Stingray issues shares to Xstrata for El Pilar property
2009-09-09 11:22 ET - News Release
Mr. Peter Mordaunt reports
STINGRAY ISSUES SHARES TO XSTRATA TO COMPLETE ACQUISITION OF EL PILAR COPPER PROPERTY, MEXICO
Stingray Copper Inc. is issuing to Xstrata Canada Corporation 1,829,837 common shares of the corporation to complete the terms of the agreement between the companies for the acquisition of Noranda Exploration Mexico S.A. de C.V., more particularly, the 100-per-cent ownership of the El Pilar copper property. Upon the delivery of the positive El Pilar feasibility study completed by M3 Engineering and Technology Corporation, as described in the corporation's news release 2009-02, Stingray is obliged to issue these shares to Xstrata, so that post this share issuance, Xstrata will have been issued 9.99 per cent of the issued shares of the corporation. The share issuance is subject to usual regulatory approvals. Stingray's issued capital post this issuance will be 60,555,819 shares.
The El Pilar copper property, located in Sonora, Mexico, hosts a mineral reserve of 239 million tonnes that has been scheduled for a 14-year open pit mining operation. Mined ore will be heap leached and the copper will be extracted using conventional solvent extraction and electrowinning (SX-EW) process technology to produce high-quality cathode copper. M3 has estimated life of mine average annual cathode copper production of 68 million pounds at a cash operating cost of $1.20 (U.S.) per pound of copper. The initial capital cost is estimated at $209-million (U.S.) and includes the construction of a co-generating sulphuric acid/power plant.
Stingray is actively pursuing project financing alternatives while continuing to develop the El Pilar project toward mine construction. The corporation is well financed with roughly $15.9-million in working capital. Basic engineering of the co-generating sulphuric acid/power plant by Aker Chemetics is under way (see news release 2009-05). Stingray is proceeding internally with basic engineering related to several other areas of the proposed operation as well as working with its consultant to acquire the necessary permits for the project.
Peter Mordaunt, PGeo, is the qualified person responsible for the technical content of this release.