PRESS RELEASE:
biz.yahoo.com
Thursday June 17, 7:36 am Eastern Time
Company Press Release
Promising cost effectiveness of the
lithium metal production process
Raymor Resources Ltd.: Alberta Stock Exchange, ticker symbol ''Rar''
Ticker symbol: ''RAR''
QUEBEC CITY, June 17 /CNW-PRN/ - Raymor Resources is pleased to announce the
results from the assessment of the process used to produce lithium metal directly from
spodumene. Exceptional returns have been calculated by the mining consultant firm, Bumigeme
Inc. This firm is represented by Florent Baril, a metallurgical engineer who has cumulated 40
years of experience, 20 of which as metallurgical process consultant. Mr. Baril is also
supervising the pilot project being carried out at the CRM (Centre de recherche minerale du
Quebec) for the production of spodumene and byproducts (mica, quartz, and feldspar (phase 1
of the lithium project), which should be the subject of an other press release shortly. Mr. Baril
has been consultant for the Raymor Resources Ltd. lithium project since 1996.
Production Investments Gross Income Net Income Equity IRR(x)
---------- ----------- ------------ ---------- ------ ------
Lithium
-------
metal
-----
50 tons/year CAN$10.6 M CAN$ 6.92 M CAN$3.58 M 100% 31.64%
100 tons/year CAN$16.1 M CAN$13.84 M CAN$8.3 M 100% 50.73%
(x) Internal rate of return: calculated from equity (invested capital)
for the project funding over a ten-year period.
It is important to specify the an IRR of more than 20% is considered
as highly effective, and the project could be funded easily.
The process that will be used is different from currently used techniques in that it enables us to
produce lithium metal directly from spodumene, thus making it possible to eliminate the lithium
project phase 2 (lithium carbonate), and to reduce significantly production costs.
Up to now, details about the lithium metal used in the ACEP lithium cell designed for the
electric car market were provided to us by Hydro-Quebec.
Prefeasibility studies at the cost of $375 000 are already under way and will go on for a period
of four months. The purpose of these studies is to determine the capacity to produce lithium
metal (50 to 100 tons/year), and to adapt the process to the spodumene from our lithium
deposit of the La Motte property, which is entirely owned by Raymor Resources Ltd. (project
phase 1). The industrial subsidiary to be created by RAR will benefit from an exclusive
worldwide licence for the use of the high-tech metallurgical process for lithium metal
production. This process will be patented. Raymor Resources Ltd. will also have a right of first
refusal concerning the application of the process to all other metals and minerals. Presently, the
company is negociating a major industrial partnership to fund operations and patent costs. So
far, we are very proud of our project goal achievements. Besides, our objective is to limit to the
minimum share capital issues for the company's activity and project funding. Raymor Resources
Ltd. counts only 14.7 millions of shares issued on December 31, 1998.
Source Raymor Resources Ltd.
Regards,
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