Norsemont Mining Completes Constancia Acquisition Payments



    
    Shares Issued and Outstanding: 70,020,705
    TSX: NOM
    BVL: NOM
    

    TORONTO and LIMA, Peru, June 30 /CNW/ - Norsemont Mining Inc. ("the
Company") (TSX: NOM, BVL: NOM) today announced that the Company has made the
fifth and final Constancia acquisition payment of US$4 million to Mitsui
Mining and Smelting Co. Ltd. ("Mitsui"). This completes an eighteen-month
payment program under which Norsemont has acquired an undivided 100 percent
interest in the Constancia copper-molybdenum-gold-silver project in southern
Peru.
    Through the exercise of an option agreement, Norsemont acquired Rio
Tinto's 70 percent interest in Constancia for a cash consideration of US$13
million. Concurrently, Norsemont entered into an agreement with Mitsui to
purchase the remaining 30 percent interest in Constancia for a cash
consideration of US$9.8 million payable in five tranches. Today's payment of
US$4 million represents the final payment to Mitsui.
    Commenting, Norsemont CEO, Patrick Evans said: "Through an investment of
$22.8 million, Norsemont has acquired full control over a project with a net
present value estimated at $530 million. This has been achieved without have
to sell any portion of Constancia's future metal off-take. In addition, we
have purchased the surface rights over approximately 4,000 hectares at the
Constancia project, which is of significant strategic benefit for the
project's future development."
    Norsemont is currently completing the Constancia feasibility study, the
results of which are expected to be released during the coming quarter. In
addition, the Constancia environmental and social impact assessment remains on
schedule for completion by the end of 2009. Permitting for the Constancia
project is expected to take approximately six months.
    Following the successful completion of the recent rights issue, Norsemont
is also preparing to recommence exploration drilling on the prospective
Pampacancha copper-gold project, which is located 2 kilometres south-east of
the Constancia deposit. Drilling at the recently discovered Chiloroya South
discovery, located 5 kilometres south of Constancia, will commence as soon as
the required permits have been issued. These discoveries are expected to
support the Company's vision to increase the global Constancia resource to
more than 800 million tonnes.

    About Norsemont Mining

    Norsemont Mining is a Canadian mineral exploration and development
company focused on the 100 percent-controlled Constancia Cu-Mo-Ag deposit in
southern Peru.
    The Constancia Project currently has a 43-101 compliant indicated
resource of 256.3M tonnes at 0.5% Cu (2.85 Billion lbs Cu) and an inferred
resource of 156.5M tonnes at 0.33% Cu (1.14 Billion lbs Cu). A recently
completed scoping study anticipates a project producing in excess of 90,000
tonnes of copper annually. The study indicates the project has a net present
value of $530 million and an internal rate of return of 25.3 percent. The
following long-term commodity price assumptions were used in the study: copper
$1.80 per pound, molybdenum $12 per pound and silver $11 per ounce. The full
study, dated December 11, 2007, and titled "Preliminary Assessment of the
Constancia Project, Department of Cusco, Peru" is available for viewing on
SEDAR. Mineral resources that are not mineral reserves do not have
demonstrated economic viability.
    The technical information provided in this press release was reviewed and
approved by Robert. W. Baxter (MAusIMM), the President and a director of the
Company and a qualified person for the purposes of National Instrument 43-101.





For further information:

For further information: Patrick Evans, Norsemont Mining, Phone: (416)
670-5114, E-Mail: investors@norsemont.com, Web Site: www.norsemont.com

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NORSEMONT MINING INC.

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