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ElDore Mining Corporation to acquire Baita Copper mine in Romania

Last updated: 15:13 17 Mar 2011 AEDT, First published: 14:13 17 Mar 2011 AEDT

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ElDore Mining Corporation (ASX: EDM) will acquire a 100% interest in the Baita Copper mine located in Stei, Transylvania, West Romania.

The company will pay a consideration of €15 million to Far East & Pacific Investments (FEPI) including the reimbursement of €200,000 in expenses to complete the acquisition.

The purchase agreement requires the assumption of up to €1.5 million in debt and a deposit of €750,000 is payable within seven days. The transaction is subject to due diligence and shareholder and regulatory approvals.

The mine commenced operations in 1948 under the Romanian Government and was subsequently privatised. However, in 2010 the mine was closed due to problems with funding and capital investment.

The mine has a copper ore body within the existing mine footprint. Recent drilling of two holes, 90 metres below the ore body shows the existence of an additional mineralisation.

There is also the presence of Rare Earth Elements identified which appear to increase in concentration at depth which could add to the production profile.

The mine has a rated throughput capacity of 120,000 tons per annum and production peaked in 2004 at 100,000 tons.  It has been on care and maintenance since 2010. Prior to the mine’s closure, throughput over the previous 7 year period had exceeded 560,000 tons of ore mined.

ElDore  plans to re-establish mining operations and prove additional resources to JORC compliance with 5000 metres of infill drilling following completion of the acquisition.

On completion of the drilling program the company then plans to upgrade the production facility and plant capacity up to 200,000 tons per annum, thereby extending the mine life, subject to a satisfactory outcome of the drilling program.

In addition to the mineralisation, Baita has approximately 4.6 million tons of tailings on site which assays have confirmed contains copper, gold, silver, molybdenum, wolfram, zinc, lead.

Eldore recently raised $3.31 million through a private placement of 255 million shares at $0.013 per share to fund due diligence and general working capital.

Romania is a member state of the European Union and has an established mining history.

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