TORONTO, ONTARIO--(Marketwire - April 27, 2009) - Stingray Copper Inc. (TSX:SRY) ("Stingray" or the "Corporation") is pleased to announce the results of the definitive Feasibility Study (the "Study") on the Corporation's 100% owned El Pilar oxide copper project located in Sonora, Mexico. Based on the positive results of the Study, the Board of Directors of the Corporation has approved the project for development as a low cost, open pit mine with a solvent extraction and electro-winning plant to treat oxide mineral reserves, subject to financing. M3 Engineering & Technology Corporation ("M3") of Tucson, Arizona has prepared the Study and related NI 43-101 Technical Report.
Peter Mordaunt, Chairman and CEO of Stingray states: "Our objectives, milestones and time table established 2 years ago have been realized both on time and on budget. The results of this Feasibility Study are in line with our conceptual ideas both technically and economically from the start of this detailed work. Oxide copper projects of this size are indeed rare today and the positive conclusions from the Study demonstrate the economics of the project quite clearly. Specifically, low capital and operating costs are characteristic of oxide copper deposits and El Pilar is no exception. Although the financial landscape of the copper industry has changed significantly since the start of work at El Pilar, the demand for copper has remained strong. Stingray's ultimate objective of becoming a mid-tier copper producer in North America with excellent operating infrastructure at El Pilar has not changed."
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Showing posts with label Copper. Show all posts
Showing posts with label Copper. Show all posts
Thursday, April 30, 2009
Wednesday, November 26, 2008
The Completion of Drilling at the Cheneville Property by Pacific North West Capital & SOQUEM
Pacific North West Capital Corp. and SOQUEM INC. are pleased to announce the completion of drilling at the Cheneville property, located approximately 120 kilometers northwest of Montreal, QC. The property was staked as part of the Taureau reconnaissance program, which is a 50:50 joint venture between PFN and SOQUEM designed to evaluate the Nickel-Copper-Platinum Group Metal potential of mafic intrusions in the Grenville Geological Province of southern Quebec. SOQUEM INC. acts as operator of the Taureau project.
Pacific North West Capital Corp. and SOQUEM INC. are pleased to announce the completion of drilling at the Cheneville property, located approximately 120 kilometers northwest of Montreal, QC. The property was staked as part of the Taureau reconnaissance program, which is a 50:50 joint venture between PFN and SOQUEM designed to evaluate the Nickel-Copper-Platinum Group Metal potential of mafic intrusions in the Grenville Geological Province of southern Quebec. SOQUEM INC. acts as operator of the Taureau project.
The Cheneville property is, in part, underlain by a series of mafic intrusions that locally host zones of sulphide mineralization. One such zone in the Cheneville intrusion returned average grades of 1.17grams per tonne (g/t) Pd, 0.14g/t Pt, 0.29g/t Au, 1.62% Cu, and 0.35% Ni from two grab samples. The recently completed drilling program at Cheneville was designed to test the down dip continuity of this mineralization. The drilling commenced on November 14, 2008 and was completed on November 18, 2008. A total of 471 meters of drilling was completed in three holes. Assays are pending, and results will be reported when available.
Pacific North West Capital Corp. and SOQUEM INC. are pleased to announce the completion of drilling at the Cheneville property, located approximately 120 kilometers northwest of Montreal, QC. The property was staked as part of the Taureau reconnaissance program, which is a 50:50 joint venture between PFN and SOQUEM designed to evaluate the Nickel-Copper-Platinum Group Metal potential of mafic intrusions in the Grenville Geological Province of southern Quebec. SOQUEM INC. acts as operator of the Taureau project.
The Cheneville property is, in part, underlain by a series of mafic intrusions that locally host zones of sulphide mineralization. One such zone in the Cheneville intrusion returned average grades of 1.17grams per tonne (g/t) Pd, 0.14g/t Pt, 0.29g/t Au, 1.62% Cu, and 0.35% Ni from two grab samples. The recently completed drilling program at Cheneville was designed to test the down dip continuity of this mineralization. The drilling commenced on November 14, 2008 and was completed on November 18, 2008. A total of 471 meters of drilling was completed in three holes. Assays are pending, and results will be reported when available.
Tamerlane Ventures Inc. owns 100% f the Los Pinos project.
Tamerlane Ventures Inc. announced that it has exercised its option on the Los Pinos copper project in Peru, and as a result the Company now owns 100% of the Los Pinos project. Los Pinos is located in the Coastal Cordillera of southern Peru. The concessions comprise Los Pinos No. 1 (600 hectares), Los Pinos No. 6 (90 hectares) and El Pino (100 hectares).
