Ambershaw completes interagency panel briefing and proceeds towards ADEX permit

19.11.18 | Press releases

Ambershaw Metallics Inc ('Ambershaw' or 'AMI') is pleased to announce that an interagency panel briefing has been completed, marking a major milestone in the process towards obtaining the advanced exploration ('ADEX') permit for the Bending Lake magnetite ore deposit. Based on the positive feedback received at the meeting, Ambershaw is satisfied with the progress to date and adjusts its estimates for the timing for the ADEX permit to Q1 2019. Ambershaw has commenced work on updating its bankable feasibility study and commence sample production for evaluation by end users immediately upon receipt of the ADEX permit. 

“Our dialogue with the Ministry of Energy, Northern Development and Mines of Ontario ('MNDM') has been open and good throughout the application process and we are pleased with the outcome of the Interagency Panel Briefing. In parallel we have been working on updating the Bankable Feasability Study building on the significant historic development work carried out and the recent bulk sampling and pelletising tests. Based on the feed-back received, we look forward to proceeding towards obtaining the ADEX permit which will allow further evaluation with end users ,” says D.Saradhi Rajan, CEO of Legacy Hill Resouces Inc. and Chairman of Ambershaw. 

Following the filing of the ADEX application and subsequent documentation, the MNDM called the Interagency Panel Briefing to ensure clarification on all outstanding matters relating to the ADEX application process. The briefing entailed a gathering of all relevant ministries and government stakeholders in a single-window review to discuss any areas of concern that would require further attention in the application review process. 

Based on the requirements set forth by MNDM following the Interagency Panel Briefing, Ambershaw will proceed to finalise the Community Engagement Plan and Closure Plan, the submission of which constitutes the last phase of the ADEX permit application process. Finalisation of the mine Closure Plan and community consultation process is underway and Ambershaw expects to obtain the ADEX permit in Q1 2019.

“We remain confident in the process towards obtaining the ADEX permit and excited to have reached a mature stage of discussion and clarification with all relevant ministries and government and community stakeholders involved in the process. Reaching sample production within the relatively short timeframe which is estimated, will mark a further major milestone for Ambershaw, and for Element as a shareholder,” says Cecilie Grue, CEO of Element. 

Ambershaw will produce super premium DR grade pellets for use in the North American steel production market, through innovative technology for which Ambershaw holds an exclusive license for North America. The ADEX permit applied for will allow for sample extraction of 100,000 tons of mineralised ore, which is expected to yield 20,000 tons of 68% Fe concentrate which will be used to produce the pellets. Pellets produced during the sampling phase will be offered to various steel producers with the aim to secure long-term contracts. Prices for super premium DR grade pellets have continued to be strong in 2018, with trades taking place at the upper end of an average price interval of 240-280 USD/dmt. At Ambershaw's price level for internal budgeting purposes (130 USD/dmt), the Net Present Value is USD 499 million, based on a cash cost estimate of 56 USD/dmt.


This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.


For further information, please contact: 

Cecilie Grue, Chief Executive Officer

Telephone: +47 991 62 486, E-mail: cg@elementasa.com 

Lars Beitnes, Chairman

Telephone: +356 7996 1497, E-mail: lcb@elementasa.com  


About Element | www.elementasa.com 

Element is an innovative project investment company within the mineral sector, which continuously strives to create shareholder value at the lowest possible risk. The company has as strategy to identify undervalued projects, closing in on cash flow, where infrastructure and other basic work, if necessary, have in large, been completed. The company's special focus is linked to projects within new, and usually ground-breaking technology, within its niches. 

Element ASA, Karenslyst Allé 53, 0279 Oslo, Telefon: +47 23 08 23 08 E-mail: ir@elementasa.com


About Ambershaw | www.ambershaw.ca 

Ambershaw is the sole owner of the Bending Lakes deposit in Ontario, Canada, preparing to produce Super Premium DR grade Pellets for delivery to steel manufacturers in North America.