VANCOUVER, Oct. 2 /CNW/ - Copper Mesa Mining Corporation ("Copper Mesa" or the "Company") (TSX:CUX) today announced the transfer of Redstone Resources' properties to the lender of a bridge loan facility, negotiated on September 10, 2008. This transfer is the result of a non-payment by the Company in June 2009.
The Company's focus for the past year has been the advancing of its two U.S. copper properties located in Arizona -- Zonia and Emerald Isle. The Company principally financed this work through the borrowing of necessary funds.
On September 10, 2008, the Company announced that it had negotiated a bridge loan facility from private investors for up to $2.3 million (the "Loan"), subject to certain drawdown conditions, secured with all of the shares of Redstone Resources Corporation ("RRC"), the wholly-owned subsidiary of the Company through which the Zonia and Emerald Isle properties are held.
On December 8, 2008, the terms of the Loan were amended ("Amended Loan"). The private investors made immediately available to the Company a $0.5 million facility in replacement of the remaining $1.1 million available as part of the Loan. As a result, a total of $1.7 million became outstanding under the bridge loan facility.
As of June 11, 2009 the Company was in default of repayment of the Amended Loan. In August 2009, the private investors called the loan. Being unable to meet the loan repayment requirements, the Company, as reported in the six months ended June 30 , 2009 Management Discussions and Analysis, subsequently transferred all ownership of RRC to the lender in exchange for releasing the Company from the Amended Loan, including accrued interest, and all RRC-related liabilities.
The Company will continue to focus its efforts on the advancement and/or sale of its properties in Ecuador.
About Copper Mesa Mining Corporation
Copper Mesa is a mineral exploration and development company focused on advancing and or the sale of its properties in Ecuador. 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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