VANCOUVER, Jan. 22, 2015 /CNW/ - Flinders Resources
Limited ("Flinders") (TSXV: FDR) announce that
further to the joint news release with Big North Graphite
Corp.("Big North") (TSXV: NRT) of September 2, 2014, October
21, 2014, November 3, 2014 and
December 1, 2014 Flinders has
terminated the binding letter agreement dated August 28, 2014, effective immediately. The
letter agreement has been terminated as a result of Big North
failing to satisfy the due diligence process.
Blair Way, President & CEO
states, "I am very disappointed to be announcing this. The
due diligence process is critical to ensure the legal integrity of
a transaction such as this. The due diligence identified key
issues that could not be resolved so the agreement had to be
terminated. We will continue to look for the correct
asset to add to our company to grow the business beyond the
European market."
On behalf of the Board,
"Blair Way"
Blair
Way, President and CEO
About Flinders Resources Limited.
Flinders is a resource company that owns 100% of the Woxna
Graphite Mine and processing facility, a unique and strategic
European graphite project in central Sweden which restarted production in
2014. The graphite product is primarily being sold to the
European market.
Forward-Looking Information
Certain information in this news release may constitute
forward-looking statements or forward-looking information within
the meaning of applicable securities laws (collectively,
"Forward-Looking Statements"). All statements, other than
statements of historical fact that address activities, events or
developments that the Company believes, expects or anticipates will
or may occur in the future are Forward-Looking Statements.
Forward-Looking Statements are often, but not always, identified by
the use of words such as "seek," "anticipate," "believe," "plan,"
"estimate," "expect," and "intend" and statements that an event or
result "may," "will," "can," "should," "could," or "might" occur or
be achieved and other similar expressions. Forward-Looking
Statements are based upon the opinions and expectations of the
Company based on information currently available to the Company.
Forward-Looking Statements are subject to a number of factors,
risks and uncertainties that may cause the actual results of the
Company to differ materially from those discussed in the
Forward-Looking Statements including, among other things, the
Company has yet to generate a profit from its activities; there can
be no guarantee that the estimates of quantities or qualities of
minerals disclosed in the Company's public record will be
economically recoverable; uncertainties relating to the
availability and costs of financing needed in the future;
competition with other companies within the mining industry; the
success of the Company is largely dependent upon the performance of
its directors and officers and the Company's ability to attract and
train key personnel; changes in world metal markets and equity
markets beyond the Company's control; mineral reserves are, in the
large part, estimates and no assurance can be given that the
anticipated tonnages and grades will be achieved or that the
indicated level of recovery will be realized; production rates and
capital and other costs may vary significantly from estimates; the
Company's decision to restart production at the Woxna graphite
project is based on historical production and the Company's
preliminary economic assessment ("PEA") of the project and the
Company has no plans to first complete a pre-feasibility or
feasibility study on the project, as a result there is an increased
risk of technical and economic failure for the Woxna graphite
project; unexpected geological conditions; delays in obtaining or
failure to obtain necessary permits and approvals from government
authorities; all phases of a mining business present environmental
and safety risks and hazards and are subject to environmental and
safety regulation, and rehabilitation and restitution costs; the
Company does not maintain insurance against environmental risks;
and management of the Company have experience in mineral
exploration but may lack all or some of the necessary technical
training and experience to successfully develop and operate a mine.
Although the Company believes that the expectations reflected in
the Forward-Looking Statements, and the assumptions on which such
Forward-Looking Statements are made, are reasonable, there can be
no assurance that such expectations will prove to be correct.
Readers are cautioned not to place undue reliance on
Forward-Looking Statements, as there can be no assurance that the
plans, intentions or expectations upon which the Forward-Looking
Statements are based will occur. Forward-Looking Statements herein
are made as at the date hereof, and unless otherwise required by
law, the Company does not intend, or assume any obligation, to
update these Forward-Looking Statements.
Preliminary Economic Assessment
The Company advises that it has not based its production
decision on a feasibility study of mineral reserves, demonstrating
economic and technical viability, and, as a result, there may be an
increased uncertainty of achieving any particular level of recovery
of minerals or the cost of such recovery, including increased risks
associated with developing a commercially mineable deposit.
Historically, such projects have a much higher risk of economic and
technical failure. There is no guarantee that production will begin
as anticipated or at all or that anticipated production costs will
be achieved. Failure to commence production would have a material
adverse impact on the Company's ability to generate revenue and
cash flow to fund operations. Failure to achieve the anticipated
production costs would have a material adverse impact on the
Company's cash flow and future profitability.
The Company further cautions that the PEA is preliminary in
nature. No mining study has been completed. Mineral resources are
not mineral reserves and do not have demonstrated economic
viability. There is no certainty that the PEA will be realized.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or the
accuracy of this news release.
SOURCE Flinders Resources Limited