Fairmont Consolidates Historic Quartzite Resource at Baie-Comeau
Fairmont (FMR.V) Consolidates Historic Quartzite Resource at Baie-Comeau
– Momentum Public Relations – August 2, 2016
Fairmont Resources Inc. (TSX VENTURE:FMR) (“Fairmont”) announces that it has consolidated a historic resource of 12.3 million short tons (11.2 million tonnes) of 99.20{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} SiO2, 0.41{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Al2O3, and 0.36{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Fe2O3 (from GM Report 39387, 1982, page 6) by staking. The two additional claims staked which contain the historic resource and are contiguous to the original Baie-Comeau Quartzite claims that Fairmont Resources announced in a press release on January 23, 2015 (http://goo.gl/y1eR9z)
Map 1 Location of Baie-Comeau Quartzite Property
Table 1 – Historic Resource of Baie-Comeau Quartzite Property
Reserves | Content {92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} | |||
Millions of short tons | SiO2 | Al2O3 | Fe2O3 | |
Pit 1 (level 810) | 3.5 | 99.3 | 0.39 | 0.036 |
Pit 2 (level 840) | 3.3 | 99.3 | 0.40 | 0.034 |
Pit 2 (level 810) | 6.1 | 99.3 | 0.40 | 0.034 |
Geological Reserve | 12.3 | 99.2 | 0.41 | 0.036 |
Conversion to metric tonnes | 11.2 | 99.2 | 0.41 | 0.036 |
The Historic Resource was completed by Amtec Inc., of Ste-Foy, P.Q. on July 15, 1982 for their client Steep Rock Iron Mines Ltd.
The historical “estimated or drilled indicated tonnage” cited above is mentioned for historical purposes only and uses terminology not compliant with current NI 43-101 reporting standards. The reliability of these historical estimates is unknown but considered relevant by Fairmont as it represents significant targets for future exploration. The qualified person has done sufficient work to classify the historical estimate as a current mineral resource but Fairmont is not treating this historical estimate as a current mineral resource. Historical “estimated or drill indicated” is not equivalent to mineral reserves or resources as it is not supported by at least a preliminary feasibility study. In order to verify this as a current estimate, Fairmont will need to conduct additional exploration work in the form of diamond drilling to verify the historic data.
Map 2 Location of Historic Resource on Baie-Comeau Quartzite Property
Test work by Union Carbide Canada demonstrated that the quartzite from Baie-Comeau was acceptable for ferro-silicon production. In report GM 31179, a letter and results from Union Carbide Canada Limited are reported. Quoting from the letter “although the Al2O3 values tend to be on the high side, the quartz is of acceptable quality for ferro-silicon production”
In the recently filed Silicon Ridge Mineral Resource Estimate NI 43-101 Technical Report, dated July 20, 2016 by Rogue Resources, the optimized pit economic parameters included Ferro Silicon Grade quartz sales pricing at CDN$100 per tonne.
Table 2 Test Results from Union Carbide on Baie-Comeau Quartzite Property
Content {92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} | {92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} | ||||
Hole and Intersection | SiO2 | Al2O3 | Fe2O3 | Cao | Loss on Ignition |
H1 75-80 | 99.05 | 0.12 | 0.25 | 0.01 | 0.3 |
H2 47-53.5 | 98.67 | 0.55 | 0.2 | 0.01 | 0.32 |
H2 94-100 | 98.8 | 0.55 | 0.16 | 0.01 | 0.23 |
H2 134-187 | 98.88 | 0.47 | 0.16 | 0.01 | 0.23 |
H2 189-190 | 98.87 | 0.56 | 0.14 | 0.01 | 0.17 |
H2 419-420 | 99.1 | 0.4 | 0.11 | 0.04 | 0.1 |
H2 947.5-950 | 99.07 | 0.37 | 0.13 | 0.06 | 0.12 |
H2 965-970 | 98.76 | 0.6 | 0.19 | 0.07 | 0.13 |
H4 125-150 | 99.05 | 0.4 | 0.12 | 0.06 | 0.12 |
H4 355-360 | 98.84 | 0.59 | 0.14 | 0.03 | 0.15 |
In GM30063, Watts, Griffis and McOuat Limited (‘WGM’) issued a report to Universal Minerals Corporation on the Baie-Comeau Silica Deposit, dated June 3, 1970. This is an earlier report based on less drilling and testing than the Amtec report of 1982. This earlier report calculated an ore reserved based upon a theoretical open pit with reserves of 3,500,000 tons grading approximately 98.5{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Sio2, with waste rock of 100,000 tons and an estimated average overburden thickness of 1.5 feet. This report also stated that “Potential reserves on the property are many times this figure and could amount into the hundreds of millions of tons” and that “it is recommended that a decision be made to bring the property into production, providing other factors beyond the scope of this report are favourable”.
