Grabasa Complex in Spain
€4.275 million Grabasa acquisition includes
a fully operational processing and finishing facility,
250,000 sq. meters of
annual production capacity, 23 premium quality granite quarry licenses,
an operational fleet of mining and quarrying equipment.
Fairmont Resources Inc. (TSX: FMR) is a rapidly growing industrial mineral and dimensional stone company in the midst of acquiring a major dimension stone producer in Spain.
The assets of Granitos de Badajoz (Grabasa) in Spain includes 23 quarries, premium quality dimension stone mine licenses, and a 42,000 square meter granite finishing facility for cutting and polishing. The company has annual production capacity of over 250,000 square meters and has produced finished granite installed in buildings across Europe. These mine licenses and processing facility will make Fairmont one of the largest granite producers in Europe.
In business from 1975 to 2011, the extraction and transformation of granite by Grabasa has been the main driver of economic activity in the Extremadura region of Spain. Providing premium dimension stone for commercial, retail and industrial applications throughout Europe, Grabasa averaged over 6 million Euros in annual sales in the last 5 years of its operation. In the final year of operation Grabasa's average monthly operating costs were 217,600 Euros and itsaverage monthly sales were 371,475 Euros.
Critically, 18 of the 23 mining licenses, totaling 72% of the total area of Grabasa's licenses, are within eight kilometres of the processing plant with the remaining five within 20 kilometres. The ISO 9001:2008 certified processing facility, situated just outside of Burguillos del Cerro, is state of the art with over 2.2M Euros of new cutting and polishing equipment purchased by Grabasa as part of a production expansion between 2008 and 2010.
"This acquisition is a great step forward in realizing our vision of building Fairmont into a global industrial minerals company," says Fairmont President and CEO Michael Dehn.
"As we move towards closing the transaction on Grabasa as well as advancing our Quebec projects, we feel confident that Fairmont will grow to be the go-to industrial minerals company for dense aggregate, quartzite for ferro silicon and granite. We also continue to look for undervalued production and near term production opportunities."
Positive European and U.S. Market Outlook for Stone Industry
As first reported by Aggregate Business Europe in the article titled "Dynamic Start to 2016 for European Construction Equipment Sales", the Committee for European Construction Equipment states the "encouraging opening period of 2016 was driven by the robust recovery of the French market, the continuation of the recovery in Southern Europe and the stability of the Western European market as a whole" in construction equipment sales.
Fairmont sees this as continued positive signs in European construction recovery as well as for future demand for construction and renovation material including granite, according to Dehn.
The Winter 2015-2016 Gilbane Construction Economics Market Conditions in Construction Report for the US, reported that "2015 is a breakout year for nonresidential buildings construction spending, expected to finish at 17% growth. With expected growth of more than 13% in 2016, the three year period of 2014-2016 could reach historic growth." Fairmont officials see this as a positive sign for granite and marble demand in the US.
The US market for dimensional stone, which includes granite and marble, was more than $2.5 billion in 2014, with more than $2 billion dominated by imported material—a target market for Grabasa.
"This is an exciting opportunity for Fairmont to acquire one of the premier granite producing assets in Europe," says Dehn. "Fairmont management sees additional opportunities to expand sales into worldwide markets without the requirement of expensive upgrades or facility expansions."
Once all of the necessary financing for the €4.275 acquisition is in place, Fairmont plans to move rapidly into selling existing granite inventory and recommencing production for continuing sales.
Multiple Canadian Properties Focus on
High-Grade Ores Vital for Special Steel Production
Fairmont also is an established explorer/developer of high-grade titaniferous magnetite/vanadium and quartz/quartzite properties properties in Quebec. These properties cover numerous occurrences. Where these occurrences have been tested they have displayed exceptional uniformity with respect to grade.
Of Fairmont's three quartz/quartzite properties, its Buttercup property has a permit to quarry dense aggregate. Independent end-user testing of the Forestville quartz/quartzite properties confirms the suitability of the quartzite for Ferro Silicon production. The property is situated within 50 Km the Municipal Port of Forestville, Quebec, it has excellent logistics to the Great Lakes, Eastern Seaboard and Europe.
Ferrosilicon (FeSi)is used to remove oxygen from the steel and as alloying element to improve the final quality of the steel. Silicon increases namely strength and wear resistance, elasticity (spring steels), scale resistance (heat resistant steels), and lowers electrical conductivity and magnetostriction (electrical steels). Special FeSi like low Al, High Purity and low C ferrosilicon are used in the production of special steel qualities for transformers/motors, ball bearings and shock absorbers, tire cord steel and in stainless steel.
The company recently announced announced that it has consolidated a historic resource of 12.3 million short tons (11.2 million tonnes)of 99.20% SiO2, 0.41% Al2O3, and 0.36% Fe2O3 (from GM Report 39387, 1982, page 6)by staking. The two additional claims staked which contain the historic resource and are contiguous to the original Baie-Comeau Quartzite claims.
The properties have been optioned for the purpose of testing the chemical and physical properties of the quartzite as a potential raw material for use in products such as: high purity glass, fibre optics, ferrosilicon and silica metal.
Test work by Union Carbide Canada demonstrated that the quartzite from Baie-Comeau was acceptable for ferro-silicon production. In report GM 31179, a letter and results from Union Carbide Canada Limited are reported. Quoting from the letter "although the Al2O3 values tend to be on the high side, the quartz is of acceptable quality for ferro-silicon production".
