LAMINCO ENTERS FINANCING ARRANGEMENT, MEXICAN COPPER PROJECT
RENO, NV, June 4 /CNW/ - Laminco Resources Inc.
LMR - TSE
LMRSF - NASDAQ-OTC
Laminco Resources Inc. has signed a letter of intent with a U.S.-based
private investment firm to undertake the 100 percent project financing of
Laminco's wholly owned Luz del Cobre copper deposit in Sonora, Mexico. Laminco
is developing an open pit, heap leach with an SX/EW recovery plant at the San
Antonio property.
Laminco has provided the investment firm with a confidential exclusivity
period extending to September 30, 1997, during which turnkey engineering of
the project will be commissioned, remaining due diligence respecting property
title and reserves will be conducted, and primary project financing debt will
be arranged. The private investment firm will also provide secondary
subordinated debt to the project. On completion of the title and reserve due
diligence, which is expected within six weeks, the investment firm will cause
to be paid to Laminco $US 1 million and an additional $US 1 million on
financial closing.
Laminco and the investment firm will share free cash flow after operating
costs and debt service on a 50:50 basis. Laminco indicated that cash proceeds
from the transaction would be employed in continuing the feasibility on the
San Antonio open pit and underground gold deposits.
Based on a confirmatory feasibility study completed in March 1997 by
Bateman Engineering Inc. of Tucson, Arizona, specialists in engineering of
copper projects, Laminco can produce cathode copper at an operating cost of
$US 0.494/lb. Total capital cost of the Luz del Cobre Project is estimated by
Bateman at $US 19.3 million, including $US 14.2 capital cost and $US 5.1
million for prestripping, working capital, administration and contingencies.
Current mineable ore reserves at Luz del Cobre are 10.2 million tons at an
average grade of 0.875% copper at a cutoff grade of 0.22% copper. The average
strip ratio is less than 1:1.
Laminco is an emerging growth company exploring and developing precious
and base metal properties in Latin America, including the 100 percent-owned
San Antonio Gold Project.
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For further information: Peter A. Maynes, Executive Vice-President, (702) 322-3000, fax (702) 322-2955 or E-Mail laminco(at)inetworld.com |
