Mitsubishi and Copper Mountain Agree To Extended MOU
Friday, May 1st, 2009
Copper Mountain Mining Corporation reports that the Company continues to advance the Copper Mountain Project towards production with the assistance of Mitsubishi Materials Corporation. Discussions between Mitsubishi and the Company continue toward finalizing agreements and arranging project financing.
Mitsubishi and the Company have agreed to extend the MOU up to the end of July 2009 to provide the necessary time for the parties to finalize the necessary agreements as outlined in the MOU and prepare to arrange project financing. Improvements to the project with the increased resource resulting from the successful 2008 drill program, is expected to offset financing hurdles in the current adverse economic climate. Mitsubishi has reconfirmed its support for the project by extending the $28.75 million line of credit to November 30, 2009.
Site activities continue to be funded with the $28.75 million line of credit provided by Mitsubishi. To date, the Company has drawn approximately 75% of the line of credit to fund long lead equipment items, and support ongoing project activities to maintain the target production schedule for mid 2011. Detailed engineering and site geotechnical excavations for the concentrator are progressing on schedule and below budget. The office and warehouse complex is now fully functional with power, heat, water, telephones, internet, and sewerage. The Company currently has approximately 16 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.