News Release
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VANCOUVER, British Columbia - Playfair Mining Ltd. (PLY-TSX.V) is pleased to announce it has signed a Letter of Intent with Great Atlantic Resources Corp. (GR -- TSX.V) to allow Great Atlantic to acquire up to a 75% interest in the Grey River Tungsten property. The property is located adjacent to the fishing village of Grey River on the south coast of Newfoundland.
Mr. Steven Chan states:
"We are very pleased to have entered into a letter of intent with Great Atlantic Resources to further develop our Grey River tungsten deposit. This agreement will give Playfair Mining the ability to continue to move Grey River toward production while Playfair continues to focus its attention on our other significant tungsten assets across Canada."
Highlights of the Grey River Tungsten Deposit:
High grade tungsten deposit
Mineralization is mainly wolframite
Positive metallurgical test work
Over 300 veins and veinlets mapped from surface
Resource calculation compiled mainly from 1 vein structure
Deposit situated on a deep sea, ice free Atlantic port
Preliminary Economic Assessment recently completed
The Deal
Under the terms of the letter of intent, Great Atlantic, as operator, can acquire a 75% undivided interest by making cash option payments of $500,000 over the next six months upon signing a definitive option agreement. Great Atlantic will further issue 19.9% of its issued and outstanding shares to Playfair over a four year period. Playfair shall fund the first $500,000 in exploration costs within year one. Either Playfair or Great Atlantic has the right to accelerate the terms of the agreement under certain conditions.
The transaction is subject to a number of conditions and approvals, including, but not limited to, satisfactory due diligence, settlement of a definitive agreement, required corporate approvals and TSX-V approval. There can be no assurance that the transaction will be completed as proposed or at all.
About Tungsten
Tungsten is an extremely hard, heavy, steel-grey to white metal that is remarkable for its robust physical properties and vast uses and cannot be substituted in many industrial applications. Tungsten has the highest melting point of all metallic elements and is a strategic metal and emerging economies such as India and China are consuming increasing amounts of tungsten. The current price of tungsten is approximately US $19.62 per pound. Until 2005, China was the world's largest exporter of tungsten concentrate but rapid industrialization within China, structural economic changes, and changes in economic policies towards industry have resulted in the restriction of tungsten exports from China. China is now the world's largest consumer of tungsten. Escalating Chinese consumption, in conjunction with the ongoing demand in the world's principal economies along with the supply issues noted above, has resulted in increases in the price of tungsten by 70% over the last two years.
We seek safe harbor.
Visit our website at www.playfairmining.com for more information on Playfair's Tungsten properties.
ON BEHALF OF THE BOARD
"D. N. Briggs"
D. Neil Briggs, Director
www.playfairmining.com/s/NewsReleases.asp?ReportID=548921
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