Britannia Mining Plc, a UK based mining development company announced today that an LOI (Letter of Intent) has been formally executed with U.S. public mining company Micron Enviro Systems (Symbol: MSVS), with the expectation of completing a possible merger by year end. Britannia will bring immediate short term value through its Nthale Hill iron ore project, where, commercial mining activity has been conducted since the 1960’s.
The company conducted recent geological explorations over a sample area that uncovered an estimated 4.6 million tons surface ore. It is the company’s intention to ramp up and develop low cost mining activities, that will increase the near term potential of the Company to supply a local and global market with 600,000 mt per annum. Once developed, the associated revenue of the mine is expected to provide inbound cash flows of $60 million per annum. Of the 4.6 million mt estimated, the associated market value is $700 million for Area 1; field exploration is continuing.
Britannia’s value to the proposed merger illustrated by the LOI is immeasurable; expected to immediately enhance Micron operations along with the overall value of the U.S. Company and its shareholder confidence.
- 14 Aug, 2012
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