TurkPower Announces Acquisition of Coal Field with Recoverable Resource Estimate of 100M Metric Tons of Coking Coal
NEW YORK, May 15, 2012 /PRNewswire/ — TurkPower Corporation (OTC.BB:TRKP) (the “Company”), which previously announced that it is changing its name to SibMet Coal Corporation, announced today that its wholly owned subsidiary, Sibcoal Mining Corporation, has acquired 100% share of a 49-year lease to develop, operate and mine the Zavyalov Square Part 1 (“Zavyalov”) of the Toguchina Coal Field.
Zavyalov is an open pit mine with over 100M metric tons of forecasted extractable quantity of high-grade hard coking coal. Coal at Zavyalov is typically humic with relative low moisture (max 6%), volatile matters (avg. 20%) and GCV of 7990 – 8680 Kcal/kg. The grades of coal are K, KO, KC, GZh, which are fit for processing into metallurgical coking coal and which trades at a high premium to “regular” coal such as thermal coal.
Zavyalov is 5km from the West Siberian Rail Road and in close proximity of the Kemerovo Region of Russia, also known as the Kuzbass Region, which accounts for 80% of Russia’s total coal production. Coal exports from the Kuzbass Region are the 5th largest in the world. The mining area is fully explored and well surveyed for coal deposits.
TurkPower’s Chairman and CEO Ryan E. Hart commented: “This is a great day and milestone for the Company and its investors. With the purchase of Zavyalov, TurkPower takes its first step towards becoming a producing and profitable mining company. The Company’s mining consultants expect the Zavyalov mine to produce up to 1M metric tons of high-grade coking coal in 2013, and between 2 – 2.5M metric tons in 2014 and after.”
About TurkPower Corporation
TurkPower Corporation (OTCBB: TRKP), which is changing it’s name to SibMet Coal Corporation, in order to reflect its main business, is an American junior mining company that has established two wholly owned subsidiaries – Sibcoal Commodities Trading Corp. and Sibcoal Mining Corp. Both subsidiaries are BVI companies. Sibcoal Commodities Trading shall focus on sales and marketing of metallurgical coking coal and Sibcoal Mining was established to acquire and develop mining interest, specifically and initially Zavyalov Square of the Toguchina Coal Field. TurkPower also owns a minority interest in an operational iron ore mine in Turkey. TurkPower is currently in the process of evaluating its options and defining its strategy regarding its asset in Turkey, which will include protecting its shareholders interest in said mine.
Certain statements in this news release are forward-looking statements. Words such as “expects”, “intends”, “plans”, “proposes”, “may”, “could”, “should”, “anticipates”, “estimates”, “likely”, “possible”, “potential”, “believes” and words of similar import may identify forward-looking statements. Such statements are based on management’s and the Company’s independent mining consultant’s current expectations, estimates and projections about the companies’ businesses, are not guarantees of future performance and involve certain risks and uncertainties that are difficult to predict. Actual results could vary materially from the description contained herein due to many factors beyond the control of either of the companies, including, but not limited to, the successful completion of the merger; the combined company’s ability to raise the required additional capital to develop its mining assets and to identify other acquisition and/or joint venture opportunities in the mining sector, and to establish the technical and managerial infrastructure necessary to take advantage of, and successfully participate in, such opportunities; future economic conditions; demand for manganese and other minerals the company may seek to extract; political stability; and changes in governmental regulations, and financial capabilities of the Company. Additional information on risks and other factors that may affect the business and financial results of TurkPower and the combined company can be found in filings of TurkPower with the U.S. Securities and Exchange Commission. The Company encourages any current or potential shareholder to read all the public filings before making a decision to invest in the shares of any public company.
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SOURCE TurkPower Corporation