Pacific Ore Limited advises that Chinese joint venture partner, Bayannoer Western Copper Co Ltd (‘BWCC’), a subsidiary of Shanghai-listed Western Mining Co. Ltd, (WMC) has terminated a Memorandum Of Understanding (‘MOU’) dated 26 February 2009. The MOU was initially subject to a 21 day due diligence period by both parties, however on 10th March 2009 the Company conceded to an extension of the due diligence period until 30 June 2009. The Company has recently held discussions with WMC representatives in China regarding the MOU. WMC have advised the Company that they are currently not in a position to proceed with the MOU, and as such both parties have agreed to terminate the MOU. Recent management changes within WMC have resulted in the Huogeqi Joint Venture being less of a priority as a new development for the Huogeqi mine operations. Pacific Ore is currently reviewing other funding alternatives available and will update the market when possible. In accordance with the pilot plant schedule the leaching phase is now complete and the Joint Venture partners of the Huogeqi project are decommissioning the Pilot Plant. The Chinese Feasibility Study is scheduled for final completion during the September quarter.
Announced that it has received a draft of the Base Case CFS Report from the China Nerin Engineering Company Limited. A review of the report underlined areas where work still needs to be done. A decision to commit to a full scale commercial Bioheap™ has been delayed until the feasibility study has been completed.
Advanced or Above