The Los Pinos deposit is an oxide copper deposit developed on a porphyry system. The deposit consists of three mineralized zones, and has the potential for open pit mining, heap leaching followed by solvent extraction/electrowinning to recover the copper.
Tamerlane originally announced the option to acquire Los Pinos on March 27, 2007. The total acquisition cost was US$1,000,000. There is no royalty payable on the Los Pinos project.
In 1994, Pincock, Allen & Holt (PAH) carried out an evaluation of the Los Pinos Project for Asarco Inc. PAH’s report summarized the resource modeling methodology, resource estimate, mine plans, and mineable reserves. Capital and operating costs were reviewed and mine plans were generated. PAH provided data for ASARCO Inc. to incorporate into a prefeasibility-level evaluation of the project. The historical geologic resource estimated by PAH in 1994 was 63,191,000 tonnes with an average grade of 0.36% total copper at a cut-off grade of 0.22% copper. Within the geologic resource, a floating cone pit was designed at $0.90 per pound copper that contained 40 million tonnes of ore at a grade of .41% oxide copper. A mine plan and production schedule demonstrated mining 3.6 million tonnes per year for 10 years at an average grade of 0.40% copper with a strip ratio of 1 to 1 producing approximately 25 million pounds of cathode copper per year. The copper price used in the 1994 study was US$0.90 per pound compared to about US$1.56 per pound at present. Investors are advised that the PAH feasibility data is outdated, and a qualified person has not done sufficient work to classify the historical estimate as current mineral resources. The issuer is not treating the historical estimate as current mineral resources and the historical estimate should not be relied upon
The Los Pinos deposit is an oxide copper deposit developed on a porphyry system. The deposit consists of three mineralized zones, and has the potential for open pit mining, heap leaching followed by solvent extraction/electrowinning to recover the copper.
Tamerlane originally announced the option to acquire Los Pinos on March 27, 2007. The total acquisition cost was US$1,000,000. There is no royalty payable on the Los Pinos project.
In 1994, Pincock, Allen & Holt (PAH) carried out an evaluation of the Los Pinos Project for Asarco Inc. PAH’s report summarized the resource modeling methodology, resource estimate, mine plans, and mineable reserves. Capital and operating costs were reviewed and mine plans were generated. PAH provided data for ASARCO Inc. to incorporate into a prefeasibility-level evaluation of the project. The historical geologic resource estimated by PAH in 1994 was 63,191,000 tonnes with an average grade of 0.36% total copper at a cut-off grade of 0.22% copper. Within the geologic resource, a floating cone pit was designed at $0.90 per pound copper that contained 40 million tonnes of ore at a grade of .41% oxide copper. A mine plan and production schedule demonstrated mining 3.6 million tonnes per year for 10 years at an average grade of 0.40% copper with a strip ratio of 1 to 1 producing approximately 25 million pounds of cathode copper per year. The copper price used in the 1994 study was US$0.90 per pound compared to about US$1.56 per pound at present. Investors are advised that the PAH feasibility data is outdated, and a qualified person has not done sufficient work to classify the historical estimate as current mineral resources. The issuer is not treating the historical estimate as current mineral resources and the historical estimate should not be relied upon
Friday, October 24, 2008
Copper, aluminium price sink to 3-yr lows on demand worries
“Daily Mining and Exploration News on Copper and Aluminium”—-Copper and aluminium price tumbled to their lowest in almost three years on Wednesday, dragged down by worries about slowing demand for metals and a strong dollar.
Major U.S. stock indexes fell more than 3 percent in early trade while European stocks sank 5 percent, led lower by falling mining stocks such as BHP Billion and Rio Tinto.
London Metal Exchange copper for delivery in three months dropped to $4,099 a tonne, its weakest since November 2005 and in Shanghai, copper plunged by its 5 percent limit to 36,070 yuan ($5,278) a tonne, a three-year low.
By 1409 GMT, copper was at $4,125 per tonne versus $4,500 on Tuesday. The metal, used in power and construction, has more than halved from a record high of $8,940 a tonne in July.
“What we’re seeing is market pricing expectations of near recessionary demand for base metals,” analyst Gayle Berry at Barclays Capital said, adding a rise in copper stocks also added to worries of weakening demand.
