News

Strategic Resource Acquisition Corporation ("SRA") is ready to restart the work at its Mid-Tennessee zinc mining complex (MTM) after structural rehabilitation and commissioning of equipment. The Company expects to be producing its first concentrate in December. SRA announced that it has entered into an agreement in principle with Nyrstar SA/NV ("Nyrstar"), the world's largest producer of zinc metals and alloys, for the sale of a major portion of its zinc production from the MTM. The concentrate from MTM's facilities in Gordonsville will be processed at Nyrstar's smelter in Clarksville, Tennessee located 100 miles west of the MTM complex. The five year agreement provides for the sale of up to 90,000 tons annually, under industry benchmark terms to be agreed to annually, of MTM concentrate which will be transported to the Clarksville smelter where the concentrate was historically processed. Nyrstar has agreed to campaign (batch process) the zinc concentrate and return the residue complete with valuable germanium and gallium (Ge, Ga) by-products to SRA. Effective with this transaction, the great majority of MTM zinc production in the first five years has been allocated with the exception of the remainder reserved for spot market sales. The agreement will allow SRA to proceed with its plans to develop technology towards optimizing the recovery of the 80-90 t of Ge, Ga yearly and become a dominant producer of each metal. It will also serve to indirectly reduce the Company's cost of production placing SRA in the lower cost range of zinc producers.