Old news but of interest to me. Just found it.
Latin American Copper plc - Acquisition of 13% of Western Goldfields Inc
Latin American Copper plc Newstrack Announcements 13/05/2005
Acquisition of 13% of Western Goldfields Inc
· Producing gold mining company, Mesquite Mine, CA, USA
· Approximately 20,000 ounces gold production expected in 2005 from pad
releaching*
· Mining operations currently fully permitted for 1.85 million ounces gold
· 90,000 - 125,000 ounces annual gold production projected by the early of
2007, following recommencement of mining*
*Western Goldfields estimates
Latin American Copper plc ("LAT" or the "Company") is pleased to announce the
acquisition of 5,000,000 common shares of Western Goldfields Inc ('WGI') from
Resourceworks plc ('Resourceworks'). This represents 13% of the issued share
capital of WGI. LAT has also acquired share purchase warrants to subscribe for
2,500,000 additional common shares of WGI at a price of US$1.00 until expiry on
30th October 2005. Resourceworks has been issued 20,000,000 ordinary shares of
the Company at a deemed price of 5p per LAT share, in consideration for the
acquisition of the WGI shares.
WGI is a public company which trades on the USA Bulletin Board (OTC:BB) and has
recently filed for trading on the Toronto Stock Exchange's Venture Exchange
('TSX-V').
WGI is focused on the redevelopment of the Mesquite gold mine in California,
USA, which it acquired from the major US mining company Newmont Mining Inc in
2003. During 2004, WGI commissioned an Independent Technical Report by Mine
Development Associates ('MDA'), Reno, Nevada, to review the potential of the
deposit. Subject to a detailed feasibility study which is due for completion by
early 2006, WGI will recommence full scale mining operations at Mesquite.
Significantly, mining operations are currently fully permitted for exploitation
of 1.85 million ounces of gold (average grade 0.62 g/t gold). Using a database
compiled from 6,200 drill holes, 898,000 ounces of gold have been classed as
reserves, based on an open pit mine modelled at US$325 gold by Newmont Mining
Inc, with a further 950,000 ounces of gold classed as measured and indicated
resource modelled at US$400. Work carried out by WGI in 2004 has confirmed the
potential to increase the size and grade of this resource.
WGI believes that the mine may ultimately yield between 90,000 to 125,000 ounces
gold per annum, with total cash costs estimated to be below US$250/oz.
Prior to full scale mining recommencing, WGI expects to produce approximately
20,000oz of gold in 2005 by secondary leaching of previously mined material.
Commenting on the acquisition Tony Williams, Chairman, of LAT said:
'The acquisition of the interest in Western Goldfields demonstrates the
Company's commitment to our new strategy of taking positions in emerging mining
companies as well as developing our own project portfolio.'
Resourceworks shareholding in LAT
Following the issue of the shares referred to in this news release,
Resourceworks holding in LAT will have increased to 40,000,000 shares,
representing 26.14% of issued share capital.
PRESS CONTACTS AND FURTHER INFORMATION:
Additional information can be found on our website: www.latinamericancopper.com
Sally Schofield, Director, Latin American Copper plc
Phone +44 (0) 207 529 7512, Fax +44 (0) 207 491 2244 Email: info@lacopper.com
Laurence Read/Amanda Harris, Conduit PR
Phone +44 (0) 207 618 8707, Mob : +44 (0) 7979 955 923
ofex.com
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