Vancouver, British Columbia -- (May 10, 2010) Abacus Mining & Exploration Corporation ("Abacus" or the "Company") (TSX VENTURE: AME) is pleased to announce that it has closed the private placement ("Private Placement") with KGHM POLSKA MIEDŹ S.A. ("KGHM") previously announced on May 4, 2010 for gross proceeds of CDN $4,500,000.
KGHM purchased 15,000,000 common shares of Abacus at a price of CDN $0.30 per share. The shares are subject to a statutory hold period in Canada which expires on September 8, 2010. As a result of the Private Placement, KGHM now holds approximately 8.75% of the issued and outstanding common shares of Abacus.
The proceeds of the Private Placement will be used to help fund exploration and ongoing project expenditures on Abacus' Afton-Ajax copper-gold project, and for general corporate purposes.
On Behalf of the Board,
ABACUS MINING AND EXPLORATION CORPORATION
President and Chief Executive Officer
For further information, please contact:
Donna Yoshimatsu, Director of Investor Relations firstname.lastname@example.org, or
Tim Mikula, Investor Relations 866 834 0301 email@example.com
Abacus is an exploration and development company with a 43‐101 compliant positive preliminary economic assessment report (announced June 22, 2009) for its Ajax copper/gold project located 10 kilometres southwest of Kamloops, British Columbia. The report contemplates a 60,000 tonne per day operation producing an average of approximately 110 million pounds of copper (approx. 50,000 tonnes) and 100,000 ounces of gold in concentrate annually. Sensitivity analyses approximating metal prices (US$3.00 per pound copper and US$1,000 per ounce gold) in the assessment indicate a NPV of $1.46 billion discounted 8% over a 23 year mine life, with an IRR of 35.4%, cash costs of $0.90 per pound copper, and payback of 2.0 years. The Ajax extension remains open along strike and at depth. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
Eco Tech Laboratory Ltd. of Kamloops, B.C., completed all of Abacus' analytical work on the aforementioned drill project. A quality‐control program, using specific standards and blank samples is in place. Robert G. Friesen, P.Geo., the Company's Senior Geologist, is the Qualified Person responsible for the design and conduct of the work performed.
KGHM Polska Miedź S.A. is the ninth largest producer of copper in the world, with annual production of over 500,000 tonnes (approx. 2.7% of global production) and the world's third-largest silver producer, with annual output of around 1,100 tonnes (approx. 7% of global production). A fully integrated producer of high quality copper in cathodes, wire rods, oxygen-free copper and silver-bearing copper rods and round billets, the KGHM Group comprises over 30 companies encompassing mines, copper smelters, ore enrichment plants and hydrotechnical facilities providing auxiliary support for the core production business and telecommunications. KGHM Group has been mining and processing copper for almost 50 years and employs over 27,000 people. KGHM's shares trade on the Warsaw Stock Exchange with a market capitalization of over US$7 billion.
For more information, please contact
Donna Yoshimatsu, Director of Investor Relations firstname.lastname@example.org,
Tim Mikula, Investor Relations 866‐834‐0301 email@example.com
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.
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