Cap­stone Min­ing places Minto on care and main­te­nance

Stockwatch Daily - - FRONT PAGE - Mr. Dar­ren Py­lot re­ports

CAP­STONE MIN­ING Corp. and Pem­bridge Re­sources PLC have elected to ter­mi­nate the agree­ment for the sale of the Minto mine. Due to un­favourable eq­uity mar­ket con­di­tions, Pem­bridge has been un­suc­cess­ful in com­plet­ing the fi­nanc­ing re­quired to com­plete the trans­ac­tion. Ad­di­tion­ally, to pre­serve Minto’s value, Cap­stone is putting Minto on tem­po­rary care and main­te­nance while con­tin­u­ing to ex­plore value-max­i­miz­ing al­ter­na­tives, in­clud­ing dis­cus­sions with Pem­bridge and other po­ten­tially in­ter­ested par­ties.

Min­ing op­er­a­tions will cease im­mi­nently, with milling op­er­a­tions ex­pected to be com­pleted in the next few weeks once the cur­rent ore stock­pile is pro­cessed. Costs to place the mine on care and main­te­nance are es­ti­mated to be ap­prox­i­mately $5-mil­lion (U.S.) in each of 2018 and 2019, with the con­tin­u­ing costs ex­pected to be un­der $4-mil­lion (U.S.) an­nu­ally there­after for en­vi­ron­men­tal com­pli­ance and other ac­tiv­i­ties. Ap­prox­i­mately 200 em­ploy­ees and con­trac­tors will be af­fected. Minto will re­tain a core team of em­ploy­ees to over­see the site and meet en­vi­ron­men­tal mon­i­tor­ing and le­gal obli­ga­tions dur­ing the care and main­te­nance phase.

“The de­ci­sion to put Minto on care and main­te­nance while we seek al­ter­na­tives is to pre­serve and max­i­mize its value,” said Dar­ren Py­lot, pres­i­dent and chief ex­ec­u­tive of­fi­cer of Cap­stone. “The team will en­sure Minto can be restarted ef­fi­ciently and safely once the cop­per and eq­uity mar­kets im­prove. Minto has been an im­por­tant part of Cap­stone’s his­tory, and we thank the team at Minto for their com­mit­ment and ded­i­ca­tion.”

About Cap­stone Min­ing Corp.

Cap­stone Min­ing is a Cana­dian base me­tal min­ing com­pany fo­cused on cop­per. The com­pany’s two pro­duc­ing mines are the Pinto Val­ley cop­per mine lo­cated in Ari­zona, United States, and the Coza­min poly­metal­lic mine in Za­cate­cas state, Mex­ico. In ad­di­tion, Cap­stone has the large-scale, 70-per-cent-owned cop­per-iron Santo Domingo de­vel­op­ment project in Re­gion III, Chile, in part­ner­ship with Korea Re­sources Corp.; the Minto cop­per mine in Yukon, Canada, cur­rently on care and main­te­nance; as well as a port­fo­lio of ex­plo­ration prop­er­ties.

We seek Safe Har­bor.

Ge­orge Les­lie Brack, Robert Joseph Gal­lagher, Jill Veron­ica Gar­diner, Kal­i­das V Mad­havpeddi, Yong Jun Park, Dale Can­field Pe­niuk, Dar­ren Murvin Py­lot, Richard Nor­man Zim­mer

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