@esreyresources.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.
This press release contains certain forward-looking statements and forward-looking information (collectively referred to herein as “forward-looking statements”) within the meaning of Canadian securities laws. All statements other than statements of historical fact are forward-looking statements. Forward-looking information typically contains statements with words such as “anticipate”, “believe”, “intend”, “plan”, “continuous”, “estimate”, “expect”, “may”, “will”, “project”, “should”, or similar words suggesting future outcomes.
Undue reliance should not be placed on forward-looking statements, which are inherently uncertain, are based on estimates and assumptions, and are subject to known and unknown risks and uncertainties (both general and specific) that contribute to the possibility that the future events or circumstances contemplated by the forward-looking statements will not in fact be realized. Actual results will differ, and the difference may be material and adverse to the Company and its shareholders. Risk factors affecting future results include, but are not limited to: financial risks, substantial capital requirements, government regulation, environmental risks, prices, markets and marketing, dependence on key personnel, uninsurable risks, management of growth, competition, issuance of debt, and variations in exchange rates.
Forward-looking statements are based on the Company’s current beliefs as well as assumptions made by, and information currently available to, the Company concerning anticipated financial performance, business prospects, strategies, regulatory developments, the impact of increasing competition, the ability to obtain financing on acceptable terms, and the ability to add feed supply. Although management considers these assumptions to be reasonable based on information currently available, they may prove to be incorrect.
The forward-looking statements contained in this press release are made as of the date thereof and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, except as required by applicable law. The forward-looking statements contained herein are expressly qualified by this cautionary statement.
