EMED Mining posts update on Rio Tinto Copper project

AIM-listed Europe-based minerals development and exploration company EMED Mining Public has published an update on progress at its Rio Tinto Copper project stating that estimated project costs remain within 10 per cent of recently published guidance.

The update stated that operating costs for onsite and offsite operating costs were estimated to have remained within 10% of $1.37/lb as published in the NI 43-101 Technical Report issued by the group in November 2010.

Total costs covering operating, capital and closure costs were estimated to have remained within 10% of "circa US$1.80/lb" published in recent investor presentations.

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Capital requirements were reported to have increased since publication of NI 43-101 Technical Report issued in November 2010 which, the company said, was a result of the increased land footprint.

Harry Anagnostaras-Adams, Managing Director and Chief Executive Officer of EMED Mining, said: "We are poised at a very delicate and exciting stage, working very closely with the authorities in Andaluca and making every effort to expedite the triggering of the project, to start commissioning by the end of 2013 and ramp-up production by the end of 2015.

Funding package

Further to its announcements on November 14th and 28th 2012 relating to a proposed aggregate funding package of $50m with RK Mine Finance (Master) Fund II LP (Red Kite), EMED Mining added that all resolutions proposed at the General Meeting held on Wednesday were passed by the members.

The passing of the resolutions satisfies the penultimate material outstanding condition to the subscription by Red Kite of the second tranche of 13,829,787 new ordinary shares of 0.25 pence each in the company at a price of 14.8 pence per share. The final condition to closing of the second tranche of the Subscription is admission of such new Ordinary Shares to trading on AIM.

Application has been made to the London Stock Exchange for admission which is expected to become effective on December 21st 2012.

Following admission, EMED Mining will have 1,177,165,948 Ordinary Shares in issue and Red Kite will have a holding representing approximately 5.4% thereof.

EMED's share price was up 2.47% to 10.38p at 15:07 on Wednesday afternoon.