Thompson Creek signs option agreement to acquire up to 75% of high-grade molybdenum deposit
19 Agosto 2008 - 11:05PM
PR Newswire (US)
NYSE: TC TSX: TCM, TCM.WT Frankfurt: A6R TORONTO, Aug. 19
/PRNewswire-FirstCall/ -- Thompson Creek Metals Company Inc. (the
"Company"), one of the world's largest, publicly traded, pure
molybdenum producers, today announced that its wholly owned
subsidiary, Thompson Creek Metals Company USA ("TCUSA"), has signed
an Option Agreement with U.S. Energy Corp. ("USE") that gives TCUSA
an option to acquire up to 75% in USE's Lucky Jack molybdenum
property in Gunnison County, Colorado. Under the Option Agreement,
TCUSA has made a $500,000 payment to USE upon signing. Unless the
Agreement is sooner terminated, TCUSA will pay $1 million annually
to USE for six years beginning January 1, 2009 and ending January
1, 2014. TCUSA as the project manager will direct additional funds
towards the assessment, environmental permitting, exploration and
development of the property. TCUSA can earn the right to acquire a
15% interest in the project by spending a total of $15 million on
the project, including the direct payments to USE, by June 30,
2011. TCUSA can exercise this right for up to 36 months after
spending such amount. To earn a 50% interest, TCUSA must spend a
cumulative total of $50 million by July 31, 2018. After obtaining a
50% interest, TCUSA may elect to form a 50-50 joint venture with
USE for further development, or may choose to raise its interest up
to 75 percent by incurring an additional $350 million in project
expenditures, for a cumulative total $400 million in expenditures
and payments. TCUSA has the right to withdraw from the project and
associated payment commitments at any time for any reason. TCUSA
will not assume any existing liabilities on or related to the
property until it exercises its right to acquire an ownership
interest in the property. "We are extremely pleased to have the
opportunity to become involved in a project of such high quality,"
said Kevin Loughrey, Chairman and Chief Executive Officer of
Thompson Creek. "The Lucky Jack Project is one of the largest,
high-grade, undeveloped molybdenum deposits in the world, with a
historical mineral resource in excess of 700 million pounds of
molybdenum. The transaction we have entered into with U.S. Energy
allows us to earn our way into property ownership by spending money
to develop the project over a period up to 10 years, although we
hope to advance the project to completion more quickly. The
transaction is also particularly appropriate for Thompson Creek at
this time because it gives the Company access to a world class ore
body without the Company issuing additional shares, which currently
are undervalued. "As with any project of this magnitude, there are
challenges. However, we are confident we can develop this deposit
in a manner that is environmentally sound, a boon to the local
community, and positive for our shareholders. Projects such as this
represent hundreds of long-term jobs, millions of dollars of tax
revenues, and significant opportunities for the local and state
economies. Gunnison County is fortunate to have an asset of this
quality within its borders. "Naturally, we will review the details
of the project and take a fresh look at all aspects of the
previously planned development, and we will seek the input of the
residents of the County. In addition, we will work, as we always
do, with local, state, and federal officials and agencies to ensure
that the project is developed in accordance with all applicable
laws and regulations. Fortunately our Company has the experience
and resources to develop and ultimately reclaim the property in a
professional, efficient, and environmentally sound manner," Mr.
Loughrey said. Summary History of Lucky Jack Project The Lucky Jack
molybdenum property is one of the largest and highest grade
undeveloped primary molybdenum deposits in the world. The deposit
is located beneath the surface of Mount Emmons, which is in
Gunnison County three miles northwest of Crested Butte, Colorado.
