|Mon Jul 24, 2006|
ROCA Signs MAX Molybdenum Offtake Agreement
| ||Vancouver, British Columbia: Roca Mines Inc. (ROK: TSX-V) ("Roca" or the "Company") announces that it has signed an offtake agreement with U.K.-based Derek Raphael & Company Ltd. ("DRC") for molybdenum concentrates produced at the Company's MAX Molybdenum Mine at Trout Lake, British Columbia. DRC's North American representative is W. G. Cook Ltd.|
DRC was founded in 1974 and has established a track record as one of the largest traders of molybdenum concentrates and further downstream products worldwide, supplying the steel, engineering, non-ferrous metal and chemical industries. DRC purchases from some of the largest mining companies in the world, and sells to some of the largest steel producers in the world.
Under the terms of the offtake agreement, DRC has agreed to purchase 100% of the molybdenum concentrates produced at MAX during calendar years 2006 and 2007. Thereafter, the contract is renewable through 2017 by mutually agreed upon pricing. DRC will accept delivery from Roca's storage facility at the MAX site and will be responsible for all downstream roasting and/or processing charges, transportation, insurance and marketing costs after pick-up at the mine gate.
Roca plans to be the first new primary molybdenum producer in Canada, with production to commence in the fall of 2006. The fully-permitted PHASE I mine plan for MAX will focus on the deposit's high-grade zone containing 280,000 measured and indicated tonnes grading 1.95% MoS2 (refer to T.N. Macauley's 43-101 compliant technical report dated September 2004 available via SEDAR). Molybdenum currently trades in the US$24.00 -- 25.00/lb. range and is a key alloy in the manufacture of stainless and specialty steel, including pipelines and other energy-related steel infrastructure.
ROCA MINES INC.
Scott E. Broughton, P.Eng. -- President & CEO
For further information contact:
Email: [email protected]
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
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