The Company advises a qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves as such the Company is not treating the historical estimate as current mineral resources or mineral reserves. The resource calculation was part of a Feasibility Report on the Baie-Comeau Silica Deposit of Universal Minerals Corporation, by Surveyer, Nenniger and Chenevery Inc., within the section Report To Universal Minerals Corporation on The Baie-Comeau Silica Deposit, Completed by Watt, Griffis and McOuat Limited date June 3rd, 1970. The historic estimate was based on five diamond drill holes total 3,309 feet and two trenches. The resource was not prepared under current CIM definitions of mineral resources.
Within GM30063 results and conclusions of test work using a 3 stage magnetic separator to increase the SiO2 purity. In the first stage of magnetic separation – free iron and iron bearing particles were liberated. In the second stage biotite and muscovite were separated. And in the third stage muscovite and stained silica particle with inclusions were separated. There was nearly a 7{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} loss of ore through this process, but the iron within the silica was reduced to 0.02{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Fe2O3 with the recommended feed rate.
In GM30063 crushing and grinding testing was completed with Nordberg Manufacturing. Positive crushing and results at a rate of 50 tons per hour were achieved.
Testing by Lakefield Laboratories, also in GM30063, being able to increase silica grade to 99.16{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} SiO2 from 98.36{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} SiO2 head grade in test one, and 99.20{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} SiO2 from a head grade of 98.78{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} SiO2.
The work completed by Surveyer, Nenniger & Chenevert Consulting Engineers of Montreal, Quebec in GM 30063 added that “One of the prime advantages of the deposit is its nearby location to the Baie-Comeau all year round deep sea harbor, giving easy access to the Canadian and United States East Coast markets. The central portion of the deposit is located only 10 miles from the harbor.”
In GM20143 titled Baie-Comeau Quartzite Deposits Geological Report, received by Natural Resources Quebec on June 20, 1967, the author Laurier Juteau, Eng, states that “the quartzite is too massive and homogenous to reflect structure. Some irregular jointing is present, but no pattern was determined.” Juteau also states in the report “it is impractical to calculate the available tonnage which could exceed any anticipated requirements of local markets which may develop. The exposures are extensive and have heights ranging to 500 feet, which would assist any quarrying operations.”
In GM10368, in the Geological Report of Quartzite Deposit Baie-Comeau PQ by C.P. Robertson dated August 31, 1960 early test work demonstrated high grade SiO2 results. In an one set of results, a total of 112 surface samples of approximately 50 lbs each were blasted at five-foot intervals and the average assay of these was 99.0{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} SiO2, 0.77{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Al2O3 and 0.22{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Fe2O3. An additional 21 samples of approximately 10 lbs each were collected and analyzed as two composite samples which returned an average grade of 99.0{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} SiO2, and 0.58{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Al2O3. From diamond drill holes, eleven 10-foot samples were selected of typical quartzite with an average grade of 98.64{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} SiO2, 0.58{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Al2O3 and 0.16{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Fe2O3. From this work it was concluded that the average grade of quartzite that could be produced was in above 98.5{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} SiO2.
Table 3 General Specifications for Different Uses Of Silica
(Source – Sidex (www.sidex.ca) Exploring for silica in Quebec)
The historical “estimated or drilled indicated tonnage” and metallurgical, market studies, and other test work cited above is mentioned for historical purposes only and uses terminology not compliant with current NI 43-101 reporting standards. The reliability of these historical estimates is unknown but considered relevant by Fairmont as it represents significant targets for future exploration. The qualified person has done sufficient work to classify the historical estimate as a current mineral resource but Fairmont is not treating this historical estimate as a current mineral resource. Historical “estimated or drill indicated” is not equivalent to mineral reserves or resources as it is not supported by at least a preliminary feasibility study. In order to verify this as a current estimate, Fairmont will need to conduct additional exploration work in the form of diamond drilling to verify the historic data.