The project area is comprised of approximately 5,400 acres of
patented and unpatented mining claims and millsite claims. The
property is currently held and controlled (100%) by U.S. Energy
Corp. (NASDAQ Capital Market: USEG). Exploration activity conducted
in the 1970s led to the discovery of the deposit (then known as the
Mount Emmons deposit). By 1983, an estimated $150 million had
been reportedly spent on the property acquisition, water rights,
exploration, ore body delineation, mine planning, metallurgical
testing and other activities involving the mineral deposit. The ore
body has been delineated by a total of approximately 190,770 feet
of core drilling on the property. A 1998 mineral resource estimate
based on the concept of underground mining with a 6,000 tons per
day mill was summarized in an April 10, 2007 Behre Dolbear &
Company Inc. technical report filed on Sedar by Kobex Resources
Ltd. It showed a historical mineral resource of 166,654,000 tons
grading 0.38% MoS(2) (0.228% Mo) at a cutoff grade of 0.2% MoS(2)
(0.12% Mo). This resource contains 760 million pounds of molybdenum
(Mo). The historical estimates are the most recent estimates
available, and Thompson Creek believes them to be relevant.
However, the estimates should not necessarily be relied upon.
Thompson Creek has not done the work necessary to have the
historical estimates verified by a qualified person. The historical
estimates were prepared under CIM standards in 1998, however they
do not meet the current CIM Definition Standards on Mineral
Resources and Mineral Reserves adopted in 2005 and the historical
resource classification has also not been further categorized into
measured and indicated mineral resources. Thompson Creek is not
treating the historical estimates as a current mineral resource
estimate under National Instrument 43-101. Ken Collison, P.Eng.,
Chief Operating Officer, Thompson Creek Metals Company Inc., who is
a qualified person under National Instrument 43-101, has reviewed
and approved the contents of this news release. About Thompson
Creek Metals Company Inc. Thompson Creek Metals Company Inc. is one
of the largest publicly traded, pure molybdenum producers in the
world. The Company owns the Thompson Creek open-pit molybdenum mine
and mill in Idaho, a metallurgical roasting facility in Langeloth,
Pennsylvania and a 75% share of the Endako open-pit mine, mill and
roasting facility in northern British Columbia. Thompson Creek is
also developing the Davidson Deposit, a high-grade underground
molybdenum project near Smithers, B.C. The Company has
approximately 800 employees. Its principal executive office is in
Denver, Colorado, and it has other executive offices in Toronto,
Ontario and Vancouver, British Columbia. More information is
available at http://www.thompsoncreekmetals.com/. Cautionary Note
Regarding Forward-Looking Statements
---------------------------------------------------- This news
release contains "forward-looking information" within the meaning
of the United States Private Securities Litigation Reform Act of
1995 and applicable Canadian securities legislation which may
include, but is not limited to, statements with respect to the
timing and amount of estimated future production. Often, but not
always, forward-looking statements can be identified by the use of
words such as "plans", "expects", "is expected", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates", or
"believes" or variations (including negative variations) of such
words and phrases, or state that certain actions, events or results
"may", "could", "would", "might" or "will" be taken, occur or be
achieved. Forward-looking statements involve known and unknown
risks, uncertainties and other factors which may cause the actual
results, performance or achievements of Thompson Creek and/or its
subsidiaries to be materially different from any future results,
performance or achievements expressed or implied by the
forward-looking statements. Such factors include those factors
discussed in the section entitled "Risk Factors" in Thompson
Creek's current annual information form which is available on SEDAR
at http://www.sedar.com/ and is incorporated in its Annual Report
on Form 40-F filed with the United States Securities and Exchange
Commission which is available at http://www.sec.gov/. Although
Thompson Creek has attempted to identify important factors that
could cause actual actions, events or results to differ materially
from those described in forward-looking statements, there may be
other factors that cause actions, events or results to differ from
those anticipated, estimated or intended. Forward-looking
statements contained herein are made as of the date of this news
release and Thompson Creek does not undertake to update any such
forward-looking statements, except in accordance with applicable
securities laws. There can be no assurance that forward-looking
statements will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such
statements. Accordingly, readers are cautioned not to place undue
reliance on forward-looking statements. DATASOURCE: Thompson Creek
Metals Company Inc. CONTACT: Wayne Cheveldayoff, Director of
Investor Relations, Thompson Creek Metals Company Inc., Tel: (416)
860-1438, Toll free: 1-800-827-0992, ; Dan Symons, Renmark
Financial Communications Inc., Tel.: (514) 939-3989,
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