TSX : CUM
VANCOUVER, July 30 /PRNewswire-FirstCall/ - Copper Mountain Mining Corporation ('CMMC' or the 'Company') reports that the Company and Mitsubishi Materials Corporation ('Mitsubishi') have signed definitive agreements, namely Shareholders' Agreement, Share Subscription Agreement, Concentrates Sales and Purchase Agreement, and Secondment Agreement whereby Mitsubishi will acquire a 25% interest in the Copper Mountain Project ('Project'), located near Princeton, BC. In addition to purchasing a 25% equity interest in the Project for $28.75 million, Mitsubishi agreed to use commercially reasonable efforts to arrange a $250 million project loan, and has agreed to purchase all of the copper concentrate from the mine.
The Project is an open pit porphyry copper mine that operated from 1972 to 1996 and over its life produced 1.74 billion pounds of copper, 9.1 million ounces of silver and 730 thousand ounces of gold. The current resource is estimated at 5 billion pounds of copper at a 0.15 % Cu cut-off. The resource estimate incorporates data from over 4,400 historical drill holes totalling approximately 400,000 metres, and 370 new drill holes, totalling 107,000 metres from the Company's 2007 and 2008 exploration programs.
Mr. O'Rourke, Chief Executive Officer of the Company stated: 'In October 2008 the Company's Board of Directors authorized management to proceed with the development of the Copper Mountain Project subject to the Company finalizing its financing arrangements as well as obtaining the required operating permit amendments for the Project. I am extremely pleased to have such a strong partner as Mitsubishi join the Project which brings the financial clout of a major behind the Project, which is scheduled to commence production by mid 2011.'
To date, site activities have been funded by the Company's equity contributions and a $28.75 million line of credit from Mitsubishi, which together have totalled almost $40 million. Long lead items have been ordered with the SAG and ball mill manufacturing well underway to maintain the target production schedule for mid 2011. Detailed engineering is progressing and site geotechnical excavation for the concentrator is now complete. The office and warehouse complex is now fully functional with power, heat, water, telephones, internet, and sewerage. The Company currently has approximately 20 employees currently engaged at the site on construction activities. It is estimated that the project will provide employment for 200 construction workers at its peak and the ongoing operations will create 257 full time positions.
