Aug 19 2013
AQM ("AQM " or the "Company") is pleased to announce the completion of the transaction with Mitsubishi Materials Corporation ("MMC") as announced in the Company's press release of July 2, 2013. MMC has invested US$22.60 million and committed an additional US$15.07 million to acquire a 40% interest in the Company's Peruvian subsidiary Minera AQM Copper Peru S.A.C. ("MAQM").
MAQM owns the Company's share of the Zafranal Project in a 50/50 joint venture company, Compañia Minera Zafranal (ʺCMZʺ), between MAQM and Teck Resources Limited. This investment results in MMC and AQM having indirect interests of 20% and 30% respectively, in the Zafranal Project in southern Peru.
The Company and MMC have entered into a joint venture shareholders' agreement pursuant to which MMC and the Company will proportionately contribute to MAQM's 50% interest in the Zafranal Project. All major decisions regarding MAQM and the ongoing development of the Zafranal Project will require the approval of both MMC and the Company. During the initial carried period where MMC has agreed to fund the additional US$15.07 million, MMC will have a casting vote on all major decisions.
The investment of US$37.67 million is expected to more than cover MAQM's share of the anticipated costs of the proposed Pre-Feasibility and Feasibility Studies for the Zafranal Project (subject to approval by the shareholders of CMZ to initiate such studies). AQM's share of the costs related to such studies will be solely funded from MMC's initial US$22.60 million investment, which is expected to result in the Company holding effectively a carried interest in the Zafranal Project through to a production decision.
Following the carried period, each of MMC and the Company will be required to fund their pro rata share of programs and budgets, or will be subject to dilution.
Mr. Bruce Turner, President and CEO of AQM stated, "We are excited to have this funding in place and to be associated with such a strong partner that is fully aligned with AQM's goal to develop the Zafranal Project."
ON BEHALF OF THE BOARD OF DIRECTORS
Bruce Turner, President and CEO
Source: http://www.aqmcopper.com/