Dragon Mining terminates the agreement with Endomines
Endomines has been informed that Dragon terminates the existing agreement on processing flotation concentrate from Pampalo at the Dragon Mining Svartliden leaching plant. According to Dragon Mining the Svartliden Operations has experienced elevated levels of copper in the discharge water. The copper levels are low but still at a level that the water must be cleaned in order to apply with the Svartliden Environmental Permit. The cost of cleaning the water is deemed to be significant by Dragon Mining management.
Endomines will immediately commence discussions with other customers for the flotation concentrate.
“The elevated levels of copper in our concentrate may partly be related to mining from the new mineralizations. The decision made by Dragon Mining is ill-timed as we have lately been processing ore from relatively high-grade areas in our processing plant. We presume, however, that Dragon Mining will comply with all termination clauses in our Agreement, to allow us adequate time to reach an agreement with other customers” comments Markus Ekberg, CEO of Endomines.
For further information please contact:
Markus Ekberg, CEO of Endomines AB, phone +358-40-706 48 50 or visit www.endomines.com
Endomines AB discloses the information provided herein pursuant to the Swedish Securities Markets Act and/or the Swedish Financial Instruments Trading Act. The information was submitted for publication at 08:45 CET on May 26, 2016.
Endomines conducts exploration and mining business along the 40 kilometer long Karelian Gold Line. Through various regulatory approvals, Endomines controls the exploration rights to this entire area.
The Company’s first mine, Pampalo, started in February 2011. During 2014, Endomines initiated the production of ore from the mine in Rämepuro. The ore from satellite mines will be processed in the centrally located mill at Pampalo.
The Company’s operations are based on sustainable principles and on minimizing the impact on the environment.
Endomines applies SveMin's & FinnMin's respective rules for reporting for public mining & exploration companies. The Company has chosen to report mineral resources and ore reserves according to the JORC-code, which is the internationally accepted Australasian code for reporting ore reserves and mineral resources.
Endomines vision is to participate in the future structural transformation and consolidation of the Nordic mining industry. The Company may therefore be involved in acquisitions of interesting deposits or companies, should such opportunities arise.
The shares of Endomines AB are quoted on Nasdaq Stockholm under ticker ENDO and on Nasdaq Helsinki under ticker ENDOM. The Liquidity Provider in both Stockholm and Helsinki is Erik Penser Bankaktiebolag.