VMS Ventures Completes Ore Sales and Purchase Agreement With Hudbay Minerals for the Reed Copper Mine
June 05 2014 - 2:02PM
Marketwired
VMS Ventures Completes Ore Sales and Purchase Agreement With Hudbay
Minerals for the Reed Copper Mine
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jun 5, 2014) - VMS
Ventures Inc. (TSX-VENTURE:VMS) ("VMS" or the "Company") is pleased
to announce that in keeping with the Joint Venture Agreement (JV
Agreement) with Hudbay Minerals Inc., (TSX:HBM)(NYSE:HBM)
("Hudbay") it has successfully negotiated and executed a definitive
and binding Ore Sales and Purchase Agreement ("OS&P Agreement")
with Hudbay regarding its 30% share of production from the Reed
mine, located near Flin Flon, Manitoba. The OS&P Agreement
commercial terms we negotiated in accordance with the overriding
principle that both parties be treated fairly, reasonably and
transparently and that each party be guided by the objective to
secure fair pricing.
Revenue earned by VMS from the sale of its share of Reed ore is
contingent upon actual mill recoveries achieved at Hudbay's
concentrating facility in Flin Flon, and on the actual mining,
milling and other operating costs associated with producing and
selling both copper and zinc concentrates from the Reed ore. The
price payable to VMS for its proportional share of copper
concentrate produced from Reed is based on benchmark terms and
pricing agreed between Hudbay and its largest purchaser of copper
concentrate. The selling price for Zinc concentrates for VMS's
share of ore produced at Reed will be based on standard third party
commercial terms for treatment at a Zinc refinery for each
particular year of operation. VMS will start receiving cash flow
from Reed once its share of capital costs incurred in mine
development are repaid to Hudbay.
Rick Mark (CEO and Chair) stated "This agreement represents a
major milestone in the development and now commercial operation of
the Reed mine. VMS and Hudbay worked very closely to ensure a fair,
transparent and practical sales agreement, which will result in
maximizing the financial benefits of the mine's production for both
parties. We are pleased to continue our strong relationship into
the operational phase of the mine."
About VMS Ventures Inc.:
VMS Ventures Inc. is focused primarily on acquiring, exploring
and developing copper-zinc-gold-silver massive sulphide deposits in
the Flin Flon-Snow Lake VMS Belt of Manitoba. The Company's VMS
project property portfolio consists of the Reed mine, which is
subject to a 70-30 JV with Hudbay Minerals and achieved initial
production in Q4-2013, Copper Project, McClarty Lake Project, Sails
Lake Project, Puella Bay Project and Morton Lake Project. Outside
of the Snow Lake camp, the Company holds massive sulphide
prospective properties near the past producing Fox Lake and Ruttan
copper-zinc mines, near the communities of Lynn Lake and Leaf
Rapids in northern Manitoba. These properties are located in the
mining friendly province of Manitoba, Canada. The Company also has
optioned the Black Creek property in the Sudbury mining camp.
VMS Ventures owns approximately 22% of North American Nickel
Inc. (TSX-VENTURE:NAN). For more information on North American
Nickel Inc., please visit www.northamericannickel.com.
Forward Looking Statement
Some of the statements contained herein may be forward-looking
statements which involve known and unknown risks and uncertainties.
Without limitation, statements regarding potential mineralization
and resources, exploration results, and future plans and objectives
of the Company are forward-looking statements that involve various
risks. The following are important factors that could cause the
Company's actual results to differ materially from those expressed
or implied by such forward-looking statements: changes in the world
wide price of mineral commodities, general market conditions, risks
inherent in mineral exploration, risks associated with development,
construction and mining operations, the uncertainty of future
profitability and the uncertainty of access to additional capital.
There can be no assurance that forward-looking statements will
prove to be accurate as actual results and future events may differ
materially from those anticipated in such statements. VMS Ventures
Inc. undertakes no obligation to update such forward-looking
statements if circumstances or management's estimates or opinions
should change. The reader is cautioned not to place undue reliance
on such forward-looking statements.
ON BEHALF OF THE BOARD OF DIRECTORS
John Roozendaal, B.Sc., President, VMS Ventures Inc.
Neither the 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.
VMS Ventures Inc.Evan SleemanDirector(604) 986-2020 or Toll
Free: 1-866-816-0118
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