LONDON, July 26, 2012 (GLOBE NEWSWIRE) -- Britannia Mining Plc, a UK based mining development company indicated to investors that talks with U.S. public mining company Micron Enviro Systems (Symbol: MSVS) have evolved from strategic alliance to possible merger.
In a courtship that began in the 2nd QT, many considerations have been given toward the possibilities of the two mining companies collaborating efforts. Britannia's initial concern was value – and would there be value in Britannia aligning itself with the smaller public company.
President and CEO Kenneth Roberts explained, "When we went into Malawi in 2008, our strategic relationship with a small mining entity controlling just 20 sq km of iron ore property posed the same concern for our investors. After four years however, we've invested a couple million dollars into the partnership and eventual acquisition. We also increased the iron ore rights by 630 sq km (to 650 sq km). We developed strong political relations in the region and have positioned Britannia and its Malawian subsidiary at the ready for explosive growth, if and when opportunity presents itself. We have certainly demonstrated the wherewithal to grow from an unlikely alliance in the past. I do believe we will prove our acumen once again in this relationship with Micron."
People close to the company indicated the relationship with the U.S. public entity may be the "opportunity" Britannia has been positioning for. Micron affords Britannia the ability to quickly and methodically diversify operations. Management can leverage its technical expertise and overall knowledge of mining and gold – ramping up existing exploration programs to possibly secure more immediate short-term cash flow for the two companies. Further, with recent diplomatic efforts by both the U.K. and U.S. within Malawi, the stage may be better set for investors to benefit considerably should Britannia bring its managerial resources and assets to the Britannia/Micron relationship.
People close to both companies also suggest that the immediate possible impact to Micron shareholders could be very positive should the actual merger consummate. The long-term value of having a very experienced international management team step into Micron – assisting with the effective managing and monetizing of Micron's recently expanded gold claims in the Yukon – could potentially add significant shareholder value and confidence.
Mr. Robert's concluded, "We are quickly moving toward an understanding of what both companies wish to achieve, and, what is needed to get there. If a merger works for both, then we shall actively pursue a merger. Given our outlook, however, we do intend to complete the preliminary stages of our discussion with Micron within the next week."
About Micron Enviro Systems, Inc.
Micron, a public company, trading under the symbol (MSVS.Pk) is an emerging mining company that plans on pursuing opportunities that will enhance shareholder value. Please visit Micron's website for more information of the locations of Micron's prospects at www.micronenviro.com.
If you have any questions, please call Micron at 516-474-0310. If you would like to be added to Micron's update email list, please send an email to info@micronenviro.com requesting to be added.
About Britannia Mining
Britannia Mining is an explorer and developer of mining projects. The company actively trades mined mineral products to its existing customer base. The company is developing a high grade iron ore project in Malawi and holds an Exclusive Prospecting Licence (EPL) for iron ore over 650 sq km at Nthale, Blantyre. From magnetic imaging studies that have been completed over a test area of 20 sq km, the company has located a number of ore bodies that indicate this 20 sq km area could yield upwards of 40 million tonnes iron ore. The company intends to mobilise a drilling program, where upon completion the data will provide a resource definition of the 20 sq km test area.
Britannia Mining is in talks with a number of potential partners to implement a near term mining plan at Nthale Hill.
Contact information
Nicola Newmarch +44 (0) 20 3 170 8565
Britannia Mining Plc
www.britanniamining.co.uk
www.britanniaminingmalawi.com
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