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NEW YORK, Nov. 15 /PRNewswire-FirstCall/ —
Allied Energy Corporation (OTC: AGYP) is pleased to announce that Company representatives will be visiting Zambia next week to inspect the producing tin, tantalite and mica concessions (mining title and leases) in the area of Choma, Zambia collectively, the “Starfield Mine”).
As previously announced, the Company has entered into a Memorandum of Understanding with Starfield Minerals Ltd. (”Starfield”), for the purpose of acquiring Starfield itself or its sole asset, being the Starfield Mine.
Located in continental Southern Africa, the Republic of Zambia is one of the world’s principal tin producers and is extensively resource rich in other metals and minerals (e.g. copper, tungsten and nickel).
Allied Energy Corporation will focus on the profitable development of the Starfield Mine; however, the Company intends to aggressively pursue additional acquisitions complimentary to this initial transaction.
Production at the Starfield Mine is currently conducted by artisanal
workers using hand-labour and it is anticipated that extensive production efficiencies and volume improvement can quickly be achieved using mechanization.
When mining plant and equipment is installed, production is expected to increase, over time as implemented, from current nominal levels to potentially 400 tonnes per month of tin concentrate.
Due to current and forecast demand for tin, driven principally by demand in China and India, it is forecast that the price of tin will be sustained or increased from current levels. Currently, tin trades for $16,500 per tonne ($7.48 per pound) on the London Metal Exchange.
Tin (Sn) is classified in the group of base metals, which consist of
non- precious metals of great importance and utilization in the
infrastructure of society and industrialization.
Due to its low melting point, Tin easily binds to iron (steel), lead, copper, and zinc, which makes it an important coating material for prevention the rusting or oxidation.
The main industries that utilize tin are: food preservation canned foods), telecommunications, electric circuits, semiconductors, and architectural engineering.
For the year 2006, the global tin market was estimated at 360,000 tonnes, which translated into a total global USD value of approximately $5.5 Billion. This number is expected to grow significantly due to the rapid modernization and GDP growth of the large and emerging Asian economies (i.e. China, India, Indonesia).
As the Choma site is expected to be developed further, it is anticipated that most if not all of the current artisanal miners will be employed in this venture.
Additionally, adjacent sites have been identified for potential acquisition as part of expanded exploration and development activities.
Production will be delivered to market via South Africa or Tanzania.
Zambian, South African and American based entities have expressed a
willingness to purchase the product.
About Allied Energy Corporation:
Allied Energy Corporation is a publicly traded Company actively seeking a potential acquisition target within the natural resources sector. On October 31, 2007 the Company entered into a Memorandum of Understanding to acquire Starfield Minerals Ltd. or its assets. Starfield Minerals Ltd. owns a Zambia, Africa based tin and tantalite deposit (the “Starfield Mine”) in the vicinity of Choma, Republic of Zambia.
Contact: Antonio Treminio, Investor Relations, Allied Energy
Corporation, Tel: 212-315-9705, e-mail: Antonio@hotequities.com