VANCOUVER, Dec. 3 /CNW/ - Copper Mesa Mining Corporation ("Copper Mesa" or the "Company") (TSX:CUX) today announced that the Company has entered into a non-binding Letter of Intent ("LOI") with Atlas Base Metals Inc. ("ABMI") a privately held base metals exploration company, whereby Copper Mesa will purchase all of the issued and outstanding shares of ABMI (the "Transaction"). The final terms and conditions will be set out in the Management Proxy Circular for a Special Shareholder General meeting to be held as soon as feasible for approval of the Transaction.
Under the terms of the LOI, Copper Mesa will purchase all of ABMI assets including one past-producing gold/copper/molybdenum property, the principal asset of ABMI, located in southwest New Mexico and known as Monte Cristo. ABMI has identified a large porphyry gold/copper/molybdenum target on the property using aeromag and IP surveys. The property will be explored extensively through surface and underground sampling and drill programs in coming months.
The second exploration target controlled by ABMI, the Luckie property, is located in southwest Arizona, in the Morenci Mining District, and represents a deep molybdenum porphyry target. This target has been identified through aeromag surveying and surface sampling.
Pursuant to the Transaction, Copper Mesa will acquire 100% of the issued and outstanding shares of Atlas Base Metals Inc. in exchange for 95,229,270 Copper Mesa common shares. The agreement contemplates a minor restructuring of the Copper Mesa Board of Directors, whereby ABMI will name two directors to the Board.
The Company continues to closely monitor the political situation in Ecuador and its bearing on the Company's properties located there. An earlier decision to sell or joint venture the properties is currently being re-evaluated in light of the pending Transaction.
The Company further announces that with the approval of the TSX, it will be shortly completing a non-brokered private placement. The proceeds of this private placement will be used for working capital and administrative purposes.
Completion of the Transaction is subject to a number of conditions, including, but not limited to, satisfactory due diligence review by both parties; the execution of a definitive agreement on or before December 31, 2009; regulatory approval and shareholder approval. There can be no assurance that the Transaction will be completed as proposed or at all.
About Copper Mesa Mining Corporation
Copper Mesa is a mineral exploration and development Company. www.coppermesacorp.com
This press release may contain forward-looking statements that are based on Copper Mesa's expectations, estimates and projections regarding its business and the economic environment in which it operates. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. Therefore, actual outcomes and results may differ materially from those expressed in these forward-looking statements and readers should not place undue reliance on such statements. Statements speak only as of the date on which they are made, and the Company undertakes no obligation to update them publicly to reflect new information or the occurrence of future events or circumstances, unless otherwise required to do so by law.
SOURCE Copper Mesa Mining Corporation
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