Copper stocks in LME warehouses rose 1,850 tonnes to 207,750 — about 90 percent above the lows for this year seen in May and accounting for just over four days of global consumption.
The dollar also weighed on metals, as it soared to a two-year high against the euro and a five-year high against sterling. Metals are priced in dollars, and a stronger dollar makes it more expensive for holders of other currencies.
“The stronger dollar is also having an influence as it reduces demand for metals from around the world,” said Ashok Shah, chief investment officer at London & Capital.
CHINA SLOWS
The prices of some metals rallied to record highs this year, and seemed immune to the credit crunch that began to take its toll on other markets last year because demand in China appeared intact, analysts say. But that seems to have changed.
“Demand from China was a big driver and now the momentum in terms of demand is coming down very quickly,” said Shah.
Growth China — the world’s biggest consumer of copper — is slowing, and data this week showed soft industrial production and a fall in GDP growth to 9 percent in the third quarter from above 10 percent.
The world’s biggest miner BHP Billiton warned Chinese demand was set to weaken, although it showed little sign of trimming output.
“China has not been immune to the global slowdown,” BHP said. “We expect volatility and uncertainty to continue in the short term.”
China is also the world’s biggest buyer of aluminium scrap, used to produce aluminium alloy, and scrap merchants were defaulting on and delaying imports of contracted scrap, traders said.
Aluminium plummeted to $1,976 per tonne, its lowest since November 2005 and was last at $2,000 versus Tuesday’s $2,080. Lead fell almost 9 percent or $120 to a low of $1,250 a tonne — the lowest since September 2006.
Zinc shed $21 to $1,144 a tonne and earlier it touched $1,118 — the lowest since December 2004 and nickel traded down at $10,150 from $10,700/10,705.
Tin lost 6.4 percent to $11,510, its weakest since January 2007, before being quoted at $11,625, down $675.
Metal Prices at 1428 GMT
Metal Last Change Pct Move End 2007 Ytd Pct
move
LME Cu 4130.00 -370.00 -8.22 6670.00 -38.08
SHFE Cu* 36070.00 -1090.00 -2.93 56880.00 -36.59
LME Alum 1993.00 -87.00 -4.18 2403.00 -17.06
SHFE Alu* 13700.00 -420.00 -2.97 18180.00 -24.64
COMEX Cu** 188.30 -12.40 -6.18 303.05 -37.87
LME Zinc 1144.00 -21.00 -1.80 2370.00 -51.73
SHFE Zinc* 9800.00 -410.00 -4.02 18950.00 -48.28
LME Nick 10050.00 -500.00 -4.74 26350.00 -61.86
LME Lead 1245.00 -125.00 -9.12 2550.00 -51.18
LME Tin 11625.00 -675.00 -5.49 16400.00 -29.12 ** 1st contract month for COMEX copper * 3rd contact month for SHFE AL, CU and ZN SHFE ZN began trading on 26/3/07
Major U.S. stock indexes fell more than 3 percent in early trade while European stocks sank 5 percent, led lower by falling mining stocks such as BHP Billion and Rio Tinto.
London Metal Exchange copper for delivery in three months dropped to $4,099 a tonne, its weakest since November 2005 and in Shanghai, copper plunged by its 5 percent limit to 36,070 yuan ($5,278) a tonne, a three-year low.
By 1409 GMT, copper was at $4,125 per tonne versus $4,500 on Tuesday. The metal, used in power and construction, has more than halved from a record high of $8,940 a tonne in July.
“What we’re seeing is market pricing expectations of near recessionary demand for base metals,” analyst Gayle Berry at Barclays Capital said, adding a rise in copper stocks also added to worries of weakening demand.
Copper stocks in LME warehouses rose 1,850 tonnes to 207,750 — about 90 percent above the lows for this year seen in May and accounting for just over four days of global consumption.
The dollar also weighed on metals, as it soared to a two-year high against the euro and a five-year high against sterling. Metals are priced in dollars, and a stronger dollar makes it more expensive for holders of other currencies.
“The stronger dollar is also having an influence as it reduces demand for metals from around the world,” said Ashok Shah, chief investment officer at London & Capital.
CHINA SLOWS
The prices of some metals rallied to record highs this year, and seemed immune to the credit crunch that began to take its toll on other markets last year because demand in China appeared intact, analysts say. But that seems to have changed.
“Demand from China was a big driver and now the momentum in terms of demand is coming down very quickly,” said Shah.
