The report estimates a value of USD $1.676 bln for Kimkanskoye and Sytarskoye deposits

Aricom Plc (AIM: TIO), the English-Russian developer of mineral resources, has announced that Wardell Armstrong International (“WAI”) independent consultant has estimated the cost of Aricom’s K&S (Kimkanskoye and Sytarskoye diposits situated in Evreyskaya Autonomy) project at US$1.676 bln.

In the press release Aricom reports that according to a preliminary analysis of the project, its maximum cost may be reached by processing of iron ore into pig iron.

Following receipt of WAI’s valuation of the project, Aricom has decided to acquire the remaining 50% of the project which it does not already own. Aricom has accordingly exercised its option to acquire from Philotus Holdings Ltd (“Philotus”) all the shares of the company which holds the remaining 50% of the K&S project.

Under the terms of Aricom’s existing option agreement the option exercise consideration will comprise the issue of 123.782.467 new Aricom shares to Philotus.