Abacus Completes Asset Purchase Agreement with Teck
April 08 2011 - 9:00PM
Marketwired
Abacus Mining & Exploration Corporation (TSX VENTURE: AME)
("Abacus") is pleased to announce that it has completed the
acquisitions contemplated under the Asset Purchase Agreement dated
November 25, 2005, as amended (the "APA") with Teck Resources
Limited ("Teck") pursuant to which certain assets of Teck's former
Afton mine, and most notably the Iron Mask and Rainbow back-in
rights, were acquired.
The APA provided for the sale by Teck to Abacus of the Iron Mask
and Rainbow back-in rights that Teck held to certain Afton-Ajax
mineral claims, as well as the tailings pond, mill, workshop and
office buildings of the former Afton mine and the land upon which
such buildings are situated. Such assets were valued at
$29,250,000, which was payable by cash payments totaling
$10,750,000 (previously paid) and the issuance of 18,500,000 common
shares (previously issued). The closing of this transaction
provided for the issuance to Teck of an additional 20,751,176
common shares in Abacus to satisfy the last of the share payments
owing under the APA.
As a result of this transaction, Teck now owns 39,251,176 shares
of the Corporation representing 19.9% of the issued and outstanding
shares of Abacus.
Pursuant to the provisions of the previously announced Joint
Venture Shareholders' Agreement dated October 12, 2010, these
assets have been transferred to the joint venture company, KGHM
Ajax Mining Inc. ("KGHM Ajax"), 49% of which is owned by Abacus and
51% of which is owned by Abacus' joint venture partner, KGHM Polska
Miedz S.A. ("KGHM"). A remaining final cash payment to Teck of $5
million required under the APA is to be made on or before October
8, 2012. The payment will be assumed by KGHM Ajax, provided that
KGHM exercises its option to increase its ownership position in
KGHM Ajax to 80%, which Abacus expects to occur later this year.
KGHM currently owns 15,000,000 shares of Abacus, representing 7.6%
of the total shares issued and outstanding.
Jim Excell, President & CEO of Abacus, commented on the
transaction, "Concluding the APA with Teck brings to a close a
chapter that has long been outstanding. Abacus effectively has two
major shareholders and industry leaders in Teck and KGHM, and a
clean slate to build significant value and cashflow growth under a
world class mining team with the Ajax project as its
cornerstone."
Work continues to progress on the Feasibility Study of the Ajax
Mine expected to be finalized in the fall of this year with
environmental permitting now underway.
About Abacus
Abacus is an exploration and mine development company focused on
the development of the Ajax copper-gold project located 10 km
southwest of Kamloops, B.C. With major copper producer and joint
venture partner, KGHM Polska Miedz S.A., Abacus, as operator, is
currently completing the feasibility study on the Ajax project,
which is expected to be completed in the fall of 2011. The study
follows from the previously released Preliminary Economic
Assessment (the "PEA") of June 22, 2009 by Wardrop Engineering
Inc., which contemplates annual production of 110 million pounds of
copper and 100,000 ounces of gold in concentrate at a processing
rate of 60,000 tonnes per day. The PEA indicates a NPV of US$1,147
Mil (discounted at 8%) on a 23-year mine life based on 3-year
average prices of US$2.99/lb Cu and US$773/oz Au; and a base case
NPV of US$193 Mil using US$2.00/lb Cu and US$700/oz Au. Please
refer to the Company's website for further information at
www.amemining.com.
On Behalf of the Board,
ABACUS MINING AND EXPLORATION CORPORATION
James D. Excell, President & CEO
Donna Yoshimatsu, Director, Investor Relations
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 & Exploration Corporation (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. Forward looking statements in this news release
include, but are not limited to, Abacus' expectation that KGHM will
exercise its option to increase its ownership of KGHM Ajax to 80%
later this year, and that a Feasibility Study of the proposed Ajax
Mine will be completed in the fall of 2011. 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. Except as required by applicable securities laws, 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, Investor Relations dyoshimatsu@amemining.com Abacus
Mining and Exploration Corp. Tim Mikula Investor Relations
866.834.0301 or 604.682.0301 604.682.0307 (FAX)
tmikula@amemining.com www.amemining.com
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