Growth China — the world’s biggest consumer of copper — is slowing, and data this week showed soft industrial production and a fall in GDP growth to 9 percent in the third quarter from above 10 percent.
The world’s biggest miner BHP Billiton warned Chinese demand was set to weaken, although it showed little sign of trimming output.
“China has not been immune to the global slowdown,” BHP said. “We expect volatility and uncertainty to continue in the short term.”
China is also the world’s biggest buyer of aluminium scrap, used to produce aluminium alloy, and scrap merchants were defaulting on and delaying imports of contracted scrap, traders said.
Aluminium plummeted to $1,976 per tonne, its lowest since November 2005 and was last at $2,000 versus Tuesday’s $2,080. Lead fell almost 9 percent or $120 to a low of $1,250 a tonne — the lowest since September 2006.
Zinc shed $21 to $1,144 a tonne and earlier it touched $1,118 — the lowest since December 2004 and nickel traded down at $10,150 from $10,700/10,705.
Tin lost 6.4 percent to $11,510, its weakest since January 2007, before being quoted at $11,625, down $675.
Metal Prices at 1428 GMT
Metal Last Change Pct Move End 2007 Ytd Pct
move
LME Cu 4130.00 -370.00 -8.22 6670.00 -38.08
SHFE Cu* 36070.00 -1090.00 -2.93 56880.00 -36.59
LME Alum 1993.00 -87.00 -4.18 2403.00 -17.06
SHFE Alu* 13700.00 -420.00 -2.97 18180.00 -24.64
COMEX Cu** 188.30 -12.40 -6.18 303.05 -37.87
LME Zinc 1144.00 -21.00 -1.80 2370.00 -51.73
SHFE Zinc* 9800.00 -410.00 -4.02 18950.00 -48.28
LME Nick 10050.00 -500.00 -4.74 26350.00 -61.86
LME Lead 1245.00 -125.00 -9.12 2550.00 -51.18
LME Tin 11625.00 -675.00 -5.49 16400.00 -29.12 ** 1st contract month for COMEX copper * 3rd contact month for SHFE AL, CU and ZN SHFE ZN began trading on 26/3/07
China Western Mining to start up Tibet copper plant
Western Mining Co, China’s seventh-largest copper miner, said on Wednesday it will launch trial production on Friday at a smelter at its Yulong copper mine, the country’s largest copper deposit in Tibet.
“Daily Mining Exploration News” The plant will produce at most 2,000 tonnes of refined copper by the end of the year if the trial run is successful, according to a company statement to the Shanghai Stock Exchange.
By 2010, the plant is expected to have production capacity of 20,000 tonnes, the company said.
Yulong has proven reserves of more than 6.5 million tonnes of copper in ore and prospective reserves of 10 million tonnes. Western Mining holds a 58% stake in the mine.
Western Mining shares on the Shanghai Stock Exchange were trading at 6.78 yuan on Wednesday morning, down 20% this month and trailing the Shanghai Composite Index’s 12% decline.
“Daily Mining Exploration News” The plant will produce at most 2,000 tonnes of refined copper by the end of the year if the trial run is successful, according to a company statement to the Shanghai Stock Exchange.
By 2010, the plant is expected to have production capacity of 20,000 tonnes, the company said.
Yulong has proven reserves of more than 6.5 million tonnes of copper in ore and prospective reserves of 10 million tonnes. Western Mining holds a 58% stake in the mine.
Western Mining shares on the Shanghai Stock Exchange were trading at 6.78 yuan on Wednesday morning, down 20% this month and trailing the Shanghai Composite Index’s 12% decline.
Thursday, October 23, 2008
3-Xstrata needs no refinancing, Q3 copper down 8 pct
“Daily Updated Mining & Exploration News”— Mining group Xstrata Plc said on Tuesday it is well placed with financing and posted solid third-quarter production results, except in mined copper, its most important metal.
Xstrata received a new $5 billion revolving facility to refinance existing debt and for general purposes on Oct. 1.
“As a result, Xstrata has no significant debt refinancing requirements until 2011,” a statement said.
Xstrata shares, which have tumbled 75 percent since touching a peak in May, jumped 13 percent after rumours circulated that Brazil’s Vale was interested in building up a near-30 percent stake. Xstrata declined to comment.
Vale, the world’s biggest iron ore producer, held takeover talks with Xstrata earlier this year, but the two parties called them off when they failed to agree on terms.
