VANCOUVER, Dec. 21 /CNW/ - Mercator Minerals Ltd ("Mercator") (TSX - ML) and Stingray Copper Inc. ("Stingray") (TSX - SRY) are pleased to announce the completion of their previously announced business combination (the "Transaction"). The Transaction was completed via a plan of arrangement that was approved by the shareholders of Stingray on December 11, 2009 and received court approval on December 18, 2009. Stingray is now a wholly owned subsidiary of Mercator.
"The addition of Stingray's El Pilar copper project to Mercator's development pipeline has strengthened the company's organic growth profile while substantially increasing copper leverage, with a +113% increase in copper reserves and +141% increase in total copper resources", said Michael Surratt, President and CEO of Mercator. "We can now focus on delivering our planned Mineral Park Phase II expansion in 2010 while commencing the development plan for El Pilar."
The Transaction was approved by 99.9% of the eligible votes cast at the meeting of the Stingray shareholders, representing 64% of Stingray's outstanding shares that were eligible to vote. Pursuant to the plan of arrangement each Stingray shareholder has received 0.25 Mercator shares. All outstanding options to acquire common shares of Stingray have been exchanged for Mercator options to purchase 0.25 of one Mercator share in lieu of one Stingray option. Mercator also welcomes former Stingray director Joseph Keane to the board of directors.
The TSX will disseminate a notice announcing the delisting of Stingray shares when the TSX deems appropriate.
- El Pilar is an advanced SX-EW copper development asset in Sonora,
Mexico with a recently completed Definitive Feasibility Study and
robust economics based on US$2.25/lb copper:
- After tax IRR of 25.3% (33.6% before tax)
- After tax NPV10% of US$184M (US$289M before tax)
- Forecast 14 year life of mine with total cathode copper production
of 956 million lbs
- Increased leverage to copper with a +113% increase in copper reserves
and a +141% increase in total copper resources.
- Sustained pipeline of expansion and project development with Mineral
Park Phase II steady-state production coinciding with El Pilar
- Asset diversification in an established mining friendly jurisdiction.
Gary Simmerman, BSc., Mercator's VP Engineering, a Qualified Person as defined by NI43-101, supervised the preparation of and verified the Mercator technical information contained in this release.
About Mercator Minerals Ltd.
Mercator Minerals Ltd. is a TSX listed mining company with an experienced management team that has brought the mill expansion at the Mineral Park Mine, one of the largest and most modern copper-moly mining-milling operations in North America to production in less than 2 years. Mercator management is dedicated to maximizing profits at the Mineral Park Mine and the development of the El Pilar copper project in Mexico.
The Toronto Stock Exchange does not accept responsibility for the adequacy or accuracy of this press release.
Forward Looking Information
This news release contains forward looking statements of Mercator, being statements which are not historical facts, including, without limitation, statements regarding the potential benefits of the proposed acquisition of Stingray by Mercator and discussions of future plans, projections and objectives. In addition, estimates of mineral reserves and resources may constitute forward looking statements to the extent they involve estimates of the mineralization that will be encountered if a property is developed. This news release also contains forward looking statements of Stingray, which are derived from publicly available documents. There can be no assurance that such statements will prove accurate. Such statements are necessarily based upon a number of estimates and assumptions that are subject to numerous risks and uncertainties that could cause actual results and future events to differ materially from those anticipated or projected. Important factors that could cause actual results to differ materially from Mercator's or Stingray's expectation are in the documents filed by Mercator and Stingray, respectively, from time to time with the Toronto Stock Exchange and provincial securities regulators, most of which are available at www.sedar.com. Other than as required by applicable securities legislation, Mercator and Stingray disclaim any intention and assumes no obligation to revise or update any forward-looking statement even if new information becomes available, as a result of future events or for any other reason.
SOURCE Mercator Minerals Ltd.
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