Abacus Mining Closes C$4.5 Million Private Placement with KGHM
May 10 2010 - 7:30AM
Marketwired
Abacus Mining & Exploration Corporation ("Abacus" or the
"Company") (TSX VENTURE: AME) is pleased to announce that it has
closed the private placement ("Private Placement") with KGHM POLSKA
MIEDZ S.A. ("KGHM") previously announced on May 4, 2010 for gross
proceeds of CDN $4,500,000.
KGHM purchased 15,000,000 common shares of Abacus at a price of
CDN $0.30 per share. The shares are subject to a statutory hold
period in Canada which expires on September 8, 2010. As a result of
the Private Placement, KGHM now holds approximately 8.75% of the
issued and outstanding common shares of Abacus.
The proceeds of the Private Placement will be used to help fund
exploration and ongoing project expenditures on Abacus' Afton-Ajax
copper-gold project, and for general corporate purposes.
On Behalf of the Board,
ABACUS MINING AND EXPLORATION CORPORATION
Doug Fulcher, President and Chief Executive Officer
Tom McKeever, Executive Chairman
About Abacus
Abacus is an exploration and development company with a 43-101
compliant positive preliminary economic assessment report
(announced June 22, 2009) for its Ajax copper/gold project located
10 kilometres southwest of Kamloops, British Columbia. The report
contemplates a 60,000 tonne per day operation producing an average
of approximately 110 million pounds of copper (approx. 50,000
tonnes) and 100,000 ounces of gold in concentrate annually.
Sensitivity analyses approximating metal prices (US$3.00 per pound
copper and US$1,000 per ounce gold) in the assessment indicate a
NPV of $1.46 billion discounted 8% over a 23 year mine life, with
an IRR of 35.4%, cash costs of $0.90 per pound copper, and payback
of 2.0 years. The Ajax extension remains open along strike and at
depth. Mineral resources that are not mineral reserves do not have
demonstrated economic viability.
Eco Tech Laboratory Ltd. of Kamloops, B.C., completed all of
Abacus' analytical work on the aforementioned drill project. A
quality-control program, using specific standards and blank samples
is in place. Robert G. Friesen, P.Geo., the Company's Senior
Geologist, is the Qualified Person responsible for the design and
conduct of the work performed.
About KGHM
KGHM Polska Miedz S.A. is the ninth largest producer of copper
in the world, with annual production of over 500,000 tonnes
(approx. 2.7% of global production) and the world's third-largest
silver producer, with annual output of around 1,100 tonnes (approx.
7% of global production). A fully integrated producer of high
quality copper in cathodes, wire rods, oxygen-free copper and
silver-bearing copper rods and round billets, the KGHM Group
comprises over 30 companies encompassing mines, copper smelters,
ore enrichment plants and hydrotechnical facilities providing
auxiliary support for the core production business and
telecommunications. KGHM Group has been mining and processing
copper for almost 50 years and employs over 27,000 people. KGHM's
shares trade on the Warsaw Stock Exchange with a market
capitalization of over US$7 billion.
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 and Exploration Corp. Donna Yoshimatsu
Director of Investor Relations 604-682-0301 604-682-0307 (FAX)
dyoshimatsu@amemining.com Abacus Mining and Exploration Corp. Tim
Mikula Investor Relations 866-834-0301 tmikula@amemining.com
www.amemining.com
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