All of the GM reports referenced to in this release are available: http://sigeom.mines.gouv.qc.ca/
Granitos de Badajoz (GRABASA)
Fairmont Resources is still in discussions with funding groups in the UK, Canada and USA with respect to the acquisition of Grabasa. Fairmont will provide an update on funding when agreements are in place.
Roger Ouellet, P. Geo, a Qualified Person as defined by NI 43-101, has reviewed and approved the technical information in this press release.
About Ferrosilicon
Ferrosilicon (FeSi) is used to remove oxygen from the steel and as alloying element to improve the final quality of the steel. Silicon increases namely strength and wear resistance, elasticity (spring steels), scale resistance (heat resistant steels), and lowers electrical conductivity and magnetostriction (electrical steels). Special FeSi like low Al, High Purity and low C ferrosilicon are used in the production of special steel qualities for transformers/motors, ball bearings and shock absorbers, tire cord steel and in stainless steel.
About Fairmont
Fairmont Resources Inc. is a rapidly growing industrial mineral and dimensional stone company trading on the Toronto Venture Exchange symbol FMR.
Fairmont’s Quebec properties cover numerous occurrences of high-grade titaniferous magnetite with vanadium, with the Buttercup property having a permit to quarry dense aggregate. Where these occurrences have been tested they have displayed exceptional uniformity with respect to grade. Fairmont also controls three quartz/quartzite properties, with the Forestville property having independent end user testing confirming the suitability of quartzite from Forestville for Ferro Silicon production. Fairmont is also in the process of acquiring the assets of Granitos de Badajoz (GRABASA) in Spain which includes 23 quarries and a 40,000 square metre granite finishing facility that has produced finished granite installed across Europe.
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China’s Jien Nickel Industry acquire Canadian Lithium Company for 513 million yuan
Jien Nickel Industry: 513 million yuan acquisition of Canadian Lithium miner
June 24, 2016 release night announced that its wholly owned subsidiary “Jean international investment Limited” to establish a wholly-owned subsidiary, 9554661 Canada Inc. and RB Energy Inc., Quebec Lithium Inc. liquidation receiver KSV Kofman Inc. signed an “asset purchase agreement” to acquire Quebec Lithium Inc the main assets of.
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Fairmont cheers Chinese firm’s purchase of RB Energy
Fairmont (FMR.V) cheers Chinese firm’s purchase of RB Energy
– Momentum Public Relations – June 22, 2016
Fairmont Resources Inc. (TSX VENTURE:FMR) (“Fairmont”) is encouraged by the court approval yesterday of the asset purchase agreement of RB Energy Inc. by Jilin Jien Nickel Industry Co.
RB Energy, who once claimed its Quebec mine would produce “the highest-quality lithium carbonate in the world,” was forced to halt operations in October, 2014, after failing to complete a much-needed financing. Subsequent attempts to raise financing proved to be very difficult due to market conditions at the time for Canadian resource companies. Specifically, Investment Quebec and/or KSV Advisory held discussions with 26 parties regarding the potential sale of RB Energy.
Jilin acquired the Quebec lithium mine for an undisclosed amount, but it is estimated that approximately $150-million to $200-million in additional capital will be required to take the lithium project to its production stage.
Michael Dehn, president and chief executive officer of Fairmont Resources, stated the following regarding the significance of this deal for both the lithium industry and Fairmont’s Rome lithium property: “Fairmont is very encouraged by the acquisition of the past-producing Quebec lithium mine and mill by Jilin Jien Nickel, as it provides third party validation of Fairmont’s decision last month to option of the Rome lithium property, which borders the property acquired by Jilin Jien. Rome added shareholder value at the time of its option, and we believe this acquisition of the bordering property will add further near- and long-term value.”
Proximity of RB Energy mine to Fairmont’s Rome lithium property
The Rome lithium property is located approximately 60 kilometres north of Val d’Or, Que. The property is contiguous to the north and south of RB Energy’s Quebec lithium mine, with published measured and indicated resources (at a cut-off of 0.6 per cent lithium oxide) of 41,556,000 tonnes at 1.09 per cent lithium oxide, and an inferred resource of (at a cut-off of 0.6 per cent lithium oxide) of 17,766,000 million tonnes at 1.1 per cent lithium oxide (RB Energy press release of Oct. 11, 2012).
The property is also contiguous to Jourdan Resources’ Vallee lithium property that drilled more than 4,000 metres of core in 2011, and intersected more 100 pegmatite and aplite dikes. Jourdan Resources intersected values of up to 1.187 per cent lithium oxide over 5.5 metres (Jourdan Resources press release of Oct. 24, 2012).
