Larry W. Reaugh, President and Chief Executive Officer of American Manganese Inc., (TSX.V: AMY; OTCQB: AMYZF) (“American Manganese” or the “Company”) is pleased to report on the company’s activities over 2013 as follows:
Chinese Patent Application
American Manganese Inc. has been notified that its patent application for China has entered the Examination Stage in the Chinese Patent office. Please see the press release dated June 11th 2013 for details of the process for producing high purity electrolytic manganese dioxide (EMD), chemical manganese dioxide (CMD) used in the lithium-ion rechargeable battery as well as electrolytic manganese metal (EMM) used in specialty steel. The hydro- metallurgical process has the potential to produce EMM, EMD and CMD in the lowest cost percentile worldwide.
A U.S Patent (# US 8,460,631 B2) for the same hydro-metallurgical process mentioned above was granted to the Company on June 11th, 2013.
Mineral Rights at Artillery Peak Renegotiation
In order to conserve capital and to focus on core assets, the Company has renegotiated the terms of its lease payments and reduced land holdings in the Artillery Peak Manganese district, Mohave County Arizona. Yearly obligations including taxes were reduced from $ 355,844.90 to $ 75,204.90, and all of these lease payments with the exception of taxes ($4,604.90, due December 31, 2013) have been paid. This was accomplished by deferring lease payments (of $170,000 per year) to August 13th 2015 under the Lake- Noone Lease and by terminating the Huffman Maggie Lease (costing$10,000.00 per year) and the Arizona Manganese Inc. Lease (costing $65,000 per year). The termination of the Arizona Manganese Lease results in the loss of Indicated Resources of 113,663,426 tonnes (grading 2.90% Mn) and Inferred Resources (of 40,360,503) tonnes ( grading 2.71 % Mn), both at a 0.90% cut off. Although the Company renounced the mineral rights to the Arizona Manganese lease it retains a 100% interest in the surface rights. The mineral resources for the claims by the procured Lake- Noone Lease are unaffected consisting of Indicated Resourses of 62,201,000 tonnes (grading 2.30% Mn) and Inferred Resources of 20,033,000 tonnes (grading 2.50% Mn) both at a 1.00% cut off. The Company further saved another $45,640.00 by reducing the number of unpatented claims in its portfolio from 426 to 100.
The Company completed a private placement of 3 million shares at $0.05 cents per share for proceeds of $150,000.00 on April 22nd 2013.
Changes in Directors
Mr. Ed Skoda and Mike MacLeod, P.Eng., joined the board of Directors at the AGM on March 11, 2013. They bring a combined 55 years of experience in mining exploration, development, construction and finance to the board of directors. Mr. Paul Hildebrand a lawyer with 30 years’ experience has resigned as a director but remains a major shareholder in the company. Paul has been a director since 2006 and has made a positive contribution over the past several years. The board of directors thanks him for his support and wishes him the best in his future endeavours.
The Company will continue to focus on EMD and CMD as the manganese product with the best opportunities for the Artillery Peak Manganese Project. Production of EMD and CMD has the potential to reduce capital and operating costs as the product only requires 60% of manganese metal as compared to 100% for the production of EMM.
The Company also will focus on locating higher-grade resources, particularly on the unpatented claims where potential exists to develop further resources as evidenced by the Company’s 2008 diamond drill program. Some of the better intercepts in the MacGregor area were 6.09m (20ft) grading 7.23% Mn in hole # ADH #2, 21.54m (70ft) grading 5.48% Mn in hole # ADH #3 and 27.44m (90ft) grading 4.02% Mn in hole # ADH 16. Another zone of higher grade was intercepted in hole #ADH#25 over 24.39m (80ft) grading 4.34% Mn located 3.5 kilometers SE of the MacGregor area. Hole ADH # 25 was a single hole drilled in an area of no outcropping and requires additional drilling to define size and grade. The Company has spent approximately $500,000 since 2010 in order to obtain drill permits from the Bureau of Land Management (BLM) for the unpatented land holdings. These expenditures ceased in early 2013 but could be re-instituted when the Company is able to procure additional funding.
For the past 14 months the Company has had in excess of forty contacts directly and indirectly with potential strategic partners and institution’s, most expressed interest in the Company but appear to be waiting for better market conditions.
The TSX.V market has dropped 1500 points since the second quarter of 2011. The TSX.V has performed poorly even though most metals have been going sideways with prices down about 20 – 25% from their recent highs, with the exception of gold and silver. The TSX Stock Exchange has gone sideways only recently breaking 13,000 and is now at about 13,300. Both exchanges are beginning to react to positive news and if the trend continues the climate for raising funds should improve. In the interim the Company is seeking ways to advance which includes strategic partnerships, joint ventures, mergers, equity and debt financing.
Further updates will be reported when they are received.
About American Manganese Inc.
American Manganese Inc. is a diversified exploration and development company focusing its attention on mineral properties and commodities used in the steel manufacturing industry.
This release has been reviewed by John W Fisher, P.Eng, a qualified person pursuant to National Instrument 43-101.
On behalf of Management
AMERICAN MANGANESE INC.
Larry W. Reaugh
President and Chief Executive Officer