Closed at C$4.40, up 10 %!!! News release:
Cheers
Dan
Subj: first Quantum Minerals Ltd.
Date: 2/18/00 4:20:47 PM Central Standard Time
From: biversen@first-quantum.com (Bill Iversen)
To: danpaloyan@aol.com
FIRST QUANTUM / GLENCORE CONSORTIUM
EXECUTE PURCHASE AGREEMENT WITH ZCCM
GLENCORE TO FINANCE ACQUISITION AND
PROVIDE UP TO US $40 MILLION WORKING CAPITAL FACILITY
First Quantum Minerals Ltd. (TSE & CDNX Symbol "FM") is pleased to announce that a consortium comprising First Quantum Minerals and Glencore International ("the Consortium") has executed a Purchase Agreement with the Government of the Republic of Zambia and Zambia Consolidated Copper Mines Limited ("ZCCM"). The Consortium will purchase a 90% interest in a new company, Mopani Copper Mines Plc ("Mopani") which will acquire the assets of ZCCM's Mufulira Division and the Nkana Mines, Concentrator and Cobalt Plant. ZCCM will retain a 5% free and 5% repayable carried interest in Mopani. Within the Consortium, Glencore will have a 51% voting interest and First Quantum a 49% voting interest. A 5% non-voting interest in the Consortium has been reserved for a Swiss Group who facilitated in the acquisition.
Under the purchase agreement, ZCCM will receive a cash consideration of US $20 million upon closing and deferred payments of US $23 million in five equal annual installments starting in January, 2003. ZCCM will also be provided with a copper price participation to be calculated at 2% of the copper price over and above US $0.85 per pound, payable for five years from 2003 and capped at US $4.4 million. Mopani will commit to invest US $159 million in the Mufulira and Nkana operations over the first three years and, subject to further evaluation of the assets, make conditional investments of approximately US $343 million.
The Nkana and Mufulira Mines produced a combined total of 86,000 tonnes of copper and 1,250 tonnes of cobalt during the year ended March, 1999. Nkana hosts a resource of 323 million tonnes grading 2.21% copper and 0.10% cobalt including reserves of 76 million tonnes grading 2.26% copper and 0.14% cobalt. Mufulira hosts a resource of 71 million tonnes grading 3.10% copper including reserves of 29 million tonnes grading 3.02% copper.
Glencore To Finance Acquisition And Working Capital Facility
Glencore has agreed to provide First Quantum with a US$9.8 million acquisition loan to facilitate closing of the transaction. The acquisition loan will have a term of 13 months and carry a 0% interest rate. As consideration for providing the acquisition loan Glencore will be granted up to 1.5 million share purchase warrants. Each warrant may be convertible into one common share of First Quantum at a price of CDN $3.75 per share.
In addition, Glencore has also agreed to provide Mopani with a three year revolving US $25 million working capital facility at LIBOR plus 3% and an additional US $15 million standby working capital facility.
Private Placement Financing
In conjunction with the ZCCM transaction, First Quantum has agreed to complete a financing consisting of 550,000 Special Warrants at a price of CDN $3.75 per Special Warrant to raise proceeds of CDN $2.06 million. Each Special Warrant will be convertible into one common share of First Quantum.
Further information will be released in the near term.
On Behalf of the Board of Directors 12g3-2b-82-4461
of First Quantum Minerals Ltd. Listed in Standard and Poor's
"Clive Newall" Sedar Profile #00006237
Clive Newall
President
For further information contact: Geoff Chater, Bill Iversen or Keith Neumeyer
Suite 450-800 West Pender Street, Vancouver, British Columbia, Canada V6C 2V6
Tel: (604) 688-6577 Fax: (604) 688-3818 Toll Free: 1 (888) 688-6577 E-Mail: info@first-quantum.com
The Toronto Stock Exchange and Canadian Venture Exchange have not reviewed
and do not accept responsibility for the adequacy or accuracy of this release.
Certain of the information contained in this news release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements, including but not limited to those with respect to the prices of gold, copper and sulphuric acid, estimated future production, estimated costs of future production, the Company's hedging policy and permitting time lines, involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the actual prices of copper, gold and sulphuric acid, the factual results of current exploration, development and mining activities, changes in project parameters as plans continue to be evaluated, as well as those factors disclosed in the Company's documents filed from time to time with the British Columbia Securities Commission and the United States Securities and Exchange Commission. |
