Colossal Resources - CLPZF - Colbalt in Zambia Message Board

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Gold/Mining/Energy : Colossal Resources - CLPZF - Colbalt in Zambia

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To: nammir chucri who wrote (82)	2/10/1997 3:46:00 PM
From: Tom McIlwain	of 501

Nammir: It's official now. Thanks for the advance notice. -------------------------------------------------------------------------------------------------------- Barplats Refineries (Pty) to be acquired Colossal Resources Corp CLP Shares issued 6,055,278 Feb 7 close $6.20 Mon 10 Feb 97 News Release Mr Dil Gujral reports Colossal has signed an agreement with Barplats Mines in Johannesburg, South Africa, to acquire all of the issued shares of Barplats Refineries (Pty) Limited for US$2.25 minion payable in cash and shares. The company has made an initial payment of US$500,000. Barplats Refineries (Pty) is to be operated under the name of SACOLCo Pty Limited as a wholly owned subsidiary of Colossal. Barplats Refineries (Pty) assets include a modern integrated base metals refinery (BMR) complete with boiler plant, water treatment plant, compressed air plant and all related services on a 9.7 hectare, well secured site at Brakpan near Johannesburg in the Republic of South Africa. The site also includes: extensive infrastructure and a precious metals refinery building and all support activities buildings; a modern laboratory and extensive offices; maintenance shops; storage facilities; and two buildings in which Colossal's hydrometallurgical processing pilot plant (announced in Stockwatch October 30 1996) has been installed and is currently being commissioned. Acquisition of these metals processing and refining plants gives Colossal the capability and capacity to process intermediate cobalt-containing products and residues to produce cobalt chemicals and cobalt metal. Capacity of the BMR, once commissioned by about June 1997 and fully on stream, is projected at around 60 tonnes of contained cobalt per month; with some modifications and additional vessels and controls the throughput rate can be increased to approximately 100 tonnes per month. Colossal's 60% owned associate company in Zambia, Qasim Mining Enterprises (QMEL) is producing a cobalt-rich intermediate granular product at its Kabwe mineral processing plant (KMPP) from cobalt containing slag purchased from ZCCM's Nkana slag dump. This water granulated cobalt-rich product is highly suitable for hydrometallurgical processing to produce commercial grade cobalt chemicals and cobalt cathode. QMEL will supply feed material to leading cobalt chemicals producers and to SACOLCo. It is also planned to locate the enlarged pilot plant to Kabwe in Zambia after the process is well established in RSA. Colossal engaged independent engineers to inspect the Barplats Refineries (Pty) plant and report on its operational condition with emphasis on the BMR. They reported that the BMR is highly suitable for processing the contemplated feed materials including the QMEL granulated products; and estimated that, with a source of feed and after commissioning, the operational replacement value of the assets is approximately US$15 million and the break-up sale value is about US$3 million. Colossal continues to search for interesting and potentially profitable minerals and metals ventures in Africa.

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