Rogue Initiates Exploration & Development Agreement, becomes Canadian Quartz Supply Agent for two Silicon Metal Companies
TORONTO, ON--(Marketwired - September 06, 2017) -
- Rogue has negotiated an Agreement with PCC SE ("PCC") and Thorsil ehf ("Thorsil") for the identification and development of new quartz deposits
- Under the Agreement, Rogue will identify and present new quartz development targets to PCC and Thorsil
- PCC and Thorsil will direct all Canadian quartz mining asset opportunities to Rogue for further analysis and advancement
- Rogue plans to supply both companies (in addition to other buyers) from the Silicon Ridge Project, plus other quartz deposits, as the demand volume increases and specific metallurgies are required
- Corporate Update Conference Call scheduled for Thursday September 7th, 2017 at noon Eastern
Rogue Resources Inc. (TSX VENTURE: RRS) ("Rogue" or the "Company") is pleased to announce the development of a 3-way Agreement with PCC and Thorsil to identify and advance promising new quartz projects in Canada. PCC is currently constructing a plant in Iceland to produce metallurgical grade silicon ("MgSi"), with an initial capacity of 32,000 tonnes, commissioning in early 2018. Thorsil is developing their own MgSi plant in Iceland, with a capacity of 54,000 tonnes, scheduled to be in production in 2019. Both companies have long-term plans to expand and move into more specialized MgSi production, requiring very specific quartz metallurgy.
Each tonne of MgSi requires between 2.8 and 3 tonnes of high quality quartz. Rogue's Silicon Ridge Project in Quebec, for which a Development Decision and Production is planned for 2018, has an initial planned production capacity of 182,500 tonnes of high quality quartz*. In addition to Silicon Ridge, Rogue continues to analyze other quartz deposits with varying volume potential, cost structure and metallurgical characteristics.
As part of the Agreement, Rogue will become the exclusive Canadian quartz supply agent for both PCC and Thorsil except on a limited number of projects identified by PCC and Thorsil prior to the formation of this Agreement. In addition, the MgSi producers will each direct Canadian quartz opportunities to Rogue, for collaborative development.
"We look forward to continuing our work with Rogue, we appreciate the methodical approach they have taken to advancing their Silicon Ridge Project and want to work with them to apply this approach to additional assets," said Dr. Peter Wenzel, Executive Vice President of PCC. "As we grow, and our requirement becomes larger, we are always interested in identifying and developing the best supply options."
"As we advance our own project in Iceland, it is imperative that we ensure safe and reliable supply of all our raw materials," said Hákon Björnsson, Managing Director of Thorsil, "The silicon metal business requires creative thinking to develop advantages with sourcing raw materials and we believe working with Rogue will help us achieve that."
"This partnership brings multiple benefits to our Company," said Sean Samson. "We want to be close with our customers and this type of partnership gets us working on their behalf with the challenge of sourcing great raw materials that meet their volume and metallurgical requirements. This also differentiates us in the market and hopefully opportunities will continue to present themselves as a result."
* -- Any production decision will be based on the recently completed PEA Study, press released on May 23, 2017. The PEA is preliminary in nature and includes inferred mineral resources that are too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that PEA results will be realized. Mineral resources are not mineral reserves and do not have demonstrated economic viability.
Corporate Update Conference Call
Rogue is pleased to host a conference call with management tomorrow at noon Eastern (9am Pacific, 6pm in Western Europe). Rogue CEO Sean Samson and VP, Technical Paul Davis will give a corporate update followed by a brief question and answer period. Interested investors should forward questions in advance to questions@rogueresources.ca. Dial-in numbers to access the conference call as well as a corporate presentation are available on our webpage, www.rogueresources.ca. A playback of the call will be available online.
About Rogue Resources Inc.
Rogue is a mining company focused on identifying positive cash flow opportunities. Not tied to any metal, it looks at rock value and good grade deposits that can withstand all stages of the metal price cycle. The Company remains focused on advancing its Silicon Ridge Project, exploring its other assets, including Radio Hill, and identifying additional assets to meet its criteria. For more information visit www.rogueresources.ca
About PCC
PCC is a German investment company, currently developing a silicon metal plant in HúsavÃk, Iceland to produce up to 32,000 tonnes per year of metallurgical grade silicon, with start-up planned for early 2018.
About Thorsil
Thorsil is an Icelandic company and plans to build and operate a silicon metal plant at Helguvik, in Reykjanes municipality (Reykjanesbaer) on the Reykjanes peninsula, to produce up to 54,000 tonnes per year of metallurgical grade silicon with start-up planned for second quarter 2019.
On Behalf of Rogue Resources Inc.
Sean Samson
President & CEO, Director
Neither the 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 news release.
Cautionary Note Regarding Forward-Looking Statements: Certain disclosures in this release may constitute forward-looking statements. In making the forward-looking statements in this release, the Company has applied certain factors and assumptions that are based on the Company's current beliefs as well as assumptions made by and information currently available to the Company, and that actual results are consistent with management's expectations. These statements include, among others, statements with respect to development activities and their timing, resource estimates and potential mineralization, the PEA, including estimates of capital costs, anticipated internal rates of return, mine production, processing recoveries, mine life, estimated payback periods and net present values, timing with respect to permitting of the Project, the budget and timing with respect to planned drilling on the Company's Radio Hill property and the identification and potential acquisition of other assets. Although the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect, and the forward-looking statements in this release are subject to numerous risks, uncertainties and other factors that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Such risk factors include, among others, those matters identified in its continuous disclosure filings, including its most recently filed MD&A, changes in regulatory environments, environmental compliance, operating and capital cost escalation, ability to raise project financing and silica pricing. Additional factors include delays in obtaining or inability to obtain required regulatory approvals, permits or financing, risk of unexpected variation in mineral resources, grade or recovery rates, processing plant failure, equipment or processes to operate as anticipated, of accidents, labour disputes, the risk that estimated costs will be higher than anticipated, the risk that the proposed mine plan and recoveries will not be achieved, equipment breakdowns, bad weather timing and success of exploration and development activities, mineral resources are not as estimated, title matters, third party consents, operating hazards, product prices, political and economic factors, competitive factors and general economic conditions. Should any of such assumptions prove to be incorrect or such risks become actual events, than the value of the Company's securities may decline. Readers are cautioned not to place undue reliance on forward-looking statements. The Company does not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.
Contact
For additional information regarding this news release please contact:
Sean Samson
sean@rogueresources.ca