For additional information on the Rome lithium property, please see the press release dated May 26, 2016, on the company’s website.
We seek Safe Harbor.
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Fairmont Closes Non-Brokered Private Placement
Fairmont Closes Non-Brokered Private Placement
– Momentum Public Relations – June 8th, 2016
Fairmont Resources Inc. (TSX VENTURE:FMR) (“Fairmont”) is pleased to announce it has closed its previously announced private placement (the “Private Placement”) by issuing 8 million units (the “Units”) at a price of $0.06 per Unit for gross proceeds of $480,000. Each Unit consists of one common share (a “Share”) and one half Share purchase warrant (a “Warrant”), with each full Warrant will entitle the holder to purchase one Share for a period of 12 months at an exercise price of $0.10 per Share (the “Warrant Term”).
Fairmont may accelerate the Warrant Term for the outstanding but unexercised Warrants such that the Warrant Term shall expire at 5:00PM Pacific Time on the day that is 30 calendar days after the date that Fairmont first issues the Acceleration Notice. In order to exercise the acceleration rights, (i) the average closing price must have been equal to or greater than $0.20 (subject to adjustment for forward or reverse stock splits, recapitalizations, stock dividends or other changes to Fairmont’s corporate or capital structure) for 10 consecutive Trading Days (the “10 Day Period”) prior to the date that Fairmont exercises the acceleration rights; and (ii) Fairmont must issue a news release announcing its intention to exercise the acceleration rights (the “Acceleration Notice”) within 5 business days after the end of the particular 10 Day Period relied upon by Fairmont in (i).
The securities issued under the Private Placement will be subject to a hold period expiring on October 9, 2016.
Due to strong investor demand, the Company was able to close its Private Placement quickly with 39 placees.
Under the Private Placement, Fairmont paid finder’s fees totaling $18,144 and issued 302,400 share purchase warrants. The finder’s share purchase warrants are on the same terms as the Warrants.
Proceeds of the private placement financing will be used for exploration work on Fairmont’s mineral properties, acquisitions and general working capital purposes.
About Fairmont
Fairmont Resources Inc. is a rapidly growing industrial mineral and dimensional stone company trading on the Toronto Venture Exchange symbol FMR.
Fairmont’s Quebec properties cover numerous occurrences of high-grade titaniferous magnetite with vanadium, with the Buttercup property having a permit to quarry dense aggregate. Where these occurrences have been tested they have display exceptional uniformity with respect to grade. Fairmont also controls three quartz/quartzite properties, with the Forestville property having independent end user testing confirming the suitability of quartzite from Forestville for Ferro Silicon production. Fairmont is also in the process of acquiring the assets of Granitos de Badajoz (GRABASA) in Spain which includes 23 quarries and a 40,000 square metre granite finishing facility that has produced finished granite installed across Europe.
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Fairmont Announces Rome Lithium Property Option
Fairmont Announces Rome Lithium Property Option and Online Marketing and Awareness Program
– Momentum Public Relations –
Fairmont Resources Inc. (TSX VENTURE:FMR) (“Fairmont”) announces that, subject to TSX Venture Exchange approval, it has negotiated an option agreement with a Quebec prospector (the “Optionor”) to acquire a 100{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} interest in the Rome Lithium property, near Val d’Or, Quebec (the “Property”). Accordingly, Fairmont (the “Optionee”) will issue to the Optionor 500,000 shares upon TSX approval and paid the Optionor $25,000 upon a future successful financing.
In order to exercise the balance of the option, Fairmont will be required to (i) issue 500,000 shares on or before the 6 month anniversary of the TSX Venture approval date; (ii) issue 500,000 shares on or before the 12 month anniversary of the TSX Venture approval date; and (iii) incur $150,000 of exploration expenditures within 36 months, $50,000 within the first 12 months after the TSX approval date. The Property will be subject to a 2{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Production Royalty per tonne. The Optionee may purchase one half of the Production Royalty (1{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce}) for one million dollars (Canadian) at any time.
The Rome Lithium property is located approximately 60 km north of Val d’Or Quebec.
The property is contiguous to the north and south of RB Energy’s Quebec Lithium Mine with a published measured and indicated resources (at a 0.60{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Li2O cutoff) of 41,556,000 tonnes at 1.09{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Li2O, and an inferred resource of (at a 0.60{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Li20 cutoff) of 17,766,000 million tonnes at 1.10{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Li2O (RB Energy Press Release of October 11, 2012).
