VANCOUVER, British Columbia, June 20, 2019 (GLOBE NEWSWIRE) -- A.I.S. Resources Limited (TSX-V – AIS, OTCQB: AISSF) (the “Company” or “AIS”) announced today that the Company has commenced its manganese trading operations in Peru. The highlights include:
- A contract has been signed with the miner and a deposit paid to buy 2,000 tonnes of Manganese Ore with samples from the mined ore averaging 45% MnO.
- Terms of the purchase of the ore are 50% for 1,000 tonnes when trucking commences, and 50% when the assay is completed on each one tonne super bag received in our storage area.
- A logistics and shipping contract has been negotiated for an initial 2 containers per week (50 tonnes) for three weeks, then continuing with 40 containers per week (1,000 tonnes). In Peru, customs officials typically only examine the first three shipments meaning the Company will incur examination fees on the first six containers only.
- Container ships arrive every Tuesday and depart on Thursday, and carry up to 6,000 containers at a time, which are loaded in 48 hours.
- A storage site outside Lima has been rented and the containers will be loaded with quality and quantity certificates issued by international surveyors SGS.
- Buyer contracts in China will be finalized this week.
The Peruvian operation is being staffed by a General Manager, Mining and Quality Engineer, and Logistics Control Manager, with additional staff being added as required. During the week trenching and detailed geological mapping was completed on the El Zorro deposit. Due diligence work on other manganese deposits was also completed at the same time. AIS Resources is negotiating an offer to acquire an interest in the Sangal property. Surface mining on Sangal could commence immediately upon signing an agreement. Several other properties near main ports are being explored in the north and south of Peru.
Demand for Manganese in Steel and Lithium Battery Industries
- Manganese is a critical and irreplaceable element used in steel production, and accounts for 80-85% of demand at the moment;
- The steel industry is poised for continued growth, providing a steady source of demand for manganese. The metal is used in stainless steel, in military helmets, and in Hadfield steel.
- Significant additional upside will come from clean-energy applications;
- Electric vehicle batteries use manganese as a component of the cathode and electrolyte.
- A Lithium ion manganese oxide battery (LMO) is a lithium ion cell that uses manganese dioxide, MnO2, as the cathode material. Cathodes based on manganese-oxide components are earth-abundant, inexpensive, non-toxic, and provide better thermal stability thus demand continues to grow.
- Vertically-integrated companies will be the primary forward momentum drivers in the manganese industry.
- Lithium and cobalt have been on an absolute tear, riding the wave of Tesla and the broader electric revolution. Manganese metal also used widely as a battery component is poised for increased investor interest as demand is set to outpace supply.
- The production of aluminum alloys, accounts for the second-largest application of manganese. Aluminum alloy with manganese has increased corrosion resistance, thus, its widespread use for beverage cans.
- The production of unleaded gasoline requires manganese as methylcyclopentadienyl manganese tricarbonyl to reduce engine knocking and increase octane rating.
- The manufacture of chlorine and oxygen uses manganese, and drying black paints uses manganese dioxide (MnO2).
The Mn ore benchmark Brazil traded on 17 June 2018 at 48.50 Yuan per DMTU for manganese between 44-45%Mn, which equates at 43% to USD$7.02 CFR or USD $301.86 per tonne.
Photos accompanying this announcement are available at:
https://www.globenewswire.com/NewsRoom/AttachmentNg/bf1cbabb-74f2-425f-bbdf-52c066988e61
https://www.globenewswire.com/NewsRoom/AttachmentNg/36275cab-5a58-4447-a7d9-41bbb53c7879
AIS Resources President and CEO, Phillip Thomas stated, “I am delighted at the rapid progress we’ve made securing the first 2,000 tonnes with a well-organized, credible miner. We’ve also recruited a general manager, mine engineer and contracted a logistics company. The grade and size of the manganese is better than expected at this early stage and we look forward to exporting in the coming weeks. The trucking company is expected to start moving ore in one tonne tuff bags next week. This will provide a growing cashflow for AIS Resources in a growing sector that has considerable potential for upside and won’t experience the volatility of other metals such as cobalt. This strategy of trading and mining manganese underpins our future development and will reduce our reliance on capital raising. In the near future we will acquire mines and start our own mining operations to gain security of production”.
About A.I.S. Resources
A.I.S. Resources Ltd. is a TSX-V listed investment issuer, is managed by experienced, highly qualified professionals who have a long track record of success in lithium and manganese trading, exploration, production and capital markets. Through their extensive business and mining networks, they identify and develop projects worldwide that have strong potential for growth with the objective of providing significant returns for shareholders. The Company's current activities are focused on the mining and trading of manganese ores in Peru and exploration and development of lithium brine projects in northern Argentina.
On Behalf of the Board of Directors, A.I.S. Resources Limited
Phillip Thomas
President and CEO
Contact
Phillip Thomas - President and CEO
E: pthomas@aisresources.com
Website: www.aisresources.com
Martyn Element
Chairman
T: 604 687-6820
E: melement@aisresources.com
ADVISORY: This press release contains forward-looking statements. More particularly, this press release contains statements concerning the anticipated use of the proceeds of the Private Placement. Although the Corporation believes that the expectations reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them because the Corporation can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. The intended use of the proceeds of the Private Placement by the Corporation might change if the board of directors of the Corporation determines that it would be in the best interests of the Corporation to deploy the proceeds for some other purpose. The forward-looking statements contained in this press release are made as of the date hereof and the Corporation undertakes no obligations to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.