Curis achieving significant milestones on Florence Copper Project - draws down on US$40 million funding from Red Kite
VANCOUVER, Nov. 1, 2012 /CNW/ - Curis Resources Ltd. (TSX: CUV) ("Curis" or the "Company") is pleased to announce that it has received an early release of the second tranche of funding from the US$40 million senior secured bridge loan facility from RK Mine Finance Trust I ("Red Kite") following receipt of the Arizona Aquifer Protection Permit (APP) for Phase 1 operations at Florence Copper. This funding is being used for the purchase of copper processing equipment and to finance infrastructure and site improvement activities at the Company's flagship Florence Copper project in Arizona, USA.
"Phase 1 development of the Florence Copper project is fully funded with the support of Red Kite," commented Curis President and CEO Michael McPhie. "With the receipt of the key State of Arizona operating permit in September and the second tranche of funding from Red Kite now in place, we can complete our purchase of copper processing equipment and initiate infrastructure and site improvement activities."
In May 2012, Curis announced it had entered into a US$40 million senior secured bridge loan facility and copper cathode off-take agreement with Red Kite. Upon signing of this agreement, Curis drew down US$16.2 million of the loan facility and recently drew down another US$6 million following receipt of the State Aquifer Protection Permit on September 28, 2012.
"With our financing in place and our key state operating permit being secured, initial activities relating to site and infrastructure improvements in support of Phase 1 development of the Florence Copper project are underway," said McPhie. "A significant amount is being invested locally in the town of Florence and in Pinal County, Arizona, providing the opportunity for new jobs, and further reinforcing Florence Copper's positive impact on the local economy."
Florence Copper Update
Feasibility level optimization and design studies for Florence Copper are progressing with a formal Prefeasibility Study of the Florence Copper project scheduled for release in Q4 of 2012. Initial activities relating to site and infrastructure improvements in support of Phase 1 development has now begun and construction activities relating to the in-situ extraction well field and SX/EW facility are scheduled to begin following the completion of project permitting.
Phase 1 of the Florence Copper project will consist of a 24-well in situ copper extraction field constructed to simulate full scale operations and a state-of-the-art Solvent Extraction/Electrowinning (SX/EW) facility that will produce LME grade pure copper cathode.
Curis Resources Ltd. is a mineral development company associated with Hunter Dickinson Inc., a diversified global mining company with a 25-year history of mineral development success. Curis is focused on the acquisition, development and operation of high-quality next-generation copper properties in progressive jurisdictions around the world. It is currently focused on advancing its 100% owned Florence Copper project in Arizona, USA to near-term production.
For more project-level information, sign up to receive News and Updates from the Florence Copper website.
About RK Mine Finance
RK Mine Finance provides mining companies with project financing and metal off-take agreements for initiation or expansion of mine production and is part of the Red Kite group. Red Kite operates across the global metals industry from offices in Bermuda, Denver, Hong Kong, London, New York, Shanghai and Sydney. Investors in Red Kite funds include college endowments, foundations, family offices, pensions and other institutional investors. Contact Jeff Kechejian at +1 212 596 3474.
President & CEO
No regulatory authority has approved or disapproved of the information contained in this news release.
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 exploration drilling, exploitation activities and events or developments that the Company expects are forward-looking statements. 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 or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include inability of the Company to achieve fulfillment of all conditions under the Red Kite loan agreement, fluctuations in market prices, exploitation and exploration successes, continuity of mineralization, uncertainties related to the ability to obtain necessary environmental, land use and other permits, approvals, licenses and title on a timely basis and delays due to third party opposition, delays due to litigation regarding permits and the ability to operate Florence Copper lawfully, changes in government policies or laws regarding mining and natural resource exploration and exploitation, 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. For more information on the Company, a more detailed description of the assumptions used to develop the forward-looking statements and the risk factors that may cause actual results to differ materially from forward-looking statements, investors should review the Company's continuous disclosure filings that are available at www.sedar.com.
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