March 20, 2012

Provincial contribution announced for Canada Fluorspar mine, deep water port in St. Lawrence, Newfoundland

The Newfoundland and Labrador department of Innovation, Business and Rural Development announced Friday that the province signed a $17-million agreement with Canada Fluorspar Inc. (TSX-V: CFI) so the company can construct a deep water port facility and bring the firm “a step closer” to reactivating a mine in St. Lawrence.

“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 province stated in a press release.

In 2011, the province announced it would support the $100-million project with a $17-million repayable contribution. The final agreement signed this week outlines the terms and conditions of the provincial contribution, including project expenditures, repayment terms and “general security issues.”

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According to its corporate website, Canada Fluorspar plans to reactivate existing underground fluorspar mines, expand an existing mill, construct a new tailings management facility and build a new deep-water marine terminal in the outer St. Lawrence Harbour. The project is anticipated to produce between 120,000 and 180,000 tonnes of fluorspar filtercake concentrate per year.

Fluorspar is used to produce hydrofluoric acid, which in turn is used in the production of anesthetics, non-stick coatings fire retardant clothing, electronic components, aluminum and steel.

St. Lawrence is on the Burin Peninsula, about 340 kilometres by road (roughly 200 km as the crow flies) west of St. John’s. The harbour is about 50 kilometres east of the French territory of St. Pierre et Miquelon.

“Our partnership with Canada Fluorspar will lead to considerable activity that will resonate throughout the region and the province,” Keith Hutchings, Minister of Innovation, Business and Rural Development, stated in a press release. “From construction to production and all stages in between, this project will create tremendous economic, business, and employment opportunities.”

DCN DIGITAL MEDIA

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