TRADING SYMBOL: TSX - ML
KINGMAN, AZ, Sept. 11 /CNW/ - Mercator Minerals Ltd. today announced that
its wholly owned subsidiary Mineral Park Inc. has entered into a long term
framework agreement with UK based Derek Raphael & Co. Ltd. ("DRC") for the
molybdenum concentrates produced at the Mineral Park Mine located in Kingman
The Framework agreement entered into with DRC is a ten year agreement,
under which DRC will purchase all of the molybdenum concentrate production of
the Mineral Park Mine, which is currently foreseen to average 10.3 million
pounds of molybdenum annually over the first 10 years of the current 25 year
mine life. Payment for the molybdenum concentrates will be made FOB the
mine-site. The first production of molybdenum concentrates are expected during
the second quarter of 2008. "We are very pleased to complete this contract
with DRC," said Mike Surratt, President and CEO of Mercator. "DRC is a very
reputable and well known international Molybdenum dealer who has roasting
capacity all over the world." Molybdenum is currently selling for
approximately US$32 per pound. Mercator used a short and a long term price of
US$10.16 per lb for Mineral Park's economic evaluation and US$7.50 per lb. to
calculate ore reserves.
Additionally, the Company reports that none of its cash or short term
investments is exposed to any investment in asset backed commercial paper in
Canada or the United States. "All of our cash is invested in term deposits,
T-bills, Banker's acceptances and US government sponsored securities and none
of the cash is exposed to investments that would have an impact on our
liquidity," said Mike Surratt, the Company's President and CEO.
Significant progress was made since the last update on the construction
of the 50,000 ton per day concentrator. The two 230 KVA transformers have been
received on site and their bases have been poured. The reclaim tunnels are
excavated and rebar and forming are underway. The first SAG mill foundation
has been poured and the first motor base on the number one sag has been
poured. Sub excavation for the flotation circuit is complete and the copper
cleaner flotation cells are ready for shipment to the mine-site. The
concentrate regrind tower mill has also been received on site. The Project
remains on schedule for Phase 1 start up the second quarter of 2008.
The mill will operate at 25,000 tons per day during Phase 1 which is
scheduled for completion in the second quarter of 2008 and will expand to
50,000 tons per day in Phase 2, which is scheduled for completion in the first
quarter of 2009. At 50,000 tons per day Mineral Park will produce 56.4 million
pounds of copper, 10.3 million pounds of molybdenum and 0.6 million ounces of
silver per year over the first 10 years of operation.
DRC is the largest trader of Molybdenum concentrates and further
downstream products worldwide. DRC supplies the steel, engineering,
non-ferrous metal and chemical industries. Their core business consists of
processing Molybdenum concentrates into Molybdic oxide or Ferro Molybdenum
(products purchased by Stainless steel mill for the production of
DRC sells approximately 20 million lbs Mo annually to their customers.
They purchase Molybdenum concentrates from a variety of mines worldwide
including Rio Tinto, Teck Cominco, Codelco, SPCC, Phelps Dodge and Antofagasta
and they sell to the largest Steel Producers in the world such as Outokumpu,
Mittal, Techint Group, Krupp, Tyssen, Mannesmann and Arcelor.
Mercator Minerals Ltd.
Mercator Minerals is a copper producer that owns and operates the Mineral
Park copper mine in Arizona, with a corporate strategy focused on maximizing
the production potential of the Mineral Park copper-molybdenum deposit. The
Company has filed a technical report for an expansion of copper production
plus molybdenum and silver production.
On Behalf of the Board of Directors
MERCATOR MINERALS LTD.
Per: "Michael L. Surratt"
Michael L. Surratt,
This press release contains certain forward-looking statements, which
include estimates, forecasts, and statements as to management's expectations
with respect to, among other things, the size and quality of the Company's
mineral reserves and mineral resources, future production, capital and mine
production costs, demand and market outlook for commodities, and the financial
results of the Company. These forward-looking statements involve numerous
assumptions, risks and uncertainties and actual results may vary.
Factors that may cause actual results to vary include, but are not
limited to, changes in commodity and power prices, changes in interest and
currency exchange rates, inaccurate geological and metallurgical assumptions
(including with respect to the size, grade and recoverability of mineral
reserves and resources), unanticipated operational difficulties (including
failure of plant, equipment or processes to operate in accordance with
specifications, cost escalation, unavailability of materials and equipment,
delays in the receipt of government approvals, industrial disturbances or
other job action, and unanticipated events related to health, safety and
environmental matters), political risk, social unrest, and changes in general
economic conditions or conditions in the financial markets. These risks are
described in more detail in the Annual Information Form of the Company. The
Company does not assume the obligation to revise or update these
forward-looking statements after the date of this report or to revise them to
reflect the occurrence of future unanticipated events, except as may be
required under applicable securities laws.
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