A source at Vale said on Tuesday that while Xstrata was still a possible takeover target, it would struggle to have an offer accepted by Xstrata shareholders given its Swiss rival’s sharply lower share price
Xstrata shares later gave up much of their gains to close 3.3 percent firmer at 1,071 pence, compared with a 1 percent increase in the UK mining index.
Analyst Simon Toyne at Numis Securities said the production numbers were in line with or marginally better than his forecasts, except in copper.
“Impacts from Q3 production data on 2008/9 profit forecasts will be negligible and substantially overwhelmed by commodity price assumptions. Currently our forecasts imply Xstrata trading on a 2009 P/E of 1.9x versus the large cap sector average of 3.9x,” he said in a research note.
The stock has underperformed the UK mining index by 30 percent since May 19 and Cazenove said in a research note this was mainly due to worries over refinancing of both Xstrata and its 34 percent shareholder Glencore.
Toyne said he believed the worries over privately held, Swiss-based Glencore have been overdone and Cazenove referred to a recent S&P report on the firm that said it had an adequate liquidity position.
PROFIT DRIVERS
Copper and coal were the two biggest profit drivers for Xstrata in the first half, accounting for 45 percent and 23 percent of earnings before interest, tax, depreciation and amortisation (EBITDA) respectively.
The Anglo-Swiss group, the world’s fifth biggest diversified mining group by market value, said mined copper production fell 8 percent to 234,615 tonnes in the three months to the end of September against the same period last year.
This was mainly due to lower volumes from its Collahuasi mine in Chile, a joint venture with Anglo American Plc. Although mined copper output fell, copper cathode production increased 17 percent to 212,635 tonnes.
Xstrata said consolidated coal production increased 12 percent to 23.5 million tonnes, with thermal coal output higher but coking coal operations in Australia showing a decline.
Output of nickel, which accounted for 12 percent of first-half EBITDA, rose 17 percent to 13,620 tonnes, mainly due to the takeover of Australia’s fifth largest nickel producer Jubilee Mines in January 2008.
Zinc in concentrate jumped 30 percent to 241,881 tonnes following the expansion of Australian operations and launch on July 1 of production at the new Perseverance mine in Canada.
Xstrata, one of the world’s two biggest ferrochrome producers, posted a 4 percent rise in attributable chrome output to 308,000 tonnes.
Consolidated platinum production soared 158 percent to 36,250 ounces due to the ramp up of the Elandsfontein mine and concentrator in South Africa.
Xstrata received a new $5 billion revolving facility to refinance existing debt and for general purposes on Oct. 1.
“As a result, Xstrata has no significant debt refinancing requirements until 2011,” a statement said.
Xstrata shares, which have tumbled 75 percent since touching a peak in May, jumped 13 percent after rumours circulated that Brazil’s Vale was interested in building up a near-30 percent stake. Xstrata declined to comment.
Vale, the world’s biggest iron ore producer, held takeover talks with Xstrata earlier this year, but the two parties called them off when they failed to agree on terms.
A source at Vale said on Tuesday that while Xstrata was still a possible takeover target, it would struggle to have an offer accepted by Xstrata shareholders given its Swiss rival’s sharply lower share price
Xstrata shares later gave up much of their gains to close 3.3 percent firmer at 1,071 pence, compared with a 1 percent increase in the UK mining index.
Analyst Simon Toyne at Numis Securities said the production numbers were in line with or marginally better than his forecasts, except in copper.
“Impacts from Q3 production data on 2008/9 profit forecasts will be negligible and substantially overwhelmed by commodity price assumptions. Currently our forecasts imply Xstrata trading on a 2009 P/E of 1.9x versus the large cap sector average of 3.9x,” he said in a research note.
The stock has underperformed the UK mining index by 30 percent since May 19 and Cazenove said in a research note this was mainly due to worries over refinancing of both Xstrata and its 34 percent shareholder Glencore.
Toyne said he believed the worries over privately held, Swiss-based Glencore have been overdone and Cazenove referred to a recent S&P report on the firm that said it had an adequate liquidity position.
PROFIT DRIVERS
Copper and coal were the two biggest profit drivers for Xstrata in the first half, accounting for 45 percent and 23 percent of earnings before interest, tax, depreciation and amortisation (EBITDA) respectively.
The Anglo-Swiss group, the world’s fifth biggest diversified mining group by market value, said mined copper production fell 8 percent to 234,615 tonnes in the three months to the end of September against the same period last year.
This was mainly due to lower volumes from its Collahuasi mine in Chile, a joint venture with Anglo American Plc. Although mined copper output fell, copper cathode production increased 17 percent to 212,635 tonnes.
