Woulfe Mining and IMC Strategic Agreement Update
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 06/28/12 -- 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
Brian Wesson (FAusIMM), President, CEO and Director
About Woulfe Mining Corp.
Woulfe is developing the Sangdong tungsten-molybdenum mine which was historically one of the largest tungsten mines in the world and one of the few long life, high grade tungsten deposits outside of China. Woulfe has assembled a highly skilled, in-country, bilingual technical team and a board of directors with an outstanding track record of success.
Woulfe Mining Corp. is a TSX-V listed company.
This press release was reviewed and approved by IMC and their legal advisors.
Forward-looking statements and forward-looking information by their nature are based on assumptions and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. We have made certain assumptions about the forward-looking statements and information and even though our management believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that the forward-looking statement or information will prove to be accurate. Furthermore, should one or more of the risks, uncertainties or other factors materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements or information. These risks, uncertainties and other factors include, among others, the following: commodity price volatility; discrepancies between actual and estimated production, mineral reserves and resources and metallurgical recoveries; mining operational and development risk; litigation risks; regulatory restrictions, including environmental regulatory restrictions and liability; failure to complete the strategic arrangement described in this release, including because of the failure to satisfy the conditions to closing of the transaction, risks of sovereign investment; currency fluctuations; speculative nature of mineral exploration; global economic climate; dilution; share price volatility; competition; loss of key employees; additional funding requirements.
There can be no assurance that forward-looking statements or information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, you should not place undue reliance on the forward-looking statements or information contained herein. Except as required by law, we do not expect to update forward-looking statements and information continually as conditions change and you are referred to the full discussion of the Company's business contained in the Company's reports filed with the appropriate regulatory authorities.
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.
Contacts:
Nicola Street Capital
Nick Smith
Mobile phone +1 (415) 595-0865
nsmith@nicolastreetcapital.com
Woulfe Mining Corp.
Administration Office
+1 604 684 6264
+1 604 684 6242 (FAX)
info@woulfe.com.au
www.woulfemining.com