VANCOUVER, B.C. June 11, 2009 - Abacus Mining & Exploration Corporation (the "Company") (TSX.V:AME) announces that it has signed an agreement (the "Amending Agreement") with Teck Resources Limited and Afton Operating Corporation (collectively "Teck") amending the Asset Purchase Agreement between the parties dated November 25, 2005, and amended February 29, 2008, May 26, 2008, and December 22, 2008 (collectively, the "Asset Purchase Agreement") covering certain assets located in the copper-gold rich Afton camp.
Under the Asset Purchase Agreement, Abacus purchased tailings storage area, associated permits including water rights, and other assets located near the Company's 100% owned Afton properties, including the Ajax property. The acquisition of these assets benefits the Company with a 'brownfield' infrastructure providing an early and cost efficient start on development of the Ajax property.
Under the terms of the Amending Agreement, Teck will receive additional common shares of the Company sufficient to increase its ownership interest in the Company to 19.99%, and could receive an additional cash payment of up to $5 million. The number of additional shares and the amount of additional cash is dependent of the market value of the Company at the time the assets are transferred from Teck to the Company (the "Transfer Date"). The additional cash payment, if any, is payable eighteen months after the Transfer date. The Transfer date could be as early as July 31, 2009.
The Amending Agreement replaces provisions in the original Asset Purchase Agreement which could have caused the Company to be required to issue additional shares on the Transfer Date that could have led to excessive dilution to existing shareholders under circumstances unforeseen by either party. This amendment more clearly defines the payment terms and eliminates that potential exposure.
"We are extremely pleased that Teck will continue as a significant shareholder in Abacus, states Doug Fulcher, President of Abacus. We believe it evidences the upside potential of our Ajax copper/gold project. We are nearing completion of the Preliminary Economic Assessment and it is expected to be released shortly."
The foregoing is subject to regulatory acceptance.
Abacus Mining & Exploration is a junior exploration and development company with measured and indicated resources at the Ajax property totaling 365 million tonnes grading 0.31% copper and 0.20 g/t gold using a 0.20% copper equivalent cutoff. The 43-101 compliant resource (January 14th, 2009) prepared by AMEC Americas Limited, demonstrates the significant size of the Ajax area with approximately 2.5 billion pounds of copper and 2.3 million ounces of gold. Abacus is now in the process of completing a preliminary economic assessment ("PEA") that contemplates a 60,000 tonne per day operation. The Ajax deposit remains open along strike and at depth.
On Behalf of the Board
ABACUS MINING & EXPLORATION CORP.
President and Chief Executive Officer
Contact: Tim Mikula, Investor Relations 866-834-0301
This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address events or developments that Abacus Mining and Exploration Corp. (the "Company") expects to occur, are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in the forward-looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, and continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. The Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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