VANCOUVER, British Columbia,
May 6, 2015 /PRNewswire/ --
Capstone Mining Corp. ("Capstone") (TSX: CS) today announced
that it has entered into zero-cost collars for 36,000 tonnes of
copper production between now and September
30, 2015 (with pricing periods from June 2015 to February
2016) at a minimum of US$2.60
and a maximum of US$3.10 per pound of
copper. There was no cost to Capstone to put this protection in
place.
"Capstone's strategy is to remain unhedged on our copper
production," said Darren Pylot,
President and CEO of Capstone. "However, 2015 is a year of
significant investment for the future of our company and includes
both extending the mine life at Pinto Valley and stripping our
Minto North pit upon receipt of the
necessary license. This collar ensures we can sustain our
operations and complete our growth initiatives while remaining in
compliance with our debt covenants, regardless of the copper price
for the balance of this year."
"This price protection allows us to fully commit our 2015
capital expenditure budget, while retaining some benefit should the
price for copper continue to increase," continued Mr. Pylot. "The
collar will run until early 2016, when the significant 2015 growth
expenditures will be behind us and our capital returns to normal
sustaining levels."
About Capstone Mining Corp.
Capstone Mining Corp. is a Canadian base metals mining company,
focused on copper. We are committed to the responsible development
of our assets and the environments in which we operate. Our three
producing mines are the Pinto Valley copper mine located in
Arizona, US, the Cozamin
copper-silver mine in Zacatecas State, Mexico and the Minto copper mine in
Yukon, Canada. In addition,
Capstone has two copper development projects; the large scale 70%
owned copper-iron Santo Domingo
project in Region III, Chile, in
partnership with Korea Resources Corporation, and the 100% owned
copper-zinc Kutcho project in British
Columbia, Canada, as well as exploration properties in
Chile. Using our cash flow and
strong balance sheet as a platform, Capstone's strategy is to
extend the lives of our current mines with mineral resource and
reserve expansions, to advance the Santo
Domingo development project, conduct focused exploration and
grow through acquisitions in politically stable, mining-friendly
regions. We will pace our growth with our financial capacity,
ensuring we retain, as a priority, sufficient financial flexibility
to meet the requirements of our existing operations and our
committed development projects, while maintaining an adequate
cushion to deal with market volatility and operating risks inherent
in the mining industry. Our headquarters are in Vancouver, Canada and we are listed on the
Toronto Stock Exchange (TSX). Further information is available at
http://www.capstonemining.com.
Cautionary Note Regarding Forward-Looking
Information
This document may contain "forward-looking information" within
the meaning of Canadian securities legislation and "forward-looking
statements" within the meaning of the United States Private
Securities Litigation Reform Act of 1995 (collectively,
"forward-looking statements"). These forward-looking statements are
made as of the date of this document and Capstone Mining Corp. (the
"Company") does not intend, and does not assume any obligation, to
update these forward-looking statements, except as required under
applicable securities legislation.
Forward-looking statements relate to future events or future
performance and reflect Company management's expectations or
beliefs regarding future events and include, but are not limited
to, statements with respect to the estimation of mineral reserves
and mineral resources, the conversion of mineral resources to
mineral reserves, the realization of mineral reserve estimates, the
timing and amount of estimated future production, costs of
production, capital expenditures, success of mining operations,
environmental risks, unanticipated reclamation expenses, title
disputes or claims and limitations on insurance coverage. In
certain cases, forward-looking statements can be identified by the
use of words such as "plans", "expects" or "does not expect", "is
expected", "outlook", "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates" or "does not anticipate", or
"believes", or variations of such words and phrases or statements
that certain actions, events or results "may", "could", "would",
"might" or "will be taken", "occur" or "be achieved" or the
negative of these terms or comparable terminology. In this document
certain forward-looking statements are identified by words
including "guidance", "plan", "planned", "estimated",
"projections", "projected" and "expected". By their very nature
forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of the Company to be materially
different from any future results, performance or achievements
expressed or implied by the forward-looking statements. Such
factors include, among others, risks related to actual results of
current exploration activities; changes in project parameters as
plans continue to be refined; future prices of mineral resources;
possible variations in ore reserves, grade or recovery rates;
accidents; dependence on key personnel; labour pool constraints;
labour disputes; availability of infrastructure required for the
development of mining projects; delays in obtaining governmental
approvals or financing or in the completion of development or
construction activities; counterparty risks associated with sales
of our metals; changes in general economic conditions; increased
operating and capital costs; operating in foreign jurisdictions
with risk of changes to governmental regulation; impact of climatic
conditions on our Pinto Valley, Cozamin and Minto operations;
increasing energy prices; our ability to integrate new acquisitions
into our operations, and other risks of the mining industry as well
as those factors detailed from time to time in the Company's
interim and annual financial statements and management's discussion
and analysis of those statements, all of which are filed and
available for review on SEDAR at http://www.sedar.com. Although the
Company 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 not to be as
anticipated, estimated or intended. 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 should not
place undue reliance on forward looking statements.
Cindy Burnett, VP, Investor
Relations and Communications, +1-604-637-8157,
cburnett@capstonemining.com