Mammoth Energy Group Signs Option Agreement to Acquire Shares of Grand River Ironsandsadmin
Mammoth Energy Group Signs Option Agreement to Acquire Shares of Grand River Ironsands
New York, NY, April 07, 2014 /FSC/ – Mammoth Energy Group Inc. (MMTE: OTC PINK),today announced that it has signed an initial option agreement to acquire up to 250,000 shares of the privately held Grand River Ironsands. Grand River Ironsands is the majority equity holder of The North Atlantic Iron Corporation.
The North Atlantic Iron Corporation (NAIC) is a joint venture between Grand River Ironsands Partners (GRI) and Petmin Limited of South Africa to develop the mineral sands in the 450 square kilometer site near Happy Valley Goose Bay, Newfoundland. The North Atlantic Iron Corporation is an iron sands to pig iron project with a maiden resource statement indicating an abundant low-cost feedstock for production of a concentrate for conversion into high-purity pig iron.
Petmin has an option on up to 49.9% of NAIC. It has joint management control and its stake in NAIC was 25% at November 2013, following a total investment of $13 million to date. Petmin’s earn-in option is for 40% of NAIC for $25 million with an option on an additional 9.9% at a market-related price.
The project has financial and political support from the Canadian government. The Atlantic Canada Opportunities Agency (ACAO) has invested $500,000 to partly finance the concentrator pilot plant through a repayable loan from ACOA’s Business Development Program.
NAIC produced its first concentrate in August 2012 following the processing of 8,000 tonnes of iron sands through a pilot plant. A continuous smelt test of more than 2000 tonnes of pig iron with Fe content greater than 55% is scheduled for completion in Q2 2013.
The NAIC resource is 594 million tonnes of sand grading at 9.35% heavy minerals, of which 38.02% is Fe2O3 equivalent. The maiden resource statement was based on just 3% of the NAIC claim and to a depth of 15 metres. Deeper drilling by Boart Longyear provides good indications that the resource extends well below 15 metres.
Privately held Grand River Ironsands Partners is currently the majority partner on the NAIC project. Grand River Ironsands Partners largest shareholder is publicly traded Muskrat Minerals, whose management controls both companies.
“This is our first step of many in a new direction,” said William Lieberman, President of Mammoth Energy Group. “It has taken a long time to finally be able to move the company forward, and Mammoth will be continuing to look to invest in larger North American projects that are in or close to production. In the upcoming weeks we will be announcing further developments as we seek to build a transparent, cash flowing company that will build value over time. We expect to close out this first initial option agreement in a very short time frame and have commitments already lined up for this acquisition. This project has been in development for more than ten years and I have followed it closely for a long time. There is a ton of material available on the project and I would encourage shareholders to look to see the depth, financial commitments, and the level of expertise that has moved this project forward in Canada. This is a long term investment with a significant valuation.”
About Mammoth Energy Group Inc. (OTC MARKETS: MMTE) www.mammoth-energy.com
Mammoth Energy Group Inc. is focused on acquiring, developing and operating strategic mining energy reserves in locations throughout the world. With an ever changing shift to alternative energy and fuels Mammoth Energy Group will be prepared to be a leading energy supplier and operator. Mammoth Energy’s goal is to become an important partner as the world’s energy paradigm begins to change throughout the next decade and beyond.
About Grand River Ironsands Incorporation – www.ironsands.ca
Grand River Ironsands Incorporated (GRI) is a privately owned company focused on the ironsands of Labrador first discovered in 1896. Our corporate goals have been focused on what must be done with the iron sands to create economic success and to do so in an environmental leadership perspective. After three years of extensive research, collaboration and assessment – the Company is firmly of the view that it can produce a low cost iron ore concentrate that can be advanced to a high purity iron product. Moving from a model of simply mining heavy mineral sands to making a high purity iron (cast iron, iron ingots, pig iron) has added a valuable dimension.
About Petmin – www.petmin.co.za
Petmin (JSE-PET) is a high-growth multi-commodity mining company which generates cash from operations and pays a dividend to shareholders. It is geographically diversified with mining operations in South Africa and exploration projects in Canada, Liberia and Turkey. Petmin is focused on commodities that support the steel value chain and are required for urbanisation and infrastructure growth. Petmin is South Africa’s leading producer of metallurgical anthracite, and the company is developing a high-potential iron sands to pig iron project in Canada.
Muskrat Minerals – www.muskratminerals.ca
Publicly traded Muskrat Minerals Incorporated (CNSX-YYR) came into existence through the indirect acquisition of 29.9% of the shares of an exciting mineral exploration firm that has developed a model of converting its ironsands into a high purity pig iron. This was viewed as an opportunity consistent with the philosophy behind the founding of the company- identify mineral resource opportunities with the ability to value-add to create a strengthened final product. Muskrat currently holds a 42% stake in Grand River Ironsands.
This press release may contain certain forward-looking statements within the meaning of Section 27A of the Securities and Exchange Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended, and such Forward Looking Statements are intended to be covered by the safe harbors created thereby. Investors are cautioned that all forward-looking statements involve risks and uncertainties. All statements other than statements of historical fact in this announcement are forward-looking statements, including but not limited to the viability of the company’s business plans, the effect of acquisitions on our profitability, the effectiveness, profitability, and the marketability of the Company’s products; the Company’s ability to protect its proprietary information; general economic and business conditions; the volatility of the company’s operating results and financial condition; and other risks detailed in the Company’s filings with the Securities and Exchange Commission.
These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates and projections about the company and the industry. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or to changes in its expectations, except as may be required by law. Although the company believes that the expectations expressed in these forward-looking statements are reasonable, management cannot assure the public that their expectations will turn out to be correct, and investors are cautioned that actual results may differ materially from the anticipated results.
Contact: Ms. Sam Oneka
Phone: (917) 725 – 4171
To view this press release as a PDF file, click onto the following link:
Source: Mammoth Energy Group Inc. (OTC_PINK : MMTE) www.mammoth-energy.com
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Posted: April 7th, 2014 under FSCWIRE.