Highwood Resources and Rare Metal focusing on beryllium
Highwood Resources Ltd HWD
Shares issued 21,811,459 Mar 24 close $0.50
Mon 27 Mar 2000 News Release
Mr. Garry Lynkowski reports
Highwood has established a wholly owned subsidiary company which will
operate as Rare Metal Alloys Inc. The new company will focus its activities
on the development of a specialty materials business based upon the
commercial development of the Thor Lake property in the North West
Territories (NWT).
The Beryllium Metal Alloy Business Driven by Growing High-Tech Demand
Beryllium and some of its compounds and alloys are industrial materials
with unique qualities which make them able to withstand extreme heat,
remain stable over a wide range of temperatures or serve as an excellent
thermal conductor. Beryllium's chemical and mechanical properties make it
essential in many telecommunications, medical and manufacturing
applications. Recent developments in computer and broadband communications,
fuelled by the growth in the Internet, are expected to make market demand
for beryllium metal, alloys, and compounds grow and diversify
significantly.
In announcing the creation of Rare Metal Alloys, Highwood Resources' chief
executive officer Jim Roxburgh stated, "RMA is being established to advance
the commercial development of the company's Thor Lake, NWT beryllium
deposit. Upon completion, this will position RMA as an alternate source of
beryllium products."
RMA has entered into a strategic alliance and commercialization agreement
with the metallurgical technologies division of Dynatec Corporation, a
world leader in hydrometallurgical process development and related
professional services to mineral exploration, mining and refining
companies. This alliance immediately establishes solid operations
management and global technical expertise for RMA as it works to bring this
beryllium project to commercial operation.
Mr. Roxburgh added, "The challenge to RMA is to develop the business to
world class standards, taking into account market structure, community
interests, health and environmental care, and the state of mining and
processing technology today."
Thor Lake Commercial Development
Highwood Resources is embarking, through RMA, on a three phase program to
establish a beryllium-based business unit.
The business office of RMA will be located at Dynatec Corporation,
metallurgical technologies division, Fort Saskatchewan, Alta.
PHASE 1: Prefeasability
This is currently under way with a completion date of the 3rd quarter of
2000. This involves expenditures of $4-million and is being financed by
Highwood's operating cash flow.
Phase 2: Feasability; Permitting and Financing
Phase 2 costs are currently estimated to be $3.5-million. The schedule for
this program will be more accurately defined as part of phase 1.
Phase 3: RMA Commercial Development
Currently it is estimated that Phase 3 will take two to four years to
complete following the securing of financing.
WARNING: The company relies on litigation protection for "forward-looking"
statements.
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