Maghreb Minerals narrow first half losses and continues to pursue fluorspar opportunities

Mar. 10, 2010

Maghreb Minerals halved its losses during the six-months ended 31 December 2009. The company and its funding partner Firebird continue to pursue opportunities in the fluorspar sector, while the base-metals assets in Tunisia remain under care and maintenance.
The company made a consolidated loss of 366,000 for the six month period, compared to a 892,000 in the comparative period of the previous financial year.
Maghreb said 2009 was a difficult year, and it was frustrated by the absence of the necessary funding required to further develop its main projects - due to the upheaval in financial markets. However, with the support of agreements struck with major shareholders Firebird, the company has been pursing the opportunities in the fluorspar sector which it is confident will add long term value.
With a newly re-constituted board, as of 31 March 2010, the company said it is actively exploring funding options and it continues to look for a partner for its Bou Jabeur and other lead and zinc assets.
"We are initiating new discussions with prospective partners for the Tunisian assets", Maghreb Minerals chairman Richard Linnell commented. "The board has received assurance from Firebird that Firebird will provide sufficient funding so as to guarantee the company's future on the current 'care and maintenance' basis for a further 12 months".
In November 2009, Maghreb raised an additional 300,000 in equity finance through the conversion of convertible loan notes into convertible preference shares. As a result, Firebird, between its Firebird Global Master Fund Ltd and Firebird Global Master Fund II, holds 31.73% of the company's ordinary shares and all of its preference shares, which would result in Firebird's interest increasing to 43.12% upon full conversion.
As at 31 December 2009, Maghreb had cash at bank of 207,000. Maghreb's assets include zinc, lead, barite and fluorite (fluorspar) exploration projects in Tunisia. The principal project is the The Bou Jabeur Gite Est deposit, which has an inferred resource of 4.76 Mt (million tonnes) grading at 5.67% combined Pb/Zn with 39.6% barite, 7.69% fluorite and 7.3 g/t silver.