TRADING SYMBOL: TSX - ML
VANCOUVER, Nov. 6 /CNW/ - Mercator Minerals Ltd. ("Mercator") (TSX: ML)
today announced that its wholly owned Mineral Park copper mine will not be
affected by the recent moves by the U.S. Congress to impose royalties on
federally owned land. 100% of the Mineral Park ore reserves are contained and
situated on private land (surface and underground) owned by the Company and
therefore would not be subject to the proposed royalty structure.
The construction project for the Phase 1 expansion of the Mineral Park
mine continues to make significant progress. The first SAG mill is on site and
being readied for installation. The second SAG mill is in Kingman and is
expected to be delivered to the mine site in the next month for installation
at that time. The ball mills required for Phase 1 are still on schedule for
Q1, 2008 delivery. In the moly circuit and copper cleaner flotation areas,
most of the foundation excavation has been completed and concrete work is
progressing on schedule. All major equipment purchases for the expansion of
operations have been made and are now on fixed price delivery. Electrical
transformers have arrived on site, the water supply has been secured, and
ancillary mechanical installations are proceeding. The construction camp now
includes 100 workers. Operation of the mine and SXEW facilities continues
uninterrupted during the construction. The project remains on time for the
startup of the 25,000 ton per day copper - molybdenum milling operation in Q2
of 2008. The ball mill deliveries for Phase 2 of the expansion are also still
on schedule for Q1 of 2009.
The independent auditors have reviewed the unaudited financial statements
for the period ended June 30, 2007, and based on comments received, the
Company has amended and re-filed the financial statements and the management
discussion and analysis for the three and six months ended June 30, 2007. The
net effect of amendment of the interim financial statements was to record
earnings of US$1,518,219 for the three month period ended June 30, 2007 rather
than the net loss of US$6,507,559 previously reported by the Company. The net
loss reported for the six month period ending June 30, 2007 was reduced to
US$6,446,466, improved from a previously recorded net loss of US$11,104,350.
The changes arise primarily due to reclassification of the provision for
income tax and of interest expense related to the financing completed in
February of 2007.
About Mercator Minerals Ltd.
Mercator has 100% ownership of, and is the operator of, the Mineral Park
mine in Arizona. The corporate strategy focuses on maximizing the production
potential of the Mineral Park copper-molybdenum deposit, and growth through
mergers and acquisitions. The Mineral Park mine currently produces 12 million
pounds of copper per year from its SXEW operation, and is cash flowing
approximately US$2 million per month at current metal prices. The Company is
undertaking a two phase expansion that is expected to see average annual metal
production of approximately over the first 10 years from Mineral Park of
approximately 56.4 million pounds of copper, 10.3 million pounds of molybdenum
and 600,000 ounces of silver. The Company is well-financed with sufficient
proceeds to complete the Mineral Park expansion. Recently Mercator announced
its intention to purchase the shares of Tyler Resources Inc. If successful,
the combined assets will create a significant base metal producer with
expanding copper production, the second largest molybdenum production in North
America and a substantial pipeline of base metal production projects that the
Company expects to finance largely from free cash flow.
On Behalf of the Board of Directors
MERCATOR MINERALS LTD.
Per: "Michael L. Surratt"
Michael L. Surratt,
The Toronto Stock Exchange does not accept responsibility for the
adequacy or accuracy of this press release.
For further information:
For further information: Marc LeBlanc, VP Corporate Development and
Corporate Secretary, Tel: (604) 981-9661 or (604) 716-5582, Fax: (604)
960-9661, Email: firstname.lastname@example.org