First Quantum Completes Acquisition Of 7.5 Billion Pound
2001-08-21 11:31 (New York)
Kansanshi Copper Deposit From Phelps Dodge
NEWS RELEASE TRANSMITTED BY CCN NEWSWIRE
FOR: FIRST QUANTUM MINERALS LTD.
Listed in S&P's, 12g3-2b-82-4461; Sedar Profile #00006237
TSE SYMBOL: FM
LSE SYMBOL: FQM
OTC Bulletin Board SYMBOL: FQVLF
AUGUST 21, 2001
First Quantum Completes Acquisition Of 7.5 Billion Pound
Kansanshi Copper Deposit From Phelps Dodge
VANCOUVER, BRITISH COLUMBIA--First Quantum Minerals Ltd. (TSE
Symbol "FM", LSE Symbol "FQM", OTCBB Symbol "FQVLF") is pleased to
announce the signing of a Definitive Purchase and Sale Agreement
("Agreement") with Cyprus Amax Minerals Company ("Cyprus Amax"), a
wholly owned subsidiary of Phelps Dodge Corporation ("Phelps
Dodge"), for the acquisition of Phelps Dodge's entitlement to an
80% beneficial interest in the Kansanshi Copper-Gold Deposit
("Kansanshi") located in Zambia. The Kansanshi Copper-Gold
deposit hosts an open pit mineral resource of 267 million tonnes
grading 1.28% copper and 0.16 gram per tonne gold containing 3.4
million tonnes (7.5 billion pounds) of copper and 1.4 million
ounces of gold. Zambian Consolidated Copper Mines ("ZCCM") will
hold the remaining 20% interest in Kansanshi.
Under the terms of the Agreement, First Quantum has acquired 100%
of Cyprus Amax Kansanshi Holdings Limited ("Holdings"), a wholly
owned subsidiary of Cyprus Amax which holds the entitlement to the
80% interest in Cyprus Amax Kansanshi Plc, the Zambian company
which owns Kansanshi. In consideration, First Quantum paid US
$50,000 for all of the issued shares of Holdings and assumed a
total debt outstanding to Cyprus Amax of US $27.45 million which
was reduced by US $2.45 million cash and the issue of 1.4 million
First Quantum common shares on signing. In addition, thirty days
after the commencement of commercial production at Kansanshi,
First Quantum will repay Cyprus Amax an additional US $25 million
less an amount equal to the market value at that time of the 1.4
million First Quantum common shares.
First Quantum will immediately commence work on a bankable
feasibility study which is planned to be completed within twelve
(12) months. Subject to the study demonstrating the Kansanshi
project to be bankable, it is anticipated that commercial
production will be able to commence within thirty (30) months
after its completion.
Reiterating earlier comments, Philip Pascall, Chairman & CEO
commented, "The Kansanshi copper deposit is a world class asset.
The development of a mine will use our Zambian expertise and
exploit our existing Copperbelt operations and facilities. With
the development of Kansanshi, First Quantum will expand its
important role in the re-emergence of the Zambian Copperbelt as a
leading world producer of copper. The increasing momentum in the
development of Kansanshi is directly attributable to the
Government of the Republic of Zambia's initiative of supporting
privatization and new investment in the copper industry"
On Behalf of the Board of Directors
of First Quantum Minerals Ltd.
G. Clive Newall
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. First Quantum Minerals Ltd. |
