SPAIN - INMET MINING of Toronto is acquiring a 70% interest in the Las Cruces copper project in this country. Inmet will issue 5.6 million common shares to MK RESOURCES for the share of the company that owns the project. Inmet will also assume its prorated share of development costs from April 1, 2005.
The Las Cruces project is a high-grade copper deposit, located approximately 20 km northwest of Seville. Mineral reserves are estimated at 15.98 million tonnes grading 6.62% Cu.
The project is currently in the final stages of construction permitting, surface land acquisition and is about to commence basic engineering. The deposit will be mined by open pit methods, and copper cathode will be produced on site applying Outokumpu atmospheric leaching and conventional solvent extraction electrowinning (SX/EW) technology.
The construction costs are estimated to be approximately 290 million Euros, excluding interest, reclamation, bonding requirements and other financing costs. It is expected that the project will receive subsidies amounting to approximately 53 million Euros from the central and regional governments in Spain, subject to the completion of construction activities.
Las Cruces is expected to commence copper production in 2008 and is expected to produce approximately 66,000 tonnes of cathode copper per year at a cash operating cost of approximately US$0.42 per pound of copper, based on current exchange rates, for 15 years.
Further details of the transaction are posted at www.InmetMining.com.