The property is also contiguous to Jourdan Resources Vallee Lithium property that drilled more than 4000m of core in 2011 and intersected more 100 pegmatite and aplite dikes. Jourdan Resources intersected values of up to 1.187{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Li2O over 5.50m (Jourdan Resources Press Release of October 24, 2012).
This option is subject to TSX Venture Exchange approval.
Fairmont Launches AGORACOM Online Marketing and Awareness Program
Fairmont is also pleased to announce that it is implementing an online marketing and awareness program through AGORACOM.
The Company will receive significant exposure through millions of content brand insertions on the AGORACOM network and extensive search engine marketing over the next 12 months. In addition, exclusive sponsorships of invaluable digital properties such as AGORACOM TV, the AGORACOM home page and the AGORACOM Twitter account will serve to significantly raise the brand awareness of the Company among small cap investors.
Fairmont’s President and CEO Michael Dehn stated, “AGORACOM Has proven to be a leader in the online marketing space. We are delighted to have retained their services to expand our online presence.”
Shares for Services Program
Fairmont intends to issue shares for services to AGORACOM in exchange for the online advertising, marketing and branding services (“Advertising Services”). Pursuant to the terms of the agreement, the company will be issuing:
- $10,000 + HST Shares For Services April 30, 2016 for prior preparation of program
- $10,000 + HST Shares For Advertising Services at end of Third Month July 15, 2016
- $10,000 + HST Shares For Advertising Services at end of Sixth Month October 15, 2016
- $10,000 + HST Shares For Advertising Services at end of Ninth Month January 15, 2017
- $8,800 + HST Shares For Advertising Services at end of Twelfth Month April 15, 2017
The number of shares to be issued at the end of each period will be determined by using the closing price of the Shares of Fairmont on the TSX Venture Exchange on the first trading day following each period for which the Advertising Services were provided by AGORACOM.
The agreement/arrangement is subject to TSX Venture Exchange approval.
The term of the Agreement is for 12 months effective immediately. Fairmont will issue a press release after the issuance of shares under the terms of the agreement.
About AGORACOM
AGORACOM is the pioneer of online investor relations, online conferences and online branding services to North American small and mid-cap public companies, with more than 250 companies served. More than just lip service, AGORACOM is the home of more than 808K investors that visited 5.6 million times and read 52.4 million pages of information every year (Average 2008 – 2015).
AGORACOM traffic ranks within the top 0.5{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} of all websites around the world. These traffic results are independently tracked and verified by Google analytics. AGORACOM traffic can be attributed to its strategy of maintaining the cleanest, moderated small-cap discussion as a result of implementing the first ever Investor Controlled Stock Discussion Forums.
AGORACOM Founder, George Tsiolis, publishes the leading blog on small to mid-cap investor relations. His 50 Small-Cap CEO Lessons are a must read for CEO’s looking to increase their education and knowledge about online investor relations.
About Fairmont
Fairmont Resources Inc. is a rapidly growing industrial mineral and dimensional stone company trading on the Toronto Venture Exchange symbol FMR.
Fairmont’s Quebec properties cover numerous occurrences of high-grade titaniferous magnetite with vanadium, with the Buttercup property having a permit to quarry dense aggregate. Where these occurrences have been tested they have display exceptional uniformity with respect to grade. Fairmont also controls three quartz/quartzite properties, with the Forestville property having independent end user testing confirming the suitability of quartzite from Forestville for Ferro Silicon production. Fairmont is also in the process of acquiring the assets of Granitos de Badajoz (GRABASA) in Spain which includes 23 quarries and a 40,000 square metre granite finishing facility that has produced finished granite installed across Europe.
- Published in Fairmont Resources, Mining, News Home
Fairmont holder Eickmeier now holds 11.18 of shares
Early Warning Report Issued Pursuant to National Instrument 62-103 in Respect of the Acquisition of Securities of Fairmont Resources Inc.
– Momentum Public Relations – May 20th, 2016
Douglas Eickmeier, a shareholder of Fairmont Resources Inc. (TSX VENTURE:FMR) (the “Company”), announces that he owns, directly and indirectly, 2,537,500 common shares of the Company, representing 11.18{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} of the issued and outstanding common shares of the Company.
