Bell Copper Corporate Updates

TSX-V Symbol: BCU

VANCOUVER, Feb. 7 /CNW Telbec/ - Bell Copper Corporation ("Bell Copper" or the "Company") (TSX-V Symbol: BCU) is pleased to provide updates on a number of corporate matters.

After careful consideration and after discussion with numerous stakeholders, the Company's management and Board of Directors have decided that the shareholder's interests are best served if the Company does not proceed with its previously announced plans to spin out its Kabba and Sombrero Butte exploration properties into a separate company. 

The Company is also pleased to announce that it has entered into a new letter of intent ("LOI") with Macquarie Bank Limited ("Macquarie") that further amends the debt restructuring terms previously announced on October 7, 2010.  The Company has recently made two payments to Macquarie of $400,000 in October and a subsequent $1.35 million payment in November on its Bell Demand Debenture.  A further $500,000 payment has now been made, and the remaining amount of $830,247.81 (including accrued interest) to repay the facility in full will be due on February 28, 2011.

The new LOI also revises the settlement terms of the Rogue River Canadian dollar debenture.  This debenture with Bell's wholly owned subsidiary, which totalled approximately $4.1 million at December 31, 2010, is to be retired through the conversion of $2 million into a 2% net smelter return on the La Balsa project in Mexico effective December 31, 2010.  The balance, plus accrued interest (which reduces to 1% per month following the repayment of the Bell Demand Debenture) will be satisfied in exchange for units of shares and warrants to be issued by the Company at the time of, and at the same price and terms as that offered to other investors in an equity raising of no less than $2.5 million expected to be completed prior to April 30, 2011.  The terms for repayment of the U.S. dollar Rogue River debenture plus accrued interest on January 31, 2013 remains as outlined in the October 7, 2010 release.

In order to fund these latest payments, the Company, prior to year-end, sold all 3 million Castle Resources shares that it had received as part of the sale of the Granduc project to Castle Resources.  The Company also expects to receive up to $1.37 million from the exercise of $0.10 warrants due on February 24, which should provide more than adequate funding to repay the balance of the Bell Demand Debenture.

The Company also announces that Timothy Lallas has stepped down as the Company's Chief Financial Officer.  We would like to thank Mr. Lallas for his contributions over the past eight months. The Company is in active discussions with candidates that have extensive experience in the financing of junior companies and in the securing of project financing for start-up mines. 

Dr. Michael Werner, CEO of Bell Copper stated, "We are very thankful for the continued support we are receiving from Macquarie Bank. We continue to make excellent progress in the financial restructuring the Company for what we hope will be a rapid transition to copper production following the completion of the La Balsa feasibility study now underway.  We have had positive responses from a number of companies interested in providing funding to the Company, and we are already in receipt of an indicative term sheet for a $30 million debt financing for our La Balsa project, predicated upon the completion of the feasibility study.  Our decision not to spin-off our exploration projects into a new company is driven by the belief that these exploration projects will have a better chance of being properly funded within Bell, and hopefully with the use of less dilutive internally generated operating cash flow in the future from what we believe will be low cost copper operations.  These exploration projects offer tremendous upside to the Company, provide an opportunity to add to our pipeline of development projects, and adds an extra element of copper exposure that investors are currently seeking." 

About Bell Copper

Bell Copper is a public company with a focus on copper exploration, development and production in North America. The Company has an extensive portfolio of exploration and development projects located in some of North America's premier copper producing regions including Mexico and the Southwestern US.

More information on Bell Copper: www.bellcopper.net

On behalf of the Board of Directors of
Bell Copper Corporation

"Michael Werner"

Michael Werner, CEO & Director

 

"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."


SOURCE BELL COPPER CORPORATION

For further information:

Bell Copper Corporation    Renmark Financial Communications Inc.
   
Sarah Ducharme
Executive Assistant
Tel.: (604) 669-1484
info@bellcopper.net
www.bellcopper.net
 
Christine Stewart:
cstewart@renmarkfinancial.com
Jason Roy:
jroy@renmarkfinancial.com
Tel.: (514) 939-3989 or (416) 644-2020
www.renmarkfinancial.com

Profil de l'entreprise

BELL COPPER CORPORATION

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