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Gold/Mining/Energy : Tenke Mining Corp (TNK) -- Ignore unavailable to you. Want to Upgrade?

To: Steven Lolas who wrote (312)	12/16/1998 10:46:00 AM
From: Tomas	Respond to of 486

Tenke Reaches Agreement With BHP Copper VANCOUVER, BRITISH COLUMBIA--Tenke Mining Corp. (''Tenke'') is pleased to announce that it has entered into an agreement with BHP Copper (''BHP'') whereby BHP has acquired an option to participate with Tenke in the development of the Tenke Fungurume copper/c obalt project in exchange for funding certain project pre-development expenditures. The option, if exercised, will entitle BHP to acquire a majority portion of Tenke's stake in the project in exchange for providing certain development funding. This agreement is subject to regulatory and other approvals. ON BEHALF OF THE BOARD Adolf H. Lundin, President

To: Steven Lolas who wrote (312)	12/19/1998 11:47:00 PM
From: Tomas	Respond to of 486

Tenke eyes Congo partnership with BHP Copper-Cobalt Find: Would exchange stake in huge project to gain financing By JOHN SCHREINER The Financial Post, December 17 Adolf Lundin's Tenke Mining Corp., whose shares recently touched a 52-week low of 26c, said yesterday it has struck a deal that could see Australian mining giant Broken Hill Pty. Co.'s BHP Copper unit acquire control of Tenke's huge copper-cobalt project in the Democratic Republic of Congo, formerly Zaire. A Swedish financier based in Geneva, Mr. Lundin negotiated an agreement in 1996 with the Congo's state mining company to get 55% of one of Africa's largest undeveloped copper-cobalt properties for $250-million (US), with most of that to be paid in 2003 from mine production. The state retains the remaining interest. Called Tenke Fungurume and explored since the 1970s, the project now has reserves and resources totalling 500 million tonnes containing high grade copper and cobalt mineralization. The projected capital cost of developing a mine is $475-million (US) and, according to Tenke, the mine will be one of the lowest-cost copper producers in the world, at a cost of only 6c (US) a pound. With about $5-million in its treasury, Tenke's ability to arrange financing for the project on its own has been damaged by the civil war in the Congo, even though Tenke spokeswoman Sophia Shane said that conditions have been peaceful in Katanga province where the project is located. "We haven't been impacted at all," she said. Mr. Lundin has been adept at handling the politics of the country. Tenke's initial deal was signed while Mobutu Sese Seko was still president, but as the country was beginning to invite foreign investors back, Mobutu, Zaire's dictator for 31 years, was overthrown in 1997 by Laurent Kabila. While the Kabila government subsequently reopened contracts that had been signed with several other North American juniors, Tenke's control of its project has been honoured. In July, Tenke announced it had decided to look for a major company as a partner in developing the Katanga concessions. "Tenke is a world-class project and it is important that we take time to ensure that we have the right partners," said Philip Wright, who was then the company's president. "This is perhaps the most important decision we will make." Mr. Lundin, who replaced Mr. Wright as president in September, said in a terse statement yesterday that BHP Copper has an option "to acquire a majority portion of Tenke's stake in the project in exchange for providing certain development funding." Ms. Shane, who handles Tenke's investor relations in Vancouver, said she was unable to provide any details on what percentage BHP would get or how much BHP would have to commit. "Given the scale of this project, it makes sense for us to partner up with a major," she said. The announcement triggered heavy volume in Tenke shares, which have had a 52-week range of $3.60 to 26c, and closed yesterday at 36c. canoe.ca