Thursday, June 13, 2013

Overview of Raptor Resources Holdings, Inc. (RRHI) Subsidiaries and Opportunity in Zimbabwe

Raptor Resources is focused on mineral resource acquisition, exploration, and development, executed through two subsidiaries: publicly traded Mabwe Minerals, Inc. (OTCQB: MBMI), and TAG Minerals.

Mabwe is a natural resources and hard asset company engaged in the mining and commercial sales of industrial minerals and metals with first focus on barite. Along with its affiliate, Mabwe Minerals Zimbabwe (Private) Ltd., Mabwe owns 100% of the mineral and metal rights to the Dodge Mine property, which consists of three hydrothermal mountains representing 123 hectares containing multiple deposits of superior grade barite, limestone, and talc.

Mabwe is positioned to benefit from increasing demand for barite, which is used as a weighting agent for drilling fluids in oil and gas drilling applications to counteract the force of oil or gas released from the ground. According to Industrial Metals, global consumption of barite is expected to grow 30 percent by 2016, squeezed by high consumption and low availability.

Roughly 80% of the annual demand for barite ore is used in the oil & gas drilling sector (API-grade), mainly to prevent well blowouts and/or shaft collapse. The remaining 20% (non-API grade) is primarily used in paint, automotive, and medical applications that command a price premium for white barite.

The company reports that the “world class” hydrothermal barite deposits throughout Dodge Mine represent the highest grade of new barite sources to be announced in recent years, and has secured a long-term Master Supplier Agreement (MSA) with an established oil & gas drilling sector corporation representing 3 million metric tons of American Petroleum Institute (API) grade barite to be delivered at a rate of 220,000 metric tons per year.

Raptor Resources’ second subsidiary, TAG Minerals, is a mineral & metal resource acquisition, exploration, and development company primarily focused on alluvial surface gold. The company is currently engaged in two gold projects in Zimbabwe.

The Makuruanopamaenza Gold Project sits above the Mazowe River, which is known for its rich deposits of alluvial gold. The property is located within close proximity to Mabwe Minerals’ Dodge Mine. The company has registered 600 hectares of the greenfield mountain range with site development to begin the second half of calendar year 2013.

Raptor Resources has temporarily suspended bulk sampling of TAG Minerals’ second project, the ODZI Riverbed Project, as it channels its resources to continue fast-tracking Dodge Mine in light of rising global demand for barite. The company instead will concentrate its HPC-10 units along a tighter ODZI grid pattern to finalize the blocks.

For more information, visit www.raptorresourcesholding.com

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