TORONTO, ONTARIO--(Marketwire - July 27, 2012) - Ivernia Inc. ("Ivernia" or the "Company") (TSX:IVW) today announced that it has received the approved operating conditions ("Operating Conditions") for its wholly owned Magellan Mine from the Western Australian Government.
The Minister for Environment of Western Australia, today, formally issued the Operating Conditions after conducting an extensive review process in response to the draft recommended conditions he received from the Environmental Protection Authority of Western Australia ("EPA") in October 2011. The Operating Conditions preserve and, in some cases, enhance the strict auditing, monitoring and reporting requirements previously imposed on the Company.
Ivernia welcomes the Minister's release of the Operating Conditions and will now undertake its own detailed review and assessment in order to fully understand their impact on its mining, processing, transportation and export activities. While this review has only just commenced in the past few hours following receipt of the Operating Conditions, the Company notes that pursuant to the Operating Conditions, the Company can ship lead carbonate concentrate through the Port of Fremantle for five (5) years from the date of issuance of the Operating Conditions. The Company is strongly committed throughout this five year period to demonstrating that shipping the Company's product is both safe and appropriate. Further, the Operating Conditions require that certain actions be undertaken by the Company prior to the recommencement of transportation of any lead carbonate concentrate from the Magellan Mine including, but not limited to, completing an: environmental management program; a third party evaluation of the Company's sampling and analysis methodologies; and an environmental risk assessment. A copy of the Operating Conditions will be posted on the Ivernia website at www.ivernia.com and the Magellan Metals website at www.magellanmetals.com.au.
Wayne Richardson, Chairman of Magellan Metals commented, "We must now carefully examine the Operating Conditions issued by the Minister and satisfy ourselves that we clearly understand the new obligations they contain, and that we can adequately meet them before we confirm the timing of any restart. While a number of factors still need to be considered before making a decision to restart, we do not anticipate re-commencing any shipments prior to the second quarter of 2013."
"It is important to emphasize again that during the past 18 months multiple internal and external reviews into all aspects of our operations have made it clear that our health and safety practices are of the highest order and that there has been no risk to the general public or our employees from the production and transport of our concentrate since the commencement of shipments in bags and sealed containers in 2009."
Ivernia has stated previously the need to undertake a number of activities at the Magellan Mine, mobilize contractors and recruit and train a significant workforce before a restart of operations can occur. Further, Ivernia continues to expect that it will require additional financing to restart the Magellan Mine. The quantum of this funding requirement cannot be estimated at this time and will be contingent on the review of the Operating Conditions, finalization of a restart plan, the expected net proceeds to be received from the sale of stockpiles, as well as general market conditions, including but not limited to lead prices, foreign exchange rates and capital markets.
Ivernia will provide further updates on the restart of its mining, processing, transportation and export operations after it has completed its review of the Operating Conditions and advanced the restart planning process.
About Ivernia
Ivernia is an international base metal mining company and the owner of the Magellan Mine, located in Western Australia.
Ivernia trades under the symbol "IVW" on the Toronto Stock Exchange. Additional information on Ivernia is available on the Company's website at www.ivernia.com and at SEDAR at www.sedar.com.
Forward-Looking Statements
Certain statements contained in this press release constitute forward-looking information within the meaning of securities laws. All statements included herein (other than statements of historical facts) which address activities, events or developments that management anticipates will or may occur in the future are forward-looking statements, including statements as to the following: the duration of the suspension of the Company's transportation of lead carbonate from the Magellan Mine, the duration of the period of care and maintenance commenced in April 2011, future targets and estimates for production, capital expenditures, operating costs, cash costs, mineral resources, mineral reserves, life of mine, recovery rates, grades and prices, business strategies and measures to implement such strategies, competitive strengths, estimated goals and plans for Ivernia's future business operations, lead market outlook and other such matters. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "contemplate", "target", "believe", "plan", "estimate", "expect", and "intend" and statements that an event or result "may", "will", "can", "should", "could" or "might" occur or be achieved and other similar expressions.
These statements are based upon certain reasonable factors, assumptions and analyses made by management in light of its experience and perception of historical trends, current conditions and expected future developments, as well as other factors management believes are appropriate in the circumstances. However, whether actual results and developments will conform with management's expectations is subject to a number of risks and uncertainties, including factors underlying management's assumptions, such as, the duration of the suspension of the Company's transportation of lead carbonate from the Magellan Mine, the duration of the period of care and maintenance commenced in April 2011, the timing and need for additional financing, risks relating to the operations being placed on care and maintenance, matters relating the restart of mining and milling operations, matters relating to ramping up mining and milling throughput and operations, regulatory compliance and approvals, metal price volatility, lead carbonate concentrate treatment charges, exchange rates, regulatory proceedings and litigation, the fact that the Company has a single mineral property, resources and reserves, health and safety, environmental factors, mining risks, metallurgy, labour and employment regulations, government regulations, insurance, dependence on key personnel, constraints on cash flow, the nature of mineral exploration and development, matters relating generally to the transportation of lead carbonate, presence of a majority shareholder, matters related to public opinion, matters related to the Esperance settlement and shipments through the Port of Fremantle, and common share price volatility and the dilution of the Company's common shares. Additional factors and considerations are discussed in the Company's 2011 AIF and may be included in other documents filed from time to time by Ivernia with Canadian securities regulatory authorities. While Ivernia considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. These factors may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements, and there can be no assurance that the actual results or developments anticipated by management will be realized or, even if substantially realized, that they will have the expected results on the Company. Undue importance should not be placed on forward-looking information nor should reliance be placed upon this information as of any other date. Except as required by law, while it may elect to, Ivernia is under no obligation and does not undertake to update this information at any particular time.
Contact Information
Ivernia Inc.
Brent Omland
Vice President, Finance & Chief Financial Officer
(416) 867-9298
investor@ivernia.ca
www.ivernia.com