Prima Fluorspar Corp. (TSX-V: PF) announced on 30 August its entrance into a non-binding letter of intent with three funds managed by affiliates of New York-based Firebird Management LLC, to negotiate the purchase of holding companies through which Firebird controls its 99.8 percent ownership stake in Berkh Uul (MSE:BEU) JSC.

Berkh Uul owns the Delgerkhan fluorspar mine in Khentii Aimag. The transaction would grant Firebird a controlling stake in Prima, which would emerge as a significant fluorspar company with a diversified portfolio of fluorspar assets. The transaction will be considered a reverse takeover of Prima by Firebird, and will result in Prima's stock being halted from trading on the TSX Venture Exchange.

"As a result of a disciplined sourcing approach, we identified the Berkh Uul as an ideal acquisition target. This transaction provides the potential for Prima to become a near-term producer,” said the president and chief executive of Prima, Robert Bick. “The consolidation of the Delgerkhan mine in Mongolia with our Liard Fluorspar Property in Canada will position Prima as a potential global fluorspar producer and supplier."

Delgerkhan has an indicated resource of 6.6 million tons of resources, with an inferred resource of three million tons. China, Berkh Uul's target market, is expected to be a net importer of fluorspar. Prima has an experienced management team and industry partnerships set to drive activity. 

Public Relations Department

MONGOLIAN STOCK EXCHANGE