Business
Norsemont Mining Completes Constancia Acquisition Payments
Shares Issued and Outstanding: 70,020,705 TSX: NOM BVL: NOM
About this update from Norsemont Mining Inc.
[{"type":"text","content":"\n\n\n\nShares Issued and Outstanding: 70,020,705\nTSX: NOM\nBVL: NOM\n\n\nTORONTO and LIMA, Peru, June 30 /CNW/ - Norsemont Mining Inc. ("the\nCompany") (TSX: NOM, BVL: NOM) today announced that the Company has made the\nfifth and final Constancia acquisition payment of US$4 million to Mitsui\nMining and Smelting Co. Ltd. ("Mitsui"). This completes an eighteen-month\npayment program under which Norsemont has acquired an undivided 100 percent\ninterest in the Constancia copper-molybdenum-gold-silver project in southern\nPeru.\n\n\nThrough the exercise of an option agreement, Norsemont acquired Rio\nTinto's 70 percent interest in Constancia for a cash consideration of US$13\nmillion. Concurrently, Norsemont entered into an agreement with Mitsui to\npurchase the remaining 30 percent interest in Constancia for a cash\nconsideration of US$9.8 million payable in five tranches. Today's payment of\nUS$4 million represents the final payment to Mitsui.\n\n\nCommenting, Norsemont CEO, Patrick Evans said: "Through an investment of\n$22.8 million, Norsemont has acquired full control over a project with a net\npresent value estimated at $530 million. This has been achieved without have\nto sell any portion of Constancia's future metal off-take. In addition, we\nhave purchased the surface rights over approximately 4,000 hectares at the\nConstancia project, which is of significant strategic benefit for the\nproject's future development."\n\n\nNorsemont is currently completing the Constancia feasibility study, the\nresults of which are expected to be released during the coming quarter. In\naddition, the Constancia environmental and social impact assessment remains on\nschedule for completion by the end of 2009. Permitting for the Constancia\nproject is expected to take approximately six months.\n\n\nFollowing the successful completion of the recent rights issue, Norsemont\nis also preparing to recommence exploration drilling on the prospective\nPampacancha copper-gold project, which is located 2 kilometres south-east of\nthe Constancia deposit. Drilling at the recently discovered Chiloroya South\ndiscovery, located 5 kilometres south of Constancia, will commence as soon as\nthe required permits have been issued. These discoveries are expected to\nsupport the Company's vision to increase the global Constancia resour...