$125 million in infrastructure financing for Heatherdale's Niblack
VANCOUVER, May 6, 2014 /CNW/ - Heatherdale Resources Ltd. ("Heatherdale"
or the "Company") (TSXV:HTR) is pleased to report the Alaska State
Legislature has unanimously passed Senate Bill 99 ("SB 99"), which
includes a provision authorizing the Alaska Industrial Development and
Export Authority ("AIDEA") to provide up to $125 million in financing
for infrastructure and construction costs at the Niblack Project - a
potential copper-gold-zinc-silver underground mine on Prince of Wales
Island in southeast Alaska.
State legislators from both sides of the aisle supported the bill as it
passed the Alaska State House and Senate unanimously. SB 99 authorizes
AIDEA to provide financial support to several important economic
development projects in Southeast Alaska - including Niblack and the
Bokan-Dotson Ridge rare earth project. The legislation was sponsored in
the Senate by Senator Lesil McGuire (R), with a key amendment
introduced by Senator Bert Stedman (R), and presented in the House by
Representative Eric Feige (R) and cross-sponsored by Representatives
Cathy MuÑoz (R), Sam Kito III (D), Jonathan Kreiss-Tomkins (D), Peggy
Wilson (R), Doug Isaacson (R), Andy Josephson (D) and Les Gara (D).
The Niblack provision of SB 99 authorizes AIDEA to issue bonds to
finance the construction of key infrastructure for the Niblack Project
up to $125 million - including a mineral processing mill and dock,
loading and associated infrastructure facilities at the Gravina Island
Industrial Complex ("GIIC"), and other facilities at the Niblack
Project site on Prince of Wales Island. The processing mill and
associated dock, loading and infrastructure facilities could be owned
and/or financed by AIDEA.
"The bipartisan support that SB 99 received in both houses of the
Legislature speaks to the importance of economic development in
Southeast Alaska and Niblack's role in the future of the region," said
Heatherdale President & CEO Patrick Smith. "I am very pleased with the
tremendous support the Niblack Project has received, and want to thank
all the members of Alaska'sState Senate and House of Representatives
for their hard work on this important legislation."
Smith said Heatherdale and the Niblack Project have been fortunate to
receive widespread support from all levels of government and
communities throughout Southeast Alaska, including business groups,
individual businesses and citizens who actively supported the passage
of SB 99 through direct contact with their elected officials. He noted
the Ketchikan Gateway Borough ("KGB") submitted a resolution in support
of SB 99; and AIDEA provided testimony in support of the Niblack
provision of the bill.
"We deeply appreciate the efforts of all elected officials, businesses
and individual citizens who supported this legislation, and in doing so
issued a vote of confidence in Heatherdale as the developer of this
important project for the region and the state," Smith said. "We look
forward to securing a major funding partner for Niblack, and to moving
the project into permitting, construction and operations in the months
and years ahead."
"I am pleased with the strong support we got for this bill which
features responsible resource development," said Alaska State Senator
Lesil McGuire (R-Anchorage). "This mining project is a step forward in
revitalizing the economy in Southeast Alaska by providing significant
employment opportunities. The renovation of the old lumber mill site
will create value-added exports, and partnering the developers with
AIDEA ensures fiscal responsibility with benefits to the entire state.
This is exactly the kind of win-win situation I was looking for."
SB 99 next goes to the Alaska Governor's office for formal signing. The
passage of the bill does not commit AIDEA or the State of Alaska to any
action. AIDEA must still go through its conventional project evaluation
and due diligence process prior to authorizing infrastructure financing
for the Niblack Project.
Heatherdale's 100%-owned Niblack Project has excellent potential to
support an important copper-gold-zinc silver underground mining
operation. In 2013, Heatherdale reached a Memorandum of Understanding
(MOU) with AIDEA to work collaboratively to advance the Niblack
Project. The agreement covers a range of initiatives, including
investigating potential plans to assist with financing energy
facilities and other project infrastructure. The AIDEA MOU builds on an
October 2012 MOU with the KGB, which defines the process by which
Heatherdale and the Borough will investigate the suitability of the
GIIC as a prospective site for off-site processing of Niblack material.
This already-established industrial site provides excellent access to
clean hydroelectric power and a local workforce.
The Niblack Project is located on tidewater near Ketchikan on Prince of
Wales Island in southeast Alaska, an area with a skilled workforce,
excellent power and transportation infrastructure as well as a long
history of public and official support for responsible mineral resource
development and mining.
Since 2009, Heatherdale has invested some $37 million and drilled more
than 200,000 feet of core to define 5.6 million tonnes of Indicated and
3.4 million tonnes of Inferred mineral resources at Niblack. While possessing significant potential for expansion, the
known mineral resources at Niblack provide a solid basis for the
initiation of engineering, environmental baseline and other technical
studies necessary for project planning and permitting.
On behalf of the Board of Directors
President and CEO
Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
This release includes certain statements that may be deemed
"forward-looking statements". All statements in this release, other
than statements of historical facts, that address exploration drilling,
exploitation activities and events or developments that the company
expects are forward-looking statements. Although the Company believes
the expectations expressed in such forward-looking statements are based
on reasonable assumptions, such statements are not guarantees of future
performance and actual results or developments may differ materially
from those in the forward-looking statements. Factors that could cause
actual results to differ materially from those in forward-looking
statements include market prices, exploitation and exploration
successes, continuity of mineralization, uncertainties related to the
ability to obtain necessary permits, licenses and title and delays due
to third party opposition, changes in government policies regarding
mining and natural resource exploration and exploitation, and continued
availability of capital and financing, and general economic, market or
business conditions. Investors are cautioned that any such statements
are not guarantees of future performance and actual results or
developments may differ materially from those projected in the
forward-looking statements. For more information on the Company,
investors should review the Company's continuous disclosure filings
that are available at www.sedar.com.
 Indicated grades 0.95% copper, 1.75 g/t gold, 1.73% zinc, 29.52 g/t
silver and inferred grades 0.81% copper, 1.32 g/t gold, 1.29% zinc,
20.10 g/t silver at a US$50 NSR cut-off. For further details see the
Heatherdale November 29, 2011 news release.
SOURCE Heatherdale Resources Ltd.