Reno, Nevada - April 10, 2012 - EMC Metals Corp. (the "Company" or "EMC") (TSX: EMC) today announced that the existing sales agency agreement with Laurentian Bank Securities has been terminated as part of a strategic decision to restart operations at the Springer tungsten mine and mineral processing complex located in Nevada, USA. The sale process was concluded after rising tungsten prices made a near-term restart of the mine asset much more attractive to EMC than at the time the asset was first offered for sale.
The Springer tungsten mine was constructed by the General Electric Company ("GE") in the late 1970s, commissioned in 1981, and run for only a short period before being put on care & maintenance status due to weak tungsten prices. The mine, resource and property assets were purchased from GE by a wholly-owned subsidiary of EMC in late 2006. EMC partially reconditioned the asset between 2006 and 2008, spending in excess of $20 million on the surface facilities and resource drilling. Recent review and updating of various re-start plans for the mine, coupled with current pricing levels and market supply dynamics for tungsten, present an encouraging picture on project re-start. Once back in operation, Springer Tungsten would represent the only significant tungsten production source (WO3, in concentrate) in the USA. The property has previously been an important source of tungsten in the USA, first mined in 1918.
Initial work planned for Q2 2012 will include finalizing capital refurbishment estimates, along with development of detailed multi-year mining plans, both for the Sutton I & II areas developed by GE, and also for other areas of the resource where early production may be facilitated. Various discussions are currently underway relating to financing the restart, as well as staffing key positions.
Mr. George Putnam, CEO of EMC commented:
"Springer now represents a significant near term restart opportunity to generate revenue and profits for EMC at this 100% owned asset. We are excited about the longer-term prospects for tungsten demand and pricing, and the unique position Springer represents in the USA as a potential near-term producer of tungsten concentrates."
Mr. William Harris, EMC Board of Directors Chair, commented:
"The Company remains very positive on our considerable scandium development efforts and investment, but we also believe a Springer Tungsten mine restart makes compelling business sense now."
About EMC Metals
EMC owns a 100% interest in the Springer tungsten mine in Nevada, USA. Strong tungsten prices and tight supply conditions, combined with the refurbished mill and existing tungsten resource on the property, support a strategy to seek a near term restart of the Springer facility. EMC also owns a 50% earn-in right on the Nyngan Scandium Project in NSW, Australia and 100% interest in the Carlin Vanadium property near Carlin, Nevada. All three properties have current NI 43-101 compliant resource estimates, available on the Company website and on SEDAR.
On February 29th, 2012, EMC announced that it's earn-in on the Nyngan Scandium Project was rejected and would be taken to dispute with our partner. EMC continues to aggressively pursue our right to a 50% project earn-in, both through direct discussions with our partner and through a formal dispute process. We maintain that all project earn-in conditions outlined under the JV Agreement have been met, and subject to satisfactory agreement, EMC will take all lawful steps to secure its proprietary rights to a 50% joint venture interest.
The technical information in this news release has been reviewed by Willem Duyvesteyn, a Qualified Person as defined by National Instrument 43-101. Mr. Duyvesteyn is employed by EMC Metals Corp.
For additional information please contact:
EMC Metals Corp.
Investor Relations-Nevada: (775) 355-9500 or email@example.com , or
Sara Boatright Patterson, Windward Global, Charlotte, NC -1-704-588-8600
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
This press release contains forward-looking information that does involve various risks and uncertainties regarding future events. Such forward-looking information can include without limitation statements regarding long term prices for tungsten, our ability to find and retain qualified management and key technical persons to operate the tungsten project, our ability to raise the necessary capital to fund a restart of mining operations, the short term or long term economic feasibility of tungsten production at our Springer facility, and in general statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance. Forward-looking information in this press release is based on estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice, and by other risk factors disclosed in our public filings. Except as required by law, EMC assumes no obligation to update forward-looking information should circumstances or management's estimates or opinions change.