ARSMF - Ares Strategic Mining Inc. Concludes an MOU with Cremer Erzkontor North America
(TheNewswire)
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CremerErzkontor North America Will Act as Sales Agent for Metspar Productionfrom Ares Fluorspar Mine in Utah
Vancouver, British Columbia – TheNewswire - 27 th March 2024 -Ares Strategic Mining Inc. (“Ares” or the “Company”)(CNSX:ARS) (OTC:ARSMF) (FRA:N8I1), announced the signing of an MOUbetween Cremer Erzkontor Inc. (Cremer) and the Company.
Under the MOU, the two firms will negotiate bindingdefinitive agreements for the following:
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Cremer Erzkontor will become ARES’s agent for thesale and worldwide distribution of Fluorspar produced at theCompany’s Lost Sheep Mine in Utah.
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Under a take or pay sales agreement, Cremer will beresponsible for selling all the Company’s expected 50,000 tons peryear production of Metspar, for the next 5 years, with the option ofrenewal at the end of that period.
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Cremer Erzkontor will earn a commission on allsales.
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After suitable due diligence, Cremer Erzkontor will advance US$2,000,000 under a forward saleagreement, to enable the company to meet its working capital andinvestment needs.
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Cremer Erzkontor also has the right of first refusalfor any additional fluorspar products such as acidspar and anyproduction from other mines ARES may acquire.
From Left to Right: James Walker (Ares’ CEO), NiklasLuedemann (Cremer Erzkontor’s Head of North America Region), RobertoWurst (Executive Director at Cremer Erzkontor GmbH & Co. KG),Chris Edkins (Cremer Erzkontor’s Managing Director of NorthAmerica),
Niklas Luedemann, Cremer Erzkontor’s Head of RegionNorth America said: “Having a US source for quality fluorspar is agigantic step in securing the demand of the North American market.Under the agreement we will shorten lead times and eliminate many ofthe uncertainties that come along with importing material.
We are happy to partner up with an experienced companylike ARES to move on to the next steps of this project.”
James Walker, CEO of the Company said: “Thisagreement is a key milestone as we advance towards our fluorsparmining operation. Having a buyer for all the product produced from ourfully permitted mine further derisks the project and provides themarket reassurance that the Company has identified the correctstrategy to achieve success. We have a strategic partner with decadesof global experience selling commodities and raw materials, able tolend Ares its seasoned market expertise. Over the last few yearstraditional sources of fluorspar, such as those from China, haveshifted from being net exporters to net importers, compounding thedomestic difficulty to source the necessary fluorspar to facilitateU.S. industry. Ares will be the only fluorsparmine in the United States able to supply some of this growing domesticdemand as we build a successful venture with our newpartners.”
The Spor Mountain Fluorspar Mine is a fully permittedpast producer. Fluorspar mining is expected to start in 2024. Sales ofmetspar will commence soon after.
About Cremer Erzkontor
Cremer Erzkontor GmbH & Co. KG was established in1915 in the Hanseatic City of Lübeck in Germany. Originally thebusiness focused on trading iron ore from Sweden. From the 1960sonwards the focus shifted increasingly to manganese and chrome ores.In subsequent years the product range and the company's divisions wereexpanded to meet changing needs, new commercial relations wereestablished, and existing ones strengthened. The company grew in everyrespect and with typical Hanseatic cosmopolitanism also expandedinternationally.
Today the trading portfolio of the Cremer ErzkontorGroup comprises almost all natural and synthetic industrial rawmaterials. With our many offices located in Europe, Asia, North andSouth America, they supply traditional and emerging sales marketsaround the globe. In terms of sectors, we focus mainly on therefractory, steel, metallurgical and chemical industries.
Since 2014, Cremer Erzkontor GmbH & Co. KG has beenunder ownership of Peter Cremer HoldingGmbH & Co. KG . This traditionalbusiness is based in Hamburg and has operations worldwide: itspecializes in the international trading, processing, and refining ofagricultural and industrial commodities.
For Further Information on CremerErzkontor North America, contact:
Niklas Luedemann
Head of Region – North America
Cremer Erzkontor N. A. Inc.
2055 Reading Road, Suite 280, Cincinnati, Ohio 45202
M +1 513 620 1492
nluedemann@erzkontor.com
Chris Edkins
Managing Director – North America
Cremer Erzkontor N. A. Inc.
2055 Reading Road, Suite 280, Cincinnati, Ohio 45202
M +1 513 507 4022
cedkins@erzkontor-na.com
About the Spor Mountain FluorsparProject – Delta, Utah
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100% owned – 5,982 acres – 299 Claims.
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Located in the Spor Mountain area, Juab County, Utah,approximately 214 km south-west of Salt Lake City.
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Fully Permitted – including mining permits.
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NI 43-101 Technical Report identified extensivehigh-grade fluorspar with low levels of impurities.
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Mining plan approved by BLM 1
First approved by Rex Rowley – Area Manager, Bureauof Land Management – 24th August 1992.
1 Renewed by Mike Gates – Minerals Program Manager,Bureau of Land Management – 12th December 2016.
ON BEHALF OF THE BOARD OF DIRECTORS OF
ARES STRATEGIC MINING INC.
James Walker
Chief Executive Officer and President
For further information, please contact James Walker byemail at jwalker@aresmining.com
DISCLOSURE AND FORWARD-LOOKINGSTATEMENTS:
Companies typically rely oncomprehensive feasibility reports on mineral reserve estimates toreduce the risks and uncertainties associated with a productiondecision. Historically, situations where the issuer decides to put amineral project into production without first establishing mineralreserves supported by a technical report and completing a feasibilitystudy have a higher risk of economic or technical failure, though someindustrial mineral ventures are relatively simple operations with lowlevels of investment and risk, where the operating entity hasdetermined that a formal prefeasibility or feasibility study inconformance with NI 43-101 and 43-101 CP is not required for aproduction decision. Based on historical engineering work, geologicalreports, historical production data and current engineering workcompleted or in the process by Ares, the Company intends to moveforward with the development of its Utah asset.
Certain information in this newsrelease may contain forward-looking statements that involvesubstantial known and unknown risks and uncertainties. Forward-lookingstatements are often identified by terms such as “will”,“may”, “should”, “anticipate”, “expects” and similarexpressions. All statements other than statements of historical factincluded in this news release are forward-looking statements thatinvolve risks and uncertainties. There can be no assurance that suchstatements will prove to be accurate and actual results and futureevents could differ materially from those anticipated in suchstatements. Important factors that could cause actual results todiffer materially from the Company’s expectations include thefailure to satisfy the conditions of the relevant securitiesexchange(s) and other risks detailed from time to time in the filingsmade by the Company withsecurities regulations. The reader is cautioned that assumptions usedin the preparation of any forward-looking information may prove to beincorrect. Events or circumstances may cause actual results to differmaterially from those predicted, as a result of numerous known andunknown risks, uncertainties, and other factors, many of which arebeyond the control of the Company. The reader is cautioned not toplace undue reliance on any forward-looking information. Suchinformation, although considered reasonable by management at the timeof preparation, may prove to be incorrect and actual results maydiffer materially from those anticipated. Forward-looking statementscontained in this news release are expressly qualified by thiscautionary statement. The forward-looking statements contained in thisnews release are made as of the date of this news release and theCompany disclaims any intention or obligation to update or revise suchinformation, except as required by applicable law.
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