Xstrata said consolidated coal production increased 12 percent to 23.5 million tonnes, with thermal coal output higher but coking coal operations in Australia showing a decline.
Output of nickel, which accounted for 12 percent of first-half EBITDA, rose 17 percent to 13,620 tonnes, mainly due to the takeover of Australia’s fifth largest nickel producer Jubilee Mines in January 2008.
Zinc in concentrate jumped 30 percent to 241,881 tonnes following the expansion of Australian operations and launch on July 1 of production at the new Perseverance mine in Canada.
Xstrata, one of the world’s two biggest ferrochrome producers, posted a 4 percent rise in attributable chrome output to 308,000 tonnes.
Consolidated platinum production soared 158 percent to 36,250 ounces due to the ramp up of the Elandsfontein mine and concentrator in South Africa.
Saturday, September 20, 2008
Special Meeting of The Shareholders Held by Sherwood Copper Corporation
Sherwood Copper Corporation announced that it has set November 14, 2008 as the date for a special meeting of its shareholders to vote in respect of the business combination with Capstone Mining Corp., details of which were announced on September 8, 2008. Since the date of the announcement, Sherwood’s management has had discussions with the majority of its shareholders, who have indicated that they intend to support the transaction at the special meeting. Indications are expressions of intent and do not represent firm commitments and no lock up agreements have been entered into.
Transaction Rationale
Sherwood and Capstone also reiterated the benefits of the business combination by noting the following combined company attributes:
- Two high grade, low cost mining operations in pro mining jurisdictions - Sherwood’s Minto copper-gold mine and Capstone’s Cozamin copper-silver mine;
- Pro forma combined production of 37 million pounds of copper in concentrates at total cash costs of US$0.97 per pound in the first half of 2008 with higher production anticipated in the second half as both operations complete their ramp up to their expanded capacity;
- Pro forma cash flow from operations of US$75.7 million in the first half of 2008;
- Forecast production of 85 million pounds of copper in concentrates in 2008, increasing to 110 million pounds in 2009, with significant by-products of gold, silver, lead and zinc;
- Forecast total cash costs of under US$1.00 per pound of payable copper in 2008 and 2009, including all off-site costs and net of by-product credits;
- Continued focus on organic growth through exploration at existing mines, where resources have increased substantially over the past three years even before incorporating the results of major exploration programs carried out at both mines in 2008;
- Well funded pro forma combined entity, with exceptional cash flow generating capacity, that is well positioned to fund (a) continued growth at existing high grade Minto and Cozamin mines, (b) the advancement of the high grade Kutcho copper project towards a production decision, and (c) accretive merger and acquisition opportunities;
- Significant downside protection through the combined forward sales positions that extend into 2011 and beyond, yet with significant upside leverage to metal prices since more than half of the production will be delivered at spot prices during that period, before accounting for proposed production expansions (which would increase exposure to spot prices);
- A combined management team with complementary experience and a proven track record of building and profitably operating mines to create shareholder wealth, supported by a seasoned and experienced board of directors;
- Enhanced market exposure for Sherwood’s shareholders through access to Capstone’s TSX listing and increased weighting in the TSX composite index.
Sherwood and Capstone believe that their shareholders will benefit from the tax-effective combination of the two companies and the creation of a significantly enhanced business platform.
The special meeting of Sherwood’s shareholders will be held in the offices of Sherwood’s counsel, Dumoulin Black, on the 10th floor of 595 Howe Street, Vancouver BC at 10:00 AM on November 14, 2008. Additional information will be provided in the information circular to be mailed to Sherwood’s shareholders in October 2008.
Capstone is a Canadian based mining company currently operating the 100% owned Cozamin copper-silver-lead-zinc mine located in Zacatecas State, Mexico. The Cozamin Mine produced 6.7 million pounds of copper at a total cash cost of US$0.90 per pound in the three months ended June 30, 2008. Capstone has approximately 80.3 million shares outstanding and is well financed with no bank debt, and approximately US$100 million in working capital and marketable securities as of June 30, 2008, based on current share prices.
Additional information on Capstone Mining and its Cozamin Mine is available on Capstone’s website at http://www.capstonemining.com.