From April 25, 2016 to May 6, 2016, Mr. Eickmeier acquired, directly and indirectly, a total of 382,000 common shares of the Company at a total cost of $30,815.00 through on-market purchases on the TSX Venture Exchange. Immediately prior to the completion of the transactions, Mr. Eickmeier owned 2,255,500 common shares of the Company, representing 9.94{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} of the issued and outstanding common shares of the Company. Immediately after completion of the transactions, Mr. Eickmeier owned 2,537,500 common shares of the Company, representing 11.18{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} of the issued and outstanding common shares of the Company.
The acquisition by Mr. Eickmeier of the common shares of the Company was made for investment purposes. Mr. Eickmeier may increase or reduce its investment in the Company according to market conditions or other relevant factors.
For further information and to obtain a copy of the early warning report filed under applicable Canadian securities laws, please see the Company’s profile on the SEDAR website www.sedar.com.
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Canadian Industrial Mineral Company Prepares for Major European Expansion
Fairmont Resources Prepares for European Expansion with Acquisition of Grabasa Assets
– Momentum Public Relations – Dana Hinders
Fairmont Resources (FMR:tsxv), a prominent Ontario-based industrial mineral and dimensional stone company, wants to become the go-to supplier of dense aggregate, quartzite for ferrosilicon, and granite. To further this goal, they announced plans to acquire the assets of Grabasa (Granitos de Badajoz S.A) from a Spanish court-appointed receiver.
Based in Badajoz, Grabasa operated from 1975 to 2011. The company once served as a primary driver of economic activity in Spain’s Extremadura region. Grabasa was thriving in the early 2000s, undergoing a significant production expansion between 2008 and 2010. Unfortunately, their expansion coincided with the Euro crisis. Eventually, the falling Euro caused the company to be unable to meet its debt obligations. This forced Grabasa into receivership and locked its assets in court proceedings for several years.
During the company’s final five years of operation, Grabasa’s sales of premium dimension stone for European industrial, commercial, and retail and industrial applications averaged EUR 6 million annually. In 2011, average monthly sales were EUR 371,475 and operating costs were EUR 217,600.
The Grabasa acquisition is consistent with Fairmont’s philosophy of building long term cash flow by ramping up production on strategically located projects. Grabasa brings several vital assets into play for Fairmont, including a fully operational processing and finishing facility with 250,000 square meters of annual production capacity. The facility also contains over EUR 2.2 million in state-of-the-art cutting and polishing equipment.
Under the terms of the deal, Fairmont will also gain access to an operational fleet of mining and quarrying equipment as well as 23 premium granite quarry licenses. The licenses are significant because of their location: 18 of the 23 are within 8 kilometres of the processing plant, with the remaining five within 20 kilometres.
With assets from Grabasa, Fairmont will become one of the largest granite producers in Europe. Fairmont plans to restart production at the facility, increasing the previous annual gross operating margin of 30{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} to 40{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} through targeted optimization of staff and equipment. Executives also want to increase sales by strategically targeting undervalued North American and Asian markets.
The total cost of the Grabasa purchase is EUR 4.275 million. The acquisition will be paid for via a combination of debt and equity financing, with the terms to be announced at a later date. Madrid-based Eureka Trading has already paid a deposit of EUR 60,000 on Fairmont’s behalf to secure the transaction. Procana Consulting of Markham, Ontario has also assisted with the transaction and will split a EUR 575,000 payment with Eureka Trading for expenses such as due diligence, translation, negotiation, and court costs.
Although Fairmont’s ability to obtain the capital necessary to commence production and complete the Grabasa acquisition has yet to be verified, the company’s world-class collection of assets continues to attract attention from major end users of industrial minerals throughout the world. Therefore, Fairmont’s future looks bright as it progresses towards commercial production.
Since Fairmont specializes in industrial minerals, its investments have less long term volatility and risk in project development. When compared to precious minerals, industrial minerals have lower pricing variances, easier permitting, and fewer overall development costs. The industrial minerals Fairmont mines are used in applications for infrastructure, agricultural, chemical, and metallurgical projects.
In addition to the assets that are part of the Grabasa purchase, Fairmont controls numerous areas of high-grade titaniferous magnetite with vanadium and three quartz/quartzite properties in Quebec: one near Lac Saint Jean and two along the North Shore of the St. Lawrence River. The Forestville and Baie-Comeau quartzite properties were acquired in January 2015 and optioned with the goal of using quartzite as a raw material for silica metal, high purity glass, fibre optics, and ferrosilicon.
For additional information visit :
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