Abacus Amends Asset Purchase Agreement with Teck
June 11 2009 - 8:00AM
Marketwired
Abacus Mining & Exploration Corporation (the "Company") (TSX
VENTURE: AME) announces that it has signed an agreement (the
"Amending Agreement") with Teck Resources Limited and Afton
Operating Corporation (collectively "Teck") amending the Asset
Purchase Agreement between the parties dated November 25, 2005, and
amended February 29, 2008, May 26, 2008, and December 22, 2008
(collectively, the "Asset Purchase Agreement") covering certain
assets located in the copper-gold rich Afton camp.
Under the Asset Purchase Agreement, Abacus purchased tailings
storage area, associated permits including water rights, and other
assets located near the Company's 100% owned Afton properties,
including the Ajax property. The acquisition of these assets
benefits the Company with a 'brownfield' infrastructure providing
an early and cost efficient start on development of the Ajax
property.
Under the terms of the Amending Agreement, Teck will receive
additional common shares of the Company sufficient to increase its
ownership interest in the Company to 19.99%, and could receive an
additional cash payment of up to $5 million. The number of
additional shares and the amount of additional cash is dependent of
the market value of the Company at the time the assets are
transferred from Teck to the Company (the "Transfer Date"). The
additional cash payment, if any, is payable eighteen months after
the Transfer date. The Transfer date could be as early as July 31,
2009.
The Amending Agreement replaces provisions in the original Asset
Purchase Agreement which could have caused the Company to be
required to issue additional shares on the Transfer Date that could
have led to excessive dilution to existing shareholders under
circumstances unforeseen by either party. This amendment more
clearly defines the payment terms and eliminates that potential
exposure.
"We are extremely pleased that Teck will continue as a
significant shareholder in Abacus," states Doug Fulcher, President
of Abacus. "We believe it evidences the upside potential of our
Ajax copper/gold project. We are nearing completion of the
Preliminary Economic Assessment and it is expected to be released
shortly."
The foregoing is subject to regulatory acceptance.
Abacus Mining & Exploration is a junior exploration and
development company with measured and indicated resources at the
Ajax property totaling 365 million tonnes grading 0.31% copper and
0.20 g/t gold using a 0.20% copper equivalent cutoff. The 43-101
compliant resource (January 14th, 2009) prepared by AMEC Americas
Limited, demonstrates the significant size of the Ajax area with
approximately 2.5 billion pounds of copper and 2.3 million ounces
of gold. Abacus is now in the process of completing a preliminary
economic assessment ("PEA") that contemplates a 60,000 tonne per
day operation. The Ajax deposit remains open along strike and at
depth.
On Behalf of the Board
ABACUS MINING & EXPLORATION CORP.
Doug Fulcher, President and Chief Executive Officer
Forward-Looking Information
This release includes certain statements that may be deemed
"forward-looking statements". All statements in this release, other
than statements of historical facts, that address events or
developments that Abacus Mining and Exploration Corp. (the
"Company") expects to occur, are forward-looking statements.
Forward-looking statements are statements that are not historical
facts and are generally, but not always, identified by the words
"expects", "plans", "anticipates", "believes", "intends",
"estimates", "projects", "potential" and similar expressions, or
that events or conditions "will", "would", "may", "could" or
"should" occur. Although the Company believes the expectations
expressed in such forward-looking statements are based on
reasonable assumptions, such statements are not guarantees of
future performance and actual results may differ materially from
those in the forward-looking statements. Factors that could cause
the actual results to differ materially from those in
forward-looking statements include market prices, exploitation and
exploration successes, and continued availability of capital and
financing, and general economic, market or business conditions.
Investors are cautioned that any such statements are not guarantees
of future performance and actual results or developments may differ
materially from those projected in the forward-looking statements.
Forward-looking statements are based on the beliefs, estimates and
opinions of the Company's management on the date the statements are
made. The Company undertakes no obligation to update these
forward-looking statements in the event that management's beliefs,
estimates or opinions, or other factors, should change.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Contacts: Abacus Mining & Exploration Corporation Tim Mikula
Investor Relations 866-834-0301 info@amemining.com
www.amemining.com
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