In the recently filed Silicon Ridge Mineral Resource Estimate NI 43-101 Technical Report by Rogue Resources, the optimized pit economic parameters included Ferro Silicon Grade quartz sales pricing at CDN$100 per tonne.
Fairmont Acquires Rome Lithium Property
Fairmont recently signed an option agreement to acquire a 100% interest in the Rome Lithium property, located approximately 60 km north of Val d'Or, Quebec.
The property is contiguous to the north and south of RB Energy's Quebec Lithium Mine with a published measured and indicated resources (at a 0.60% Li2O cutoff) of 41,556,000 tonnes at 1.09% Li2O, and an inferred resource of (at a 0.60% Li20 cutoff) of 17,766,000 million tonnes at 1.10% Li2O. It is also contiguous to Jourdan Resources Vallee Lithium property that drilled more than 4000m of core in 2011 and intersected more 100 pegmatite and aplite dikes. Jourdan Resources intersected values of up to 1.187% Li2O over 5.50m.
Also significant for Fairmont and its new property is the recent acquisition of RB Energy Inc. by a Chinese company, according to Dehn. RB Energy, which once claimed its Quebec mine would produce "the highest-quality lithium carbonate in the world", halted operations in 2014 after failing to complete a much needed financing.
"Fairmont is very encouraged by the acquisition of the past producing Quebec Lithium Mine and Mill by Jilin Jien Nickel, as it provides third party validation of Fairmont's decision last month to option of the Rome Lithium Property, which borders the property acquired by Jilin Jien. Rome added shareholder value at the time of its option and we believe this acquisition of the bordering property will add further near and long term value".
Michael Dehn – President, CEO & Director. Michael has over 21 years of experience in the mining industry. He has held the position of Senior Geologist, VP Corporate Development. President, CEO, and/or Director of publicly traded and private junior mining companies, with listings on the TSX, TSX-V, CSE, Frankfurt, Berlin, OTCBB and Pink Sheets. Michael has worked in diamond, base metals, precious metals, industrial minerals, oil and natural gas, as well as sand, gravel and peat deposits, primarily in the Americas on private, public company and government projects. His combination of technical and business skills have lead to the development of new economical hydrometallurgical processes on historical geological deposits. Michael is currently President, CEO & Director of both Jourdan Resources Inc. (TSX-V: JOR) and Fairmont Resources Inc. (TSX-V: FMR). JOR is a Quebec-based junior phosphate exploration company, and FMR is a junior gold and Fe- Ti-V company. He is also a current director for Metalore Resources Limited (TSX-V: MET) and West Red Lake Gold Inc. (CNSX: RGL).
Greg Ball, CGA – CFO & Director. Over 23 years of experience in the accounting for an array of companies including Black Top Cabs & Pacific Western Brewing Co. CGA designation and Bachelor of Science in Mathematics from University of Alberta.
Michael Thompson P.Geo. – Director. Received his H.BSc. in Geology from the University of Toronto in 1997. Over 10 years of experience in both gold and base metal exploration, most notably Teck Resources Ltd., Placer Dome CLA Inc. and Goldcorp Inc. Founder, part owner and President of Fladgate Exploration Consulting Corporation of Thunder Bay, ON, a full service mineral exploration consulting firm with over 60 employees and a roster of publicly traded clients. Also serves as a Director and Vice President of Exploration for Red Metal Resources Ltd., a mineral exploration company quoted on the OTC Bulletin Board.
Ernest Cleave – Director. Mr. Cleave is currently the Chief Financial Officer of Largo Resources Ltd. and a Director of Firesteel Resources Inc. Mr. Cleave is a business professional with over 20 years' experience in finance strategy, M&A, compliance, financial reporting, internal control and strategic planning. He served as Director, Chief Financial Officer, Corporate Controller and in senior finance positions for large, multi-national companies in the mining, manufacturing and retail sectors, including Bata Limited, Falconbridge Limited, and Goldcorp Inc. He started his career with PricewaterhouseCoopers in 1993 and has also served as Chief Financial Officer for numerous junior mining companies, including Alturas Minerals Corp., Cline Mining Corporation and Grandview Gold Inc.
Neil Pettigrew M.Sc. P.Geo. – Director. Received H.BSc. in Geology degree from the University of New Brunswick in 1999 and his M.Sc. degree in Earth Sciences from the University of Ottawa in 2004. Over 10 years of experience with several junior and major companies in gold and Cu-Ni-PGE exploration, most notably Avalon Ventures Ltd., Temex Resources Corp., Rainy River Resources Ltd., Placer Dome CLA Inc. and Goldcorp Inc. Founder, part owner and Vice President of Fladgate Exploration Consulting Corporation of Thunder Bay, ON, a full service mineral exploration consulting firm with a roster of publicly traded clients.
Fairmont’s Buttercup property is 42 km in a straight line from the Port of Saguenay. By road, it is less than 70 km from the Port.
Located 54 nautical miles up the Saguenay River, Grand-Anse terminal specializes in the handling of forest products, bulk and general cargo.
With 13.8 meters of water depth, the port can host vessels with over 100,000 tonnes of deadweight tonnage, It is the gateway for all major industries in the region.