Update, from a statement of material change filed by Princeton:
Date of Material Change
November 18, 1997
Item 3. Press Release
A press release announcing the material change was issued by Princeton in Vancouver, B.C. on November 18, 1997.
Item 4. Summary of Material Change
On November 18, 1997 Princeton's 60% owned subsidiary, Huckleberry Mines Ltd., ("HML") signed a U.S. $10 million loan facility with Marubeni Corporation, a partner in the Huckleberry mine. The loan is repayable over two years and bears interest at LIBOR plus 1.2%. These funds will be used for working capital purposes and to fund the project cost increase of 3.7%.
Item 5. Full Description of Material Change
The Huckleberry open pit copper/molybdenum mine located in west-central British Columbia is owned 60% by Princeton and 40% by a consortium of Japanese companies including Marubeni Corporation, Mitsubishi Material Corporation, Furukawa Co., Ltd. and Dowa Mining Co., Ltd.
Princeton acquired the Huckleberry mine in June 1995 and then formed HML as a wholly owned subsidiary to develop the Huckleberry project. A year later, following receipt of the government project development approvals, a production decision was made and a strategic alliance was finalized with the Japan Group of companies. Construction began in the first half of 1996. Stockpiling of ore was underway by July, 1997 and the primary crusher commenced operation in August of this year. Mill production began in mid September slightly ahead of the original project schedule target date. On October 1, 1997 the Huckleberry mine was officially opened. Commercial production was achieved in October and the first shipment of concentrate was dispatched to Japan from the Port of Stewart, B.C. on November 1st.
The capital cost of the project was $141.5 million or 3.7% over the original $136.5 million budget. Increased costs were primarily due to higher tailing dam construction and higher than expected civil work costs. To fund the project cost increase of 3.7% and for working capital purposes, HML negotiated a U.S. $10 million loan facility with Marubeni Corporation in addition to the partners injecting $4.5 million of equity. The loan was signed on November 18, 1997 and is repayable over two years, bearing interest at LIBOR plus 1.2%. |
