ICS Finds JV Partner
Abbotsford, Canada (ots/PRNewswire)
ICS Copper
Systems Ltd. (ICX:TSX.V) is pleased to announce that it has signed a
Heads of Agreement with two Zambian companies that have a strategic
relationship with each other, namely JV Civils Ltd ("JVC") and
Chantete Emeralds Ltd ("Chantete"). The principal operations of
these companies encompass bulk earthworks, plant hire, material
transportation, crushing and material handling mainly on the Zambian
Copperbelt. Highlights of the agreement are:
- JVC/Chantete to finance the cost of installation of ICS's 270 cell
EMEW plant in Zambia.
- JVC/Chantete to advance USD 150,000 to ICS.
- JVC/Chantete to supply ore feed to ICS's EMEW plant. JVC/Chantete has
purchased concentrating equipment with the capacity to produce up to
6,000 metric tonne of a copper and cobalt concentrate per month and
is committed to having the first plant commissioned within four
months of the date of this agreement. Ore with a minimum grade of 10%
copper will be supplied. The potential exists to install similar
concentrators on five other targeted sites with a capacity to deliver
in excess of 18,000 metric tonnes per month within an 18 month
period.
- JVC/Chantete to be paid for this concentrate feed on a cost per tonne
basis.
- ICS to be paid a monthly "processing" fee covering owning and
operating costs of the plant.
- ICS to attend to the preparation of an Environmental Preliminary
Brief (EPB) and Environmental Impact Assessment (EIA).
- ICS to supply off-take agreements for the onward sale of the finished
copper and cobalt products.
- ICS and JVC /Chantete will share profits from the JV on a 50/50
basis.ICS to undertake feasibility study for the installation of a larger SXEW plant possibly with the capacity to process 6,000 to 18,000 tonnes per month of copper concentrate with minimum grades of 10% copper. If this study is positive and indicates acceptable returns ICS will undertake the financing of this project.
About JVC
JVC is a leading contracting company on the Zambian Copper Belt. JVC's core competencies include:
- Open pit mining: JVC mines and hauls in excess of 1,000,000 tonnes
per month;
- Bulk material handling: JVC can operate up to 14 separate contracts
concurrently;
- Crushing solutions: The company has an investment in excess of
USD 2,500,000 in mobile and static crushing and screening plants;
- Long term plant hire: from its inception to date JVC has attracted
and retained many blue chip contracts;
- Feeder road construction and maintenance with an eight year track
record;
- Steel fabrication: In house fabrication capability includes items
such as truck buckets and water bowsers and external contracts
including the fabrication and erection of warehouse facilities.JVC currently has a comprehensive asset base valued at over USD 12,000,000 which includes over 122 vehicles. In this fleet are large and small earthmoving vehicles, front end loaders, articulated dump trucks and a large variety of other vehicles. For the year 2008 JVC had a monthly average turnover in excess of USD 2,000,000. The company maintains extensive workshops and stock holdings of equipment spares with approx value of $500,000. JVC has been built up over the last 10 years by Ian Le Roux and Russell Wilken, both Zimbabwean citizens. The company has a dynamic operational style with a strong culture of relationship management.
About Chantete Emeralds Ltd
Chantete Mining Services has core competencies similar to those of JVC and which include:
- Exploration drilling
- Overburden stripping
- Loading and hauling
- Mine management services
- Rehabilitation of mine sites
- Construction of slimes & tailings dams, earth wall reservoirs and
earth dams
- Construction and maintenance of roadsChantete own and operate a large fleet of articulated dump trucks, excavators, dozers, graders, compaction equipment, front-end loaders, water tankers and tractor loader backhoes. This fleet positions the company to progress naturally into civil construction. The same extensive equipment fleet is also available on a plant hire basis. The recent acquisition of two specialized drilling rigs has allowed the company to venture into exploration drilling. Both rigs have fully equipped support vehicles that enhance their service delivery capacity. The company's area of operations was increased in 2008 by a joint venture agreement that allows Chantete Mining Services to operate in the DRC.
Chantete is owned and principally operated by Mr. JC Erasmus.
Graham Chisholm, President and CEO of ICS Copper comments, "We look forward to developing the relationship with JVC and Chantete and to jointly become a significant copper producer in the Copperbelt".
ICS COPPER SYSTEMS LTD.
Signed "Graham Chisholm"
Graham Chisholm, President & CEO
This release includes certain statements that are "forward-looking statements". All statements in this release, other than statements of historical facts that address future exploration, development and production activities, and other circumstances, events and developments that the Company expects, are forward-looking statements. Although management believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, and actual results, events and developments may differ materially from those in the forward-looking statements. The occurrence of certain risk factors, the probability of which is unknown, may also affect actual results, events and developments expected by the Company. 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 release.
For further information: Graham Chisholm, graham@icscopper.com, Office: +1-604-859-3007, Cell: +1-604-302-0746; Jeannette Durand, jeannette@icscopper.com, Web Page: http://www.icscopper.com/
Contact:
For further information: Graham Chisholm, graham@icscopper.com,
Office: +1-604-859-3007, Cell: +1-604-302-0746; Jeannette Durand,
jeannette@icscopper.com