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HE-5 Resources, Corp. Achieves a Preliminary Agreement for Mining Concession With the Republic of Cote d'Ivoire
Properties Situated in Mountain Regions That Contain Estimated 3 Billion Metric Tons of Iron Ore Resources
NEW YORK, NY, Jan 31, 2008 (MARKET WIRE via COMTEX) -- HE-5 Resources, Corp. (PINKSHEETS: HRRN) today announced that it has achieved a Preliminary Agreement for an iron ore mining concession with the Republic of Cote d'Ivoire. The concession constitutes several massive iron ore Properties situated in the mountain regions in Cote d'Ivoire. According to published reports of 2000 by MBendi Information Services (Pty.) Ltd, the iron ore resources in the mountain regions amounted to an estimated 4 billion metric tons at a grade of 40% iron.
As per the Preliminary Agreement, HE-5 will generate substantial revenues from the export of iron ore extracted from the Properties for a period of at least 15 years. HE-5 will be authorized by the Government to exclusively perform the following tasks: mine exploration, development and production; in-country infrastructure; international financing; and iron ore sales to international steelmakers (hereinafter referred to as the "Project").
The strategic international economic goal of this iron ore Project is to create a long-term, multi-billion dollar funding source to improve the living standard; economic growth; and political stability of Cote d'Ivoire and its people.
Background of Preliminary Agreement
HE-5 has retained the services of Mr. Fernand Gilbert as our international representative to negotiate the iron ore mining concession with SODEMI (Societe d'Etat pour le Developpement Minier de la Cote d'Ivoire). The current Governor of the District of Yamoussoukro -- the official capital city of Cote d'Ivoire, Mr. N'Dri Koffi Apollinaire, favors and supports HE-5 as the concessionaire for this Project. The iron ore Properties are situated in the District of Yamoussoukro. The authority to award the iron ore mining concession is under the constitutional authority of Governor Apollinaire.
The final documentation for the iron ore concession called a binding Agreement is currently being negotiated. The key participants in the negotiations are Mr. Gilbert representing HE-5; the Project Committee of the Director General (PCDG), who reports directly to the President of Cote d'Ivoire; and the Ministry of Mines and Energy. The PCDG includes the National Bureau of Technical Studies and Development (BNETD); the Port of San Pedro; and SODEMI.
HE-5 CEO Denyse Raynault stated: "Obtaining this multi-billion dollar iron ore concession will represent the most significant accomplishment in the history of HE-5. The profits earned from this concession will allow HE-5 to fund future acquisitions and the exploration, development and production of its gold mining properties. We have set a goal to accomplish complete international legalization of the concession Agreement by April 15, at which time the final signed documents will be posted on the corporate website."
HE-5's Iron Ore Mining Strategy
This multi-billion dollar Project will signal HE-5's entry into the global iron ore industry with the objective to position it as an important player in this multi-billion dollar market. HE-5's decision to aggressively establish a significant presence in this industry via the pursuit of this Project was based primarily on the significant value that it would create for the Company's shareholders. In addition, its decision was supported by HE-5's capabilities and familiarity with large mining projects, and the current robust global iron ore market. HE-5 will leverage its experience and extensive network in the mining industry, gained mainly during its ongoing Overman Property gold mining project in Nevada, to this major iron ore mining Project in Cote d'Ivoire.
Global Iron Ore Market
The iron ore in steel is mined and exported in far greater quantities than nickel and copper. Global iron ore production reached 1.7 billion tons in 2006, up from one billion tons in 2000. World consumption of iron ore grows 10% annually. The competing consumers to acquire iron ore sources are: China, India Japan, Korea, and the United States. Current market conditions are extremely favorable as evidenced by a recent report stating that the world's three largest iron ore miners, CVRD; BHP Billiton; and Rio Tinto, are committed to keeping pace with China's increasing iron ore demand. Despite China's campaign to eliminate outdated capacity, the country's steelmaking capacity is set to grow in 2008, further tightening global iron ore supplies.
Rio Tinto Ltd. recently announced that it plans to take advantage of the high spot iron ore price and sell up to 15 million tones of ore into the spot market in 2008. The difference between spot prices and contract prices are significant, with benchmark contracts fetching about $US85 per tonne for iron compared with spot prices of about $US190 per tonne.
Bottomfeeder
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Where is this country? Or where is it near?
Mr.PennyNJ
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lol,,,,, gotta love these pinkies.
Malloy
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Cote D'Ivoire is in Africa on the Atlantic side.
Malloy
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It's close to Sierra Leone...
Bottomfeeder
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Thanks.Heard bad news coming from that side of the world most to do with turmoil about the revolution...
Malloy
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Africa is always a hot place. Here's what I got from wikipedia.
"A peace deal between the government and the rebels, or New Forces, was signed on March 4, 2007, and subsequently Guillaume Soro, leader of the New Forces, became prime minister"
I guess it's time to do business there...company will get cheap claims.
quote:Originally posted by Bottomfeeder: Thanks.Heard bad news coming from that side of the world most to do with turmoil about the revolution...
Malloy
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Very low O/S for a mining penny stock...
Outstanding Shares 22,867,625 as of Aug 8, 2007
Authorized Shares 100,000,000 as of Feb 28, 2007
kim
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SCAM ALERT!!!!
plenty of pumping lies
Nile
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just from a charts perspective this doesn't look good... wait to see if it bounces off .022!
If I were you, I would stay far away from this one!
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