Sherwood Copper’s objective is the profitable production of base and precious metals from high grade, open pit mines in Canada. Sherwood’s first operating mine, the high grade Minto copper-gold mine in Yukon, Canada, was built on budget and ahead of schedule. The Minto Mine is one of the highest-grade open pit copper-gold mines in the world, and is a low cost producer. Aggressive exploration on the Minto property has yielded significant success, providing Sherwood the opportunity to ‘grow from within’ by expanding the resource and reserve base, potentially leading to further production increases. To further accelerate its production growth, Sherwood intends to pursue merger & acquisition opportunities that fit its business model and, in May 2008, Sherwood acquired 100% ownership in Western Keltic Mines (now Kutcho Copper Corp.), owner of the high-grade Kutcho copper-zinc-gold-silver deposit in northwestern British Columbia. Sherwood expects to lever off its successful development of the Minto Mine and rapidly advance the Kutcho project to a production decision. Sherwood has also agreed to combine with Capstone Mining, subject to requisite shareholder and regulatory approvals, creating a new low cost, growth oriented copper producer with two high grade mines and a strong balance sheet.
Additional information on Sherwood and its Minto Mine can be obtained on Sherwood’s website at http://www.sherwoodcopper.com.
Transaction Rationale
Sherwood and Capstone also reiterated the benefits of the business combination by noting the following combined company attributes:
- Two high grade, low cost mining operations in pro mining jurisdictions - Sherwood’s Minto copper-gold mine and Capstone’s Cozamin copper-silver mine;
- Pro forma combined production of 37 million pounds of copper in concentrates at total cash costs of US$0.97 per pound in the first half of 2008 with higher production anticipated in the second half as both operations complete their ramp up to their expanded capacity;
- Pro forma cash flow from operations of US$75.7 million in the first half of 2008;
- Forecast production of 85 million pounds of copper in concentrates in 2008, increasing to 110 million pounds in 2009, with significant by-products of gold, silver, lead and zinc;
- Forecast total cash costs of under US$1.00 per pound of payable copper in 2008 and 2009, including all off-site costs and net of by-product credits;
- Continued focus on organic growth through exploration at existing mines, where resources have increased substantially over the past three years even before incorporating the results of major exploration programs carried out at both mines in 2008;
- Well funded pro forma combined entity, with exceptional cash flow generating capacity, that is well positioned to fund (a) continued growth at existing high grade Minto and Cozamin mines, (b) the advancement of the high grade Kutcho copper project towards a production decision, and (c) accretive merger and acquisition opportunities;
- Significant downside protection through the combined forward sales positions that extend into 2011 and beyond, yet with significant upside leverage to metal prices since more than half of the production will be delivered at spot prices during that period, before accounting for proposed production expansions (which would increase exposure to spot prices);
- A combined management team with complementary experience and a proven track record of building and profitably operating mines to create shareholder wealth, supported by a seasoned and experienced board of directors;
- Enhanced market exposure for Sherwood’s shareholders through access to Capstone’s TSX listing and increased weighting in the TSX composite index.
Sherwood and Capstone believe that their shareholders will benefit from the tax-effective combination of the two companies and the creation of a significantly enhanced business platform.
The special meeting of Sherwood’s shareholders will be held in the offices of Sherwood’s counsel, Dumoulin Black, on the 10th floor of 595 Howe Street, Vancouver BC at 10:00 AM on November 14, 2008. Additional information will be provided in the information circular to be mailed to Sherwood’s shareholders in October 2008.
Capstone is a Canadian based mining company currently operating the 100% owned Cozamin copper-silver-lead-zinc mine located in Zacatecas State, Mexico. The Cozamin Mine produced 6.7 million pounds of copper at a total cash cost of US$0.90 per pound in the three months ended June 30, 2008. Capstone has approximately 80.3 million shares outstanding and is well financed with no bank debt, and approximately US$100 million in working capital and marketable securities as of June 30, 2008, based on current share prices.
Additional information on Capstone Mining and its Cozamin Mine is available on Capstone’s website at http://www.capstonemining.com.
Sherwood Copper’s objective is the profitable production of base and precious metals from high grade, open pit mines in Canada. Sherwood’s first operating mine, the high grade Minto copper-gold mine in Yukon, Canada, was built on budget and ahead of schedule. The Minto Mine is one of the highest-grade open pit copper-gold mines in the world, and is a low cost producer. Aggressive exploration on the Minto property has yielded significant success, providing Sherwood the opportunity to ‘grow from within’ by expanding the resource and reserve base, potentially leading to further production increases. To further accelerate its production growth, Sherwood intends to pursue merger & acquisition opportunities that fit its business model and, in May 2008, Sherwood acquired 100% ownership in Western Keltic Mines (now Kutcho Copper Corp.), owner of the high-grade Kutcho copper-zinc-gold-silver deposit in northwestern British Columbia. Sherwood expects to lever off its successful development of the Minto Mine and rapidly advance the Kutcho project to a production decision. Sherwood has also agreed to combine with Capstone Mining, subject to requisite shareholder and regulatory approvals, creating a new low cost, growth oriented copper producer with two high grade mines and a strong balance sheet.
