Eastern Mediterranean Res. Pblc LD
18 September 2006
18 September 2006
AIM: EMED
EMED FORMS NEW SUBSIDIARY- Keffi Minerals Plc -
Highlights
Keffi Minerals Plc ("Keffi" or "the Company") has been formed by EMED and
Starvest Plc ("Starvest") to build on EMED's assets in Turkey and Bulgaria
Keffi will have a strong and experienced Board and Management team
Intention to list Keffi on AIM.
Eastern Mediterranean Resources Public Limited ("EMED") announces that it has
formed Keffi as a UK-registered holding company for the purposes of holding its
interests in Turkey and Bulgaria. EMED has 71% and intends to retain a
significant stake in the Company. Starvest, a natural resources investment fund
holds 24% and Keffi Directors and management hold 5%.
EMED will bring its technical support and mining expertise into Keffi. Starvest
has contributed seed capital to Keffi and has confirmed its intention to support
the Company's IPO.
In Turkey, Keffi's interests will include clusters of tenements in well-known
mineralised districts:
the Artvin District with similarities to the Madneuli District in nearby
Georgia which has hosted major base and precious metal mines; and
the Gumushane District which has been identified as prospective for
precious metals based on field prospecting including low-detection
geochemistry.
In Bulgaria, Keffi's interests will include the Lehovo tenement where extensive
gold mineralization warrants follow up.
Subject to future stockmarket conditions, Keffi will seek admission to AIM
within the next 12 months. It is the intention that WH Ireland be appointed as
NOMAD and Broker.
Mr Jeffrey Rayner, EMED's Head of Exploration in Eastern Europe will be
appointed as Keffi's Managing Director. The Board will also include Harry
Anagnostaras-Adams, EMED's Managing Director, as Keffi's Non-Executive Chairman,
and Professor Ian Plimer, mining company director and a geologist of
international repute who participated in the discovery of the 20 million ounce
Lihir Gold Mine which is within a mineralised belt analogous to parts of Turkey.
Commenting on the formation of Keffi, Mr Anagnostaras-Adams, Managing Director
of EMED said: "EMED has exploration licences in Turkey and Bulgaria which at
this stage are non-core assets for the Company. The formation of Keffi will
combine our existing skill base with the financial backing of Starvest and allow
us to drill these assets much earlier than anticipated, with no interruption to
EMED's current activity. We are confident of the potential within these assets
and believe that Keffi will be able to enhance their value".
-Ends-
Enquiries
Eastern Mediterranean Resources Nabarro Wells Parkgreen Communications
Harry Anagnostaras-Adams Richard Swindells Justine Howarth / Ana Ribeiro
+357 9945 7843 +44 20 7710 7400 +44 20 7493 3713
www.emed-resources.com
www.emed.tv
Notes to editors
About Keffi Minerals Plc
Keffi emerged from the efforts over the past two years of EMED's
project-generative team and its formation as a stand-alone entity was
triggered when sufficient critical mass had been established in assets and
opportunities.
Keffi will focus primarily on Turkey which has emerged as a minerals
industry location of global significance. Many mining and exploration
companies are now investing in Turkey.
To become a leading discoverer of mineral deposits in Turkey and Bulgaria,
Keffi has been designed with certain competitive advantages:
It will be led by a Managing Director who moved from a major mining
house to Eastern Europe 7 years ago because he recognized the potential
for discovery. Jeffrey Rayner led the exploration team that brought Gold
Mines of Sardinia into production and has, more recently, made an
immediate contribution to EMED
It will have a well-qualified and incentivised exploration team with a
record of discovery
Keffi will have the support of EMED systems and teams as appropriate.
It is notable that EMED has the largest exploration team in Georgia and
that team identified North East Turkey's Artvin District for Keffi's
tenement acquisitions
A proprietary database recently acquired by EMED (which will be
transferred to Keffi). This data summarises the field work in over 100
Turkish locations conducted over some years by a highly experienced
exploration team including Professor Ian Plimer, Mr Gavin Thomas and Mr
John Nethery, exploration geologists of international repute with a
track-record between them of international discovery, notably at the
world class +20 million ounce Lihir Gold Mine now in operation in Papua
New Guinea. The mineralised belts of Turkey have analogies with those of
the Pacific Rim.
Keffi has been "in the making" for some time. It's focus, cost-effective
structure and relationship with EMED will give it certain strengths.
About Eastern Mediterranean Resources Public Limited
EMED listed on AIM in May 2005 following an initial public offering of its
shares. The Company is headquartered in Cyprus and has a strong commitment to
the region.
The Group's region of interest is the Mesozoic to Tertiary age tectonic belt
that winds over 3,000km from Eastern Europe to Iran. The strategy is to rapidly
evaluate exploration opportunities in several jurisdictions throughout this
quality mineral belt with a high rate of project turnover.
EMED has now established a strong position in the following three areas within
its area of interest:
Cyprus/Middle East proceeding in accordance with the published
schedule and EMED has commenced a Preliminary Feasibility Study for the
development of the Klirou Copper-Zinc Project. This production proposal could
potentially start up in 2008. Resources identified to date contain in-situ metal
content of +£100 million. Nearby additional target zones are also being tested.
Eastern Europe exploration areas are centred on a cluster of volcanic
centres in Slovakia. Low-detection geochemical methods are being applied to
these areas for the first time together with open pit bulk mining concepts. The
targeted mineralisation styles are high-grade epithermal gold, or bulk-minable
epithermal gold and porphyry copper-gold. A drilling program is in progress.
Caucasus exploration areas and options over additional prospects, form
a cluster of gold prospects centred in Georgia. EMED's main prospects are within
the Upper Racha Licence with reserves and resources (Russian classification) of
2.4 million ounces of gold. A field sampling and verification program is in
progress.
About Starvest Plc
Starvest plc under the leadership of Bruce Rowan, Chairman and CEO, invests in
small businesses. Most are pre IPO opportunities with a commitment to support
the company at the public offering and sometimes beyond. Since January 2002,
Starvest has supported twenty-four companies of which eighteen are in the
natural resources sector exploring for a variety of minerals in all parts of the
world. Starvest is a committed medium term investor. Starvest ordinary shares
are AIM-quoted ( AIM:SVE).
This information is provided by RNS
The company news service from the London Stock Exchange