Chile Mining Technologies Provides Update for the Second Quarter of Fiscal 2011
December 06 2010 - 3:37PM
Business Wire
Chile Mining Technologies, Inc. (OTCBB: LVEN) (“CMT”),
today provided the following business update for the second quarter
of fiscal 2011, ended September 30, 2010.
During the second quarter, CMT continued to make progress toward
its overall business plan while working through several near-term
challenges. As the Company explained last quarter, management
recognized additional opportunities with the Ana Maria plant and
chose to take the facility offline in May 2010 in order to increase
the facility’s overall capacity by 50%. The facility has resumed
operations and was producing copper by September 2010. Management
expects the Ana Maria facility to be producing at capacity in the
fourth fiscal quarter of 2011 (the quarter ending March 31,
2011).
During the September quarter, CMT also neared completion of its
second production facility, Santa Filomena, located in Salamanca,
Chile. Santa Filomena will begin producing copper in January of
2011, and management expects the facility to reach full production
capacity by the fourth fiscal quarter of 2011 (the quarter ending
March 31, 2011). In addition, management expects that both the Ana
Maria and Santa Filomena plants will be generating positive cash
flows during the fourth fiscal quarter of 2011.
A Registration Statement on Form S-1 was filed with the U.S.
Securities and Exchange Commission (the “Commission”) on July 16,
2010, and amended thereafter on October 6, 2010, with respect to
the securities sold in the Company’s May 12, 2010 private
placement. The Company is currently addressing comments from the
Commission’s staff and anticipates filing a second amendment by the
end of the year. The Company also continues to make progress toward
its Canadian listing and is working closely with its legal and
financial advisors and the TSX toward this goal.
In November 2010, CMT signed 10 year lease agreements with
Minera San Carlos and Minera La Pascua, which are adjoining
properties in the Arica region of Chile. CMT will be responsible
for all costs of mining and the production of copper at these
properties and will remit 10% of all ore proceeds back to Minera
San Carlos and Minera La Pascua. According to the agreements, these
properties are expected to contain a minimum level of resources to
guarantee a useful life of at least ten years to CMT.
CMT management is approaching these agreements in a three step
process. First, the Company performed internal studies to verify
the grades of copper at these properties will provide adequate
value, which resulted in the signing of the agreements. During the
second phase, beginning in January 2011, CMT expects to generate
positive cash flow by mining and transporting mineral for sale
through a 3rd party processor. Finally, the cash flows from the
sale of copper at these two properties will allow CMT to build a
MINI plant in this region in 2011, which will result in additional
cost savings and profitability throughout the life of this
project.
About Chile Mining Technologies, Inc.
CMT is a mineral extraction company based in the Republic of
Chile, with copper as its principal “pay metal.” The Company has
refined the electrowin process in a way that permits it to be used
at relatively small mine and/or tailings sites. By utilizing
Minimum Intrusion Non-traditional Input plants (“MINI plants”), CMT
is able to build scalable, less expensive plants closer to source
material deposits, and operate where it is not economical for
larger open-pit mining companies to operate. As a result, CMT is
able to reduce costs and operate profitably with smaller
deposits.
Forward-Looking Statements
This press release contains statements that are forward-looking
in nature, including statements regarding the Company's results of
operations. These statements are based on current expectations on
the date of this press release and involve a number of risks and
uncertainties, which may cause actual results to differ
significantly from such estimates. The risks include, but are not
limited to, market demand for copper; market competition;
dependence on strategic partners; and the Company's ability to
manage its business effectively and execute on its business plan.
Certain of these and other risks are set forth in more detail in
the Company’s current report on Form 8-K filed on May 14, 2010, and
other filings with the Securities and Exchange Commission. The
Company does not assume any obligation to update or revise any such
forward-looking statements, whether as the result of new
developments or otherwise.