Additional information on Sherwood and its Minto Mine can be obtained on Sherwood’s website at http://www.sherwoodcopper.com.
Monday, August 25, 2008
The news on Copper Mining Market Condition: "Market Conditions Push Down Anvil Price"
Israeli diamond tycoon Dan Gertler will acquire a 25 per cent stake in Toronto Stock Exchange-listed copper and silver producer Anvil Mining for nearly 20 per cent less than originally planned, thanks to deterioration in market conditions, the WA-based firm has announced.
Mr Gertler’s Catala Global had signed a deal in July to acquire 23.7 million Anvil shares at $C12.50 each – committing to spend $C296.3 million, worth about $305 million at the time.
Instead, Anvil announced today that “due to the significant deterioration in market conditions for resource companies since the original announcement of the placement”, it would reduce the issue price to $C10 per share – making the stake worth $C237 million ($261.5 million).
Proceeds from the placement, which represents a premium of 39 per cent to the company’s Friday closing price of $C7.21 on the TSX, will be used for work on the firm’s projects in the Democratic Republic of Congo.
The placement remains subject to regulatory and shareholder approval, with a meeting expected to be held next month.
The money will fund Anvil’s expansion of its Kinsevere copper mine and Kulu copper tailings operations in the Katanga province of the DRC, as well as providing working capital.
Anvil shares closed at $7.60, down 40¢ or five per cent.
ANDREW HOBBS
Source: http://www.thewest.com.au/
Mr Gertler’s Catala Global had signed a deal in July to acquire 23.7 million Anvil shares at $C12.50 each – committing to spend $C296.3 million, worth about $305 million at the time.
Instead, Anvil announced today that “due to the significant deterioration in market conditions for resource companies since the original announcement of the placement”, it would reduce the issue price to $C10 per share – making the stake worth $C237 million ($261.5 million).
Proceeds from the placement, which represents a premium of 39 per cent to the company’s Friday closing price of $C7.21 on the TSX, will be used for work on the firm’s projects in the Democratic Republic of Congo.
The placement remains subject to regulatory and shareholder approval, with a meeting expected to be held next month.
The money will fund Anvil’s expansion of its Kinsevere copper mine and Kulu copper tailings operations in the Katanga province of the DRC, as well as providing working capital.
Anvil shares closed at $7.60, down 40¢ or five per cent.
ANDREW HOBBS
Source: http://www.thewest.com.au/
Copper mining News: "Lundin Mining names new chief financial officer"
Ted Mayers to be new chief financial officer of Lundin Mining, will be based in Toronto
NEW YORK (AP) -- Lundin Mining Corp., which produces copper, nickel, lead and zinc, said Monday Chief Financial Officer Anders Haker is leaving the company and will be replaced by Ted Mayers, effective Sept. 2.
Mayers, who previously served as chief financial officer of LionOre Mining International Ltd., will be based in Toronto. Three former LionOre executives also will join the finance team.
Neither Haker, who has been based in Stockholm, nor the company's financial reporting team currently based in Vancouver, will be relocating to Toronto.
Shares of Lundin Mining fell 15 cents, or 3 percent, to $4.92 in late morning trading.
Source: http://biz.yahoo.com/ap/080825/lundin_mining_personnel.html?.v=2
NEW YORK (AP) -- Lundin Mining Corp., which produces copper, nickel, lead and zinc, said Monday Chief Financial Officer Anders Haker is leaving the company and will be replaced by Ted Mayers, effective Sept. 2.
Mayers, who previously served as chief financial officer of LionOre Mining International Ltd., will be based in Toronto. Three former LionOre executives also will join the finance team.
Neither Haker, who has been based in Stockholm, nor the company's financial reporting team currently based in Vancouver, will be relocating to Toronto.
Shares of Lundin Mining fell 15 cents, or 3 percent, to $4.92 in late morning trading.
Source: http://biz.yahoo.com/ap/080825/lundin_mining_personnel.html?.v=2
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