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– Secures Land for Expansion –
TORONTO, ONTARIO–(Marketwire – Feb. 29, 2012) –
THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT AUTHORIZED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.
Silvermet Inc. (“Silvermet” or the “Company”) (TSX VENTURE:SYI) is pleased to provide an operational update with a number of positive developments:
Highlights
-- Gross sales revenue in 2011 increased by 13% to $17.9 million (at 100%)
from $15.9 million in 2010.
-- Sales volume in 2011 increased by 15% to 14,421 DMT (Dry Metric Tonnes
zinc concentrate) from 12,581 DMT in 2010.
-- Production in 2011 increased by 33% to 15,328 DMT compared to 2010
production of 11,548 DMT.
Silvermet also announced that its Turkish joint venture has entered into a purchase agreement for a 50,000 square meter plant site in the Adana organized industrial zone near Iskenderun. The Company intends to build a modern plant to process 110,000 tonnes of EAFD (Electric Arc Furnace Dust) per year, which will triple Silvermet’s production capacity in Turkey. The joint venture is also very close to acquiring an additional property on which a second 110,000 tonne plant will be built. After the planned addition of the two new plants in Turkey, annual EAFD processing capacity will increase to 280,000 tonnes. EAFD processed in Turkey contains an average of 25% zinc. The Waelz oxide (zinc concentrate) output of the Turkish plants will therefore increase to approximately 90,000 dry metric tonnes per annum, containing approximately 135 million pounds of zinc.
“We are very pleased with our operating results and overall performance of the existing kiln. We will continue to optimize production to achieve higher throughput and recovery levels during 2012.” said Stephen G. Roman, Chairman, President and CEO of Silvermet. “The Adana land purchase is a significant milestone for our joint venture in Turkey. It will enable us to build a state of the art facility, significantly increase production and reduce operating costs. We will now focus on obtaining the necessary permits to begin construction, with the first new kiln scheduled to be in operation by 2014.”
About Silvermet:
Silvermet’s principal business activity is the recycling of electric arc furnace dust (“EAFD”) obtained from steel companies through a Waelz kiln to recover zinc concentrates that are then sold to zinc smelters throughout the world. The Company owns 49% of a joint venture, Befesa Silvermet Turkey S.L. (“BST”), which operates a Waelz kiln facility located in Iskenderun, Turkey.
Caution concerning forward-looking statements: The information in this release may contain forward-looking information under applicable securities laws. This forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those implied by the forward-looking information. Factors that may cause actual results to vary include, but are not limited to, inaccurate assumptions concerning the exploration for and development of mineral deposits, political instability, currency fluctuations, unanticipated operational or technical difficulties, changes in laws or regulations, the risks of obtaining necessary licenses and permits, changes in general economic conditions or conditions in the financial markets and the inability to raised additional financing. Readers are cautioned not to place undue reliance on this forward-looking information. The Company does not assume the obligation to revise or update this forward-looking information after the date of this release or to revise such information to reflect the occurrence of future unanticipated events except as may be required under applicable securities laws. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
“Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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