AXI

Advanced Explorations Inc. (the "Company" or "AEI") (TSX
VENTURE:AXI)(FRANKFURT:AE6) today announced its involvement in formal
negotiations with three independent companies in respect to partnership on the
development of key Roche Bay infrastructure. The primary focus of these
negotiations is to engage in joint venture and/or long-term purchase and supply
agreements such to reduce up front capital expenditures (Capex) and to stabilize
long term pricing. Such reductions in Capex lower AEI's risk exposure to cost
overages and enables AEI to focus on its core competencies in exploration and
mining. The two key Capex reduction opportunities are the construction of a
turn-key power plant and the joint operation and construction of the Roche Bay
port facility.


The Turnkey LNG Power Solution

In accordance with the Company's plans to move forward with an LNG power
solution at Roche Bay (see press release dated November 1, 2012), AEI has
entered into a memorandum of understanding (MOU) for the joint finance of a
feasibility study on the potential for construction of an LNG power plant at
Roche Bay. Under the proposed definitive agreement with this partner, AEI would
provide the option to the partner to develop and construct the LNG power plant
in consideration for a long-term power purchase agreement. This turn-key LNG
power solution will not only eliminate the associated Capex of constructing the
power plant facilities, but will additionally provide for a potential reduction
in operating cost of up to ($8/t), as identified by the Feasibility Study. With
the high FOB costs currently reported by other Canadian producers (greater than
$60/t), AEI is well situated to remain profitable and provide return on capital
even through low commodity price cycles. In the current market, there is a clear
focus on FOB cost and AEI is situated to become a lower quartile cost producer
because of its ocean-based location.


The Company has also been in advanced level talks with an LNG distribution
company for turn-key supply and storage of LNG at Roche Bay. As currently
established, there is the potential for a truly turn-key solution; that is, AEI
would be able to have a direct source of lower cost power with little to no
Capex being attributed to its construction. 


Port Facilities

The Company is currently negotiating a collaborative port development agreement
with a world class shipping company for the development of a Roche Bay port
facility. This Company represents a key resource and partner to the project
given its direct experience in the region, and moreover, because of its ability
to move the port development into advanced stages in a timely manner. 


By utilizing a joint venture structure, AEI is able to focus on its core
competencies, specifically exploration and mining, while the port operator will
provide for an efficient and cost effective deployment of this key project
asset. The parties contemplate a port facility to align with a start-up 5.5 Mtpy
production rate as set out in the Roche Bay Feasibility Study while providing
for significant future scalability. 


John Gingerich, President & CEO, commented:

"Based on the Feasibility Study results, the power and port deals have the
potential to reduce capital costs by $180 million dollars while still providing
a reduction in overall operating cost. These Capex reduction opportunities have
a direct and positive impact on the project's rate of return and NPV. Over the
last several months AEI management has been focused on optimization of the Roche
Bay 5.5 mtpa program and laying the foundation to either move to an 8 mtpa
start-up or expansion. By further reducing operating cost and enhanced product
quality (greater than 68% Fe concentrate), we are differentiating Roche Bay from
other higher cost (Capex/Opex) iron ore producers."


ON BEHALF OF THE BOARD

John Gingerich, President & Chief Executive Officer

ABOUT Advanced Explorations Inc.

Advanced Explorations Inc., based in Toronto, Ontario, is a resource development
company focused on developing its Roche Bay and Tuktu Iron Ore Projects in one
of the world's largest developing iron ore districts, the Melville Peninsula in
Nunavut. The Ocean-based Roche Bay Project boasts an NI 43-101 compliant
resource estimate of over 500 million tonnes outlined within a small portion of
the potential 140 km of banded iron formation. A positive feasibility study for
the project's C Zone revealed a net present value of $642M on a base case 5.5
Mtpa start-up concentrate operation and substantial upside potential including
becoming a low quartile cost producer. To date, the Company has delineated over
1 billion tonnes of iron under NI 43-101 among its Roche Bay and Tuktu deposits
and continues to explore other targeted deposits in areas to the north, south
and west of Roche Bay. The management team has extensive technical, exploration
and Canadian Arctic mining expertise to effectively develop the high quality
iron ore opportunities on the Melville Peninsula. 


This news release also includes forward-looking statements that involve a number
of risks and uncertainties. The information reflects numerous assumptions as to
industry performance, general business and economic conditions, regulatory and
legal requirements, taxes and other matters, many of which are beyond the
control of the company. Similarly, this information assumes certain future
business decisions that are subject to change. There can be no assurance that
the results predicted here will be realized. Actual results may vary from those
represented, and those variations may be material.


This news release does not constitute an offer to sell or a solicitation of an
offer to sell any securities in the United States. The securities have not been
and will not be registered under the United States Securities Act of 1933, as
amended (the "U.S. Securities Act") or any state securities laws and may not be
offered or sold within the United States or to U.S. Persons unless registered
under the U.S. Securities Act and applicable state securities laws or an
exemption from such registration is available.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Advanced Explorations Inc.
(416) 203-0057 x226

Grafico Azioni (TSXV:AXI)
Storico
Da Mag 2024 a Giu 2024

Grafico Azioni (TSXV:AXI)
Storico
Da Giu 2023 a Giu 2024