Significant Milestone Reached to Reactivate St. Lawrence Fluorspar Mine

The $100 million reactivation of St. Lawrence fluorspar mine is a step closer as the Provincial Government finalized the details of its $17 million repayable contribution to Canada Fluorspar Inc. (TSX-V: CFI). During the two-year construction phase, 370 full-time jobs are expected to be created while 175 full-time positions will be maintained at the facility once production begins.

The Honourable Keith Hutchings, Minister of Innovation, Business and Rural Development, was joined by the Honourable Darin King, Minister of Fisheries and Aquaculture and MHA for Grand Bank, and Richard Carl, Executive Chairman, and Lindsay Gorrill, President and CEO of Canada Fluorspar Inc., for the signing. The repayable contribution will assist with the construction of a deep-water port facility, enabling the company to efficiently export the acid-grade fluorspar.

“Conclusion of the final agreement reaffirms the Provincial Government’s commitment to the reactivation of the St. Lawrence fluorspar mine and to residents on the Burin Peninsula,” said Minister Hutchings. “This agreement outlines the terms and conditions of the agreement and the requirements of both parties. Our partnership with Canada Fluorspar will lead to considerable activity that will resonate throughout the region and the province. From construction to production and all stages in between, this project will create tremendous economic, business, and employment opportunities.”

In August 2011, the Honourable Kathy Dunderdale, Premier of Newfoundland and Labrador, announced the Provincial Government’s support of the project. The final agreement outlines the terms and conditions of the Provincial Government’s contribution including project expenditures, repayment terms, and general security issues on the contribution.

“This is an exciting, well-capitalized project involving international partners,” said Minister Hutchings. “As Canada Fluorspar progresses with bringing the mine into full commercial production it will bring new investment to the province, as well as lead to future mineral exploration. It means renewed optimism and renewed prosperity for St. Lawrence and the entire Burin Peninsula.”

Minister King views the mine’s reactivation as continuing the long history of mining in St. Lawrence.

“The signing of the formal agreement of the Provincial Government’s $17 million repayable contribution brings the mine’s reactivation another step closer to reality,” said Minister King. “It is great news for the Town of St. Lawrence, and indeed the entire region. I am very pleased that our government is assisting Canada Fluorspar with this redevelopment as it will bring considerable economic benefit to the Burin Peninsula in new jobs and spin-offs for local businesses looking to service the mine’s operations.”

The project is anticipated to produce approximately 126,000 tonnes of acid grade per year. Globally the annual consumption of fluorspar is approximately 5.6 million tonnes with an estimated value of US $1.6 billion. Over the forecasted 15-year life of the mine the net economic impact on the region is expected to exceed $380 million.

“This marks another important milestone in the march to reactivating the Fluorspar mine at St. Lawrence,” said Mr. Carl. “It is a tribute to the Government of Newfoundland and Labrador, the people of St Lawrence and the Burin Peninsula and our partners at Arkema.”

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Photo: The Honourable Keith Hutchings, Minister of Innovation, Business and Rural Development and Lindsay Gorrill, President and CEO of Canada Fluorspar Inc. sign the agreement as the Honourable Darin King, Minister of Fisheries and Aquaculture and MHA for Grand Bank, and company officials look on.

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2012 03 09                                9:15 a.m.