Cotton & Western Mining, Inc. Reaches Agreement to Acquire Mineral Rights
Robert L. Cotton, President & CEO of Cotton & Western Mining, Inc. (PINKSHEETS: CWRN), a global iron ore mining company, announced today that the Company has reached an agreement with Astrolabe Mining, Inc. of the Republic of the Philippines to acquire its mineral rights to the Dayap Iron deposit at 10 million metric tons (MMT), the Lapa-ao Iron deposit at 36MMT, the Lasala Iron deposit at 18MMT, and the Nagsabongan Iron deposit at 12MMT. The total iron reserves now placed into Cotton & Western Mining’s Pacific Pearl Mineral Assets are 76MMT(1) of Magnetite Iron Minerals. All of these iron deposits are located in close proximity along the upper reaches of the Mamburao River on the northwestern side of Mindoro Island in the central Philippines (see Mindoro Island Iron Deposits Map and Mindoro Island Location Map). The Free On Board value of the magnetite iron mineral assets, based on current offers of $45.00 per dry metric ton South China Sea, is $3,420,000,000.00, and the delivered value to China Main Ports, based at $68.00 per dry metric ton, is $5,168,000,000.00.
The seventeen months taken to acquire the Mindoro Island iron deposits are part of Cotton & Western Mining’s long-term goal of obtaining high grade magnetite iron minerals near to the China Market, and to reduce shipping costs to that market as compared to the company’s mineral assets located in Mexico. It also furthers the Company’s capabilities to gain a sizeable market share of the “China Iron Mineral Seaborne Trade.” The production scheduled to begin is based on gearing up for 400,000 DMT per month in the first six months of operations, and expanding capabilities to 600,000 DMT in the second six-month period.
Astrolabe Mining, Inc. shall be paid a fixed royalty fee for each dry metric ton of magnetite shipped, and as Cotton & Western Mining’s strategic in-country affiliate shall interface with the central and provincial government of the Philippines’ environmental and mining agencies to facilitate the required permits and licenses necessary to operate the “Pacific Pearl Mining Complex.”
Development and preparation for the Mining Plan, Environmental Impact Study, Land Usage Plan, Water Usage Plan and Mining Permit applications are underway on a fast-tract basis. It is anticipated that operations and shipping could begin as early as November 2006.
The Magnetite deposits are approximately 30km from a proposed loading site near Mamburao on the South China Sea. Cotton & Western Mining will build a private jetty out to a draft of 16 meters to accommodate Panamax and Cape sized bulk vessels.
Notes(1): The iron ore reserves were discovered and proven through a comprehensive three year geological survey and study of Mindoro Island Minerals carried out by the Metal Mining Agency of Japan (MMAJ), as commissioned by the Japan International Cooperation Agency (JICA) in response to a request of the Government of the Republic of the Philippines. A condensed version of the study complete with geological maps of the above referenced iron deposits will be posted at www.cottonwestern.com within the next thirty days for viewing by interested parties and our shareholders.
About Cotton & Western Mining, Inc.:
Cotton & Western Mining, Inc. (PINKSHEETS: CWRN) is a U.S. corporation structured to produce and sell iron ore on a global scale. Currently, the Company is engaged in several mining activities and provides the Asia Pacific Steel Manufacturing Sector with high grade A raw crude iron ore products.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Except for historical information, the forward-looking matters discussed in this news release are subject to certain risks and uncertainties which could cause the Company’s actual results and financial condition to differ materially from those anticipated by the forward-looking statements including, but not limited to, the Company’s liquidity and the ability to obtain financing, the timing of regulatory approvals, uncertainties related to corporate partners or third-parties, product liability, the dependence on third parties for manufacturing and marketing, patent risk, copyright risk, competition, and the early stage of products being marketed or under development, as well as other risks indicated from time to time in the Company’s filings with the Securities and Exchange Commission. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.
Contact: Cotton & Western Mining, Inc. Investor Relations Stephen Taylor Phone# (973) 351-3868 STEPHTAYL9@AOL.COM