Delta Minerals signs Letter of Intent for processing plant in Cagayan

Stockholm, July 25, 2014 – Delta Minerals has signed a Letter of Intent with Nova International, a Korean company, to operate its processing plant at the Cagayan River. The transfer of this Letter of Intent in a final agreement is subject to a successful Due Diligence, currently in process. The Due Diligence is expected to be finalized early August. The agreement also includes full permits.

Thereby, Delta Minerals will access a pilot plant enabling operation within in a few months. An optimal process for the extraction of minerals etc. from the sand will be developed at this plant, under the name Delta Process. This process will be used as a standard at Delta Mineral’s future production plants.

This agreement will enable the company to fine tune the production and deliver sand and gravel according to specification as well as high quality magnetite.

Delta Minerals has agreed on a monthly down payment to be deducted from the final amount at production start. Nova will receive a royalty on magnetite and the parties have also agreed on a profit sharing scheme. The financial outcome will be conveyed as Delta Minerals gains more experience from the pilot production. Delta Minerals also have the right to acquire 50% of the plant within three years. Any payments or investments should be deducted from the final payment.

Nova International is responsible that all permits are in order and are maintained.

Through this arrangement Delta Minerals will be able to start deliveries before the end of this year and the time schedule will thus be shortened significantly.

Information meeting Tuesday 12 August 2014
Due to the major changes and opportunities that this agreement opens up, Delta Minerals will hold an information meeting Tuesday 12 August at 10.00 at Hotel Birger Jarl Conference, Birger Jarlsgatan  61A, Stockholm.

Mr Cornelio Casido, President at Delta Minerals Global Pacific Inc. and representative for Nova International will participate and answer questions.

Lunch will be served after the meeting. Please register for the event at Delta Minerals homepage http://www.deltaminerals.se.

Delta Minerals project in the Philippines
In large river basins occurs frequently flooding, especially during monsoon season, which seriously impact the population in these areas with fatal accidents and large property damages due to the eroded and accumulated sand. By removing excess sand Delta Minerals activities are contributing to important environmental and social activities. The magnetite is extracted from the sand and sold to the steel industry.

For further information please contact
Hakan Gustafsson, Chairman, hakan.gustafsson@deltaminerals.se, mobile 070-268 00 35
Thomas Lundgren, CEO, thomas.lundgren@deltaminerals.se, mobile 0703-97 25 24.

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