Terrane Talks With Sumitomo, Mitsubishi on B.C. Mine (Update1)
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By Rob Delaney
Jan. 12 (Bloomberg) -- Terrane Metals Corp., developing the Mt. Milligan mine in British Columbia, is in talks with Japan’s Mitsubishi Corp., Sumitomo Corp. and other companies to help finance the C$900 million ($866 million) project.
Terrane plans to start construction at the copper and gold mine in July, and will need to complete financing arrangements by the end of 2010, Chief Executive Robert Pease said today in an interview in New York. The company wants to sell part of Mt. Milligan to raise more capital, and will give the buyer rights to metal produced there.
Goldcorp Inc., which owns convertible preference shares in Terrane, allowed an option to partner on Mt. Milligan to expire, Terrane said in a statement on Jan. 8.
“The best way to continue participating in the bright future of this project is through our equity interest in Terrane,” Goldcorp Chief Executive Officer Chuck Jeannes said in the statement.
Finding a new partner “is our intention now, and Goldcorp knows that,” Pease said. “Likely partners that we’re pursuing are the metal smelting and refining companies.”
Terrane has also talked with Sumitomo Metal Mining Co., a metal producing unit of Mitsubishi and two South Korean companies, Pease said. He declined to name the Korean companies.
The Mt. Milligan project will produce 89 million pounds of copper and 262,100 ounces of gold annually over a 22-year mine life, Pease said in a presentation at the Emerging Miners CEO Conference in New York.
Terrane rose 4 cents, or 3.4 percent, to C$1.23 at 12:42 p.m. in Toronto Stock Exchange trading. The shares increased almost 10-fold last year.
To contact the reporter on this story: Rob Delaney in Toronto at robdelaney@bloomberg.net.
Last Updated: January 12, 2010 12:48 EST
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