NEW YORK, NY -- (Marketwire) -- 07/05/11 -- TurkPower Corporation (OTCBB: TRKP) (the 'Company') is pleased to announce the purchase of 50.09% working interest in Maksor Madencilik Sanayi Ve Ticaret Anonim Sirketi (hereafter 'Maksor'), the 100% private owner of the Kuluncak iron ore project in Turkey. The purchase agreement calls for the Company to complete acquisition of 50.09%-interest by December 28, 2011 for a total purchase price of EUR 15,000,000.00 and 73,000,000 shares of the Company. The purchase price and issuance of Company shares are scheduled with a total of 6 payments, including a down payment of EUR 1,000,000.00 which was made in 2010, with final payment and share issuance due December 28, 2011. The down payment and second payment, which was made upon signing of the purchase agreement on June 30th, 2011, secures the Company an irrevocable initial minority stake in Maksor.
Management is looking forward to reporting shortly with more details about the operation of the mine, the characteristics of the iron ore reserves and inferred resources, which include a substantial zinc resource, as well as other mining licenses that Maksor holds in Turkey.
TurkPower's Chairman Ryan E. Hart stated: 'This is a great day and milestone for TurkPower and its investors. With the purchase of controlling interest in the operational Kuluncak iron ore mine, TurkPower is taking its first step toward its goal of becoming a leading junior mining company in Turkey. The purchase adds a tangible and operational asset to the Company's balance sheet and leads to expected profitability in 2011. It also gives the Company leverage and credibility for future mining ventures and acquisitions in the booming mining industry of Turkey.'
About the Kuluncak Property
The Kuluncak iron ore mine is an open-pit mine which will be operated from May to November and which is expected to produce 550,000 metric tons of iron ore per season no later than 2014. According to a two-year feasibility study conducted in 2008 and 2009, the mine has estimated reserves of 20,900,000 metric tons for a net value of approximately $3bn based on current market prices for 58% - 62%-grade iron ore. The feasibility study was performed by one of the world's leading mining companies, which concluded: 'The project offers great value for money if a small mine is what one is looking for.' The mine was put into operation in June 2011, and has more than 140,000 metric tons of iron ore in inventory, which will be sold entirely no later than Q3 2011.
The Kuluncak mine produced more than 280,000 tons of iron ore in the late 1990s and all necessary infrastructure is already in place, including good quality roads to the railroad line with direct access to deep-sea ports and local steel smelters. The mine is located in the mining area of Malatya, Turkey, approximately 500km east of Turkey's capital Ankara.
About TurkPower Corporation
TurkPower Corporation (OTCBB: TRKP) is a Turkish-American junior mining company that is acquiring controlling ownership in an operational iron ore mine and several mining projects under development in Turkey. TurkPower's sole focus is on the booming Turkish mining industry, where it aims to become a leader in developing, operating and owning base metal mines by acquiring and consolidating operational mines with proven reserves, utilizing economies of scale to increase returns as well as developing new mining assets. TurkPower's board of directors, management team and employees have extensive experience and relations in the Turkish mining industry, as well as ongoing relations with the relevant government agencies, allowing TurkPower to participate in the major opportunities currently developing in Turkey.
-- 73m inhabitants
-- 17th-largest economy in the world
-- 2nd-fastest growing economy in the world
-- Member of NATO, OECD, OSCE and G-20
-- Classified as a democratic, secular and developed nation by the CIA
Turkey is an important player in the international minerals market due to its wealth of reserves, considerable production capacity and geographical advantages for transportation and shipping. Ranked 28th in global mining production, Turkey also ranks 10th in terms of variety and quantity of undeveloped minerals.
Turkey is the 2nd-fastest growing economy in the world, the 4th-largest shipbuilder, the 10th-largest steel-producing nation, a leading electronics manufacturer for Eastern Europe and the Middle East, and has recently surpassed Italy in terms of automobile production.
Safe Harbor Statement
The statements by our officers and other statements regarding optimism related to the business, consulting, service operations, expanding exploration and development activities and other statements in this press release are forward-looking statements within the meaning of the Securities Litigation Reform Act of 1995. Such statements are based on current expectations, estimates and projections about the Company's business and subject to successful financing. Words such as expects, anticipates, intends, plans, believes, sees, estimates and variations of such words and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and involve certain risks and uncertainties that are difficult to predict. Actual results could vary materially from the description contained herein due to many risk factors that affect the industry the Company operates in and other risk factors listed from time to time in the Company's Securities and Exchange Commission (SEC) filings under 'risk factors' and elsewhere.
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