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Gold/Mining/Energy : Precious and Base Metal Investing -- Ignore unavailable to you. Want to Upgrade?

To: Claude Cormier who wrote (1107)	1/9/2002 5:16:36 PM
From: russwinter	Read Replies (2) \| Respond to of 39344

Iamgold: Now I remember why I like these guys so much. New money for gold plan on corporate cash discretionary accounts. Good idea for NEM, et al. biz.yahoo.com

To: Claude Cormier who wrote (1107)	1/9/2002 8:32:29 PM
From: TrueScouse	Read Replies (1) \| Respond to of 39344

Claude: I know you haven't been following EZM for a while, but this Investor letter is interesting.... EZM now has effective control of Aljustrel. And I'm sure Russ will be pleased to see RCF involved :^) Regards, Howy ===================== From: EuroZinc Mining Corp. (CDNX - EZM) eurozinc.com mailto:info@eurozinc.com --------------------------------------------------------------------------- Re: Investor News Letter - Thursday, January 03, 2002 COMPANY PURCHASES CONTROLLING INTEREST IN ALJUSTREL... ====================================================== Dear Investors: I would like to take this opportunity to wish everyone a very Happy New Year and to bring to your attention the significance of EuroZinc's recent announcement that title and control of the Aljustrel project has been secured. This is the most significant development for EuroZinc since the company first became involved in the Aljustrel project. The agreement signed with the Portuguese government owned mining company, EDM, on December 20, 2001, replaces the previous agreement with EDM, which was effectively an option agreement that called for EuroZinc to complete specific tasks by specific dates in order to retain it option to acquire the project. Under the terms of the new agreement, however, for a relatively small down payment of approximately US$ 1.25 million, the company now is effectively in an ownership position of the Aljustrel mineral deposits and mining facility, and as a result has control over its destiny. Aljustrel currently has 10 years of reserves in two separate deposits with the potential to significantly increase the reserve numbers. The mining facility is a large, modern one that includes significant assets, which had a capital cost of approximately US$ 160 million almost ten years ago. The assets include a modern mill, underground development, offices, machine shops, stocked warehouses, and a dedicated port facility (please see our website for full details at www.eurozinc.com). The operating company, Pirites Alentejanas, S.A., in which EuroZinc expects to own in excess of 99% of the shares, also holds all of the required operating permits for the mine, as well as large tax loss carry forwards, and has negotiated a grant, interest-free loan, and tax incentive package valued at US$ 32 million as a component of the production financing. It is very significant to note that all additional payments required under the terms of the new agreement will come from future production, commencing a minimum of twelve months after the start of commercial production from the Feitais deposit. As a result of the new agreement, the internal rate of return of the project to EuroZinc has more than doubled. We have been fortunate to have the support of the Resource Capital Fund, which has agreed to supply an additional US$ 2 million in funding to make the down payment for Aljustrel and to provide additional working capital. The funding will take the form of a convertible term loan facility with a maturity date of December 31, 2003. The purchase of Aljustrel has put EuroZinc in the enviable position of being able to bring into production in a relatively short period of time, and for a relatively small capital cost, an economic base metal mine with a long mine life, as soon as higher metal prices permit. As I discussed in my last letter, we can expect to see metal prices return to their long-term averages or better as the world economy begins to recover from the current recession and mines either curtail production or close permanently (over 300,000 tonnes of zinc production will be shut down in 2002). With that improvement in metal prices we should also see increased market interest in near term metal producers such as EuroZinc, which is now so well positioned to become a mid-tier mining company. 2001 was a difficult year for all investors, but I am confident that 2002 will be significantly better, particularly for those contrarian investors who have invested in the mining and metals sector. Stay tuned for continued positive developments through the coming year as EuroZinc continues to advance the Aljustrel project toward production. Sincerely, EUROZINC MINING CORPORATION "M. Norman Anderson" Chairman & CEO For further information please contact Troy Winsor in Investor Relations at (888) 225-9662 or (604) 466-8934. This letter includes forward-looking statements that involve a number of risks and uncertainties, the outcome of which could materially and/or adversely affect future results. These include risks and uncertainties that could affect EuroZinc's development of the Aljustrel project such as regulatory factors, metal prices, availability of financing and competitive factors. Achievement of the objectives set forth in this letter is subject to these risks and uncertainties. The Corporation's results, or measures it adopts, could differ materially from those indicated or underlying these statements, or could have an impact on the realization of financial projections. ========================================================== Copyright (c) 2001 EUROZINC MINING CORP. (CDNX - EZM) All rights reserved. For more information visit our website at eurozinc.com or send mailto:info@eurozinc.com Message sent on Tue Jan 8, 2002 at 10:08:35 AM Pacific Time ==========================================================