Changes at Macarthur Minerals
VANCOUVER, BRITISH COLUMBIA--(Marketwired - April 28, 2015) -
THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO UNITED STATES SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Macarthur Minerals Ltd. (TSX:MMS)(OTCQX:MMSDF) (the "Company" or "Macarthur Minerals") is pleased to provide an update on the Company's projects and directors for 2015.
Macarthur's President, Chairman and CEO, Alan Phillips commented that, "The Company's projects in Western Australia have been caught in the perfect storm and no efforts to re-work or re-evaluate the projects will result in a short term commercial outcome at the prevailing iron ore spot price. The Company is better placed than most small iron ore companies, as it has not commenced production nor has it committed to a major capital expenditure program.
Since late 2014, Macarthur has been actively:
- evaluating its core tenement portfolio and actively seeking a joint venture partner to offset the holding costs of its projects;
- pursuing alternative development scenarios; and
- identifying counter cyclical investments that complement Macarthur's capabilities.
The Company's Ularring Hematite Project still remains a valuable asset, because of its advanced status . For the immediate future, the focus is on securing the core project assets and waiting for fairer winds, as well as looking for new project opportunities."
Organizational Re-Structure
Since 2013, Macarthur has been reducing its geological, engineering and environmental teams as the Ularring Hematite Project completed its 2012 Prefeasibility Study(1) and obtained environmental approvals(2). In 2015, another round of re-structuring has occurred that will retain a core technical and commercial team focused on new project evaluation.
The Company, in the short term has reduced expenditures to predominately its project holding costs and maintaining key personnel. The Company has a cash balance of circa $3m as at 31 March 2015 and has no debt or significant liabilities.
At Board level, Non-Executive Directors, Messrs. Toigo, Starink, Patricio and Wall have resigned from the Board, as their role in the development of the Ularring Hematite Project draws to a conclusion.
In their place, two new non-executive directors have been appointed to the Board, Mr Earl Evans and Mr Cameron McCall. Messrs. Evans and McCall both have new project development focus and an extensive network of private and institutional investors to support the next stage in Macarthur's development.
Mr Evans has held a range of management and executive roles throughout his 23 year career within the Financial Services industry. He has extensive experience as an investment banking executive including as Executive Director within the Macquarie Group Limited for 11 years spending the last 5 years in Canada as head of Banking and Financial Services for North America. Mr Evans has significant previous experience as a board director and has vast international and Australian based business expertise and relationships. Mr Evans is currently a Director of Shaw's Stockbroking, and head of the Private Wealth Division.
Mr McCall has a wealth of experience across the financial services and commercial property industries within Australia and internationally. He has been providing investment advice, equity capital raising and share trading for over 17 years to corporate entities and private clients at Hartley's Limited and Macquarie Bank Limited. Mr McCall has during his 40 year career built an extensive network of international and Australian based high net worth individuals and corporate entities. Mr McCall is currently running a corporate advisory business providing advice on asset acquisition and capital raising to international and Australian based organisations.
Further, Mr. Joe Phillips the current COO, has taken over the role of CEO. Both Mr. Joe Phillips and Mr. David Taplin, the current CFO, General Counsel & Company Secretary, are appointed as Executive Directors. The former CEO, Alan Phillips, will remain as Executive Chairman.
All directors will be subject to re-election at the Company's Annual General Meeting.
The Company wishes to thank Messrs. Toigo, Starink, Patricio and Wall for their significant contribution to the development of the Ularring Hematite Project.
Mr Joe Phillips, the Company's new CEO, commented that, "I am pleased to be leading Macarthur through the next stage of its commercial journey. We are living through interesting times. The injection of new skills at a Board level will see Macarthur meet its full potential."
For the moment these changes will provide the Company with the new direction needed to return value to shareholders.
ABOUT MACARTHUR MINERALS LIMITED (TSX:MMS)(OTCQX:MMSDF)
Macarthur Minerals Ltd. is an Australian based resource development company currently focused on developing its Ularring Hematite Project, located in the Yilgarn iron ore district in Western Australia. The Ularring Hematite Project is located 110 km from rail infrastructure with a direct connection to the iron ore exporting Port of Esperance, Western Australia.
The Ularring Hematite Project has an indicated Mineral Resource of 54.46 Mt at 47.2% Fe and an inferred Mineral Resource of 25.99 Mt at 45.4% Fe (press release dated June 14, 2012; NI43-101 Technical Report dated June 29, 2012). In addition, Macarthur's Moonshine Magnetite Project has an inferred Mineral Resource of 1.3 Bt at 30.1% Fe (press release dated December 15, 2010; NI43-101 Technical Report dated March 25, 2011).
On behalf of the Board of Directors,
MACARTHUR MINERALS LIMITED
Alan Phillips, Executive Chairman
Caution Regarding Forward Looking Statements
Certain statements made and information contained in this press release may constitute forward-looking information and forward-looking statements (collectively, "forward-looking statements") within the meaning of applicable securities laws. The forward-looking statements in this press release reflect the current expectations, assumptions or beliefs of the Company based upon information currently available to the Company. With respect to forward -looking statements contained in this press release, assumptions have been made regarding, among other things, the reliability of information prepared and/or published by third parties that are referenced in this press release or was otherwise relied upon by the Company in preparing this press release. Although the Company believes the expectations expressed in such forward - looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and no assurance can be given that these expectations will prove to be correct as actual results or developments may differ materially from those projected in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include unforeseen technology changes that results in a reduction in iron ore demand or substitution by other metals or materials, the discovery of new large low cost deposits of iron and the general level of global economic activity. Readers are cautioned not to place undue reliance on forward-looking statements due to the inherent uncertainty thereof. Such statements relate to future events and expectations and, as such, involve known and unknown risks and uncertainties. The forward-looking statements contained in this press release are made as of the date of this press release and except as may otherwise be required pursuant to applicable laws, the Company does not assume any obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise.
(1) Press release dated August 16, 2012 and technical report titled "Pre-Feasibility Study Ularring Hematite Project Western Australia" dated September 27, 2012.
(2) Press release dated October 13, 2013.
Contact
Macarthur Minerals Ltd.
Alan Phillips
+61 418 726 230
aphillips@macarthurminerals.com
www.macarthurminerals.com