On July 24, 2006, TEAL Exploration & Mining Incorporated announced that it had acquired an electric arc furnace with a capacity to produce approximately 5,000 tonnes per annum of 'black copper' ingots grading 85% to 95% copper.
TEAL intends to locate the furnace in Lubumbashi in the Democratic Republic of Congo. It is expected that the material feed for the furnace will be derived from TEAL's Kalumines Copper-Cobalt Project as well as locally available feedstock. The furnace operations will be operated by TEAL independently of Kalumines. TEAL plans to seek local minority equity partners in line with the Company's stated strategy of building the long-term sustainability of its assets in Africa.
Capital expenditure to commission the furnace, including the acquisition of the furnace and associated infrastructure, is anticipated to total US$4 million and will be funded using TEAL's existing cash resources. Operation of the smelter in the DRC will further depend on arrangements with the State concerning power and environmental permitting, which processes are both underway. In addition, TEAL will need to lease or acquire appropriate property in the DRC in order to establish the furnace on a permanent site. TEAL has entered into a letter of intent to acquire such property in the DRC for the sum of Euro 600,000.
Fasken Martineau advised TEAL in this acquisition with a team that included Al Gourley, Louise Vaillancourt-Châtillon and Mark Camilleri.