Elemental Minerals (ASX, TSX: ELM) has appointed Cutfield Freeman & Co. as its financial advisor to assist in the search for potential joint venture partners for the Sintoukola Potash Project in the Republic of Congo.
The company is in the process of initiating its Bankable Feasibility Study and is readying the project for development.
Cutfield Freeman & Co. is an independent corporate finance advisory firm with offices in London, Toronto and Hong Kong that specialises in the mining sector.
Iain Macpherson, chief executive officer, commented: "Cutfield Freeman & Co. is the right firm to implement our joint venture strategy.
"It has a track record of working with junior mining companies facing challenges similar to ours.
"We are confident that the opportunity to invest in this world class project, and secure reliable, long term potash supplies will be very attractive to potential partners."
In June 2012, Elemental initiated a review of various strategic alternatives to maximise shareholder value.
Based on this review, the company decided to seek one or more joint venture partners to participate in development and operation of the Sintoukola Project.
The aim of the process will be to secure joint venture arrangements that allow the project to be developed in a timely fashion.
A Pre-Feasibility Study conducted on the Sintoukola Project has indicated an after-tax NPV10 of US$2.97 billion (A$2.9 billion) and internal rate of return of 29.3%.
Production cash costs are tipped to be in the lowest quartile of global production costs at US$79.71 per tonne free-on-board.
There is also the potential to reduce the up-front capital costs by up to US$530 million with a corresponding increase in life of mine operating costs.
Sintoukola is expected to produce around 2 million tonnes per annum of muriate of potash from a conventional underground mine with a 23 year life of mine.
The project is located in a region with established infrastructure and is 90 kilometres from a deepwater port and industrial hub at Pointe Noire.
Elemental Minerals is well-funded with around A$20 million cash in the bank at the end of December 2012.
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