The Directors of Abacus Mining and Exploration Corp. (TSX.V:AME) (the "Company") are pleased to announce that further to its announcement of May 17th, 2005, the due diligence and valuation of the Afton mill building, tailings storage areas, various permits and other infrastructure near Kamloops, British Columbia is underway. Knight Piésold Ltd. and Beacon Hill Consultants Ltd. have been retained to conduct the review and it is expected to be completed by the middle of July.
Doug Fulcher, President of Abacus states, "We are very pleased to have retained Knight Piésold and Beacon Hill to complete the due diligence review. The review will provide us with an accurate assessment of the mill building, tailings area, permits and replacement costs which should add significant value to the Company. Moreover, we will get a clear idea of the benefit to the Company of the reduced development schedule and capital costs. Overall, the acquisition of Teck Cominco Limited's Afton mill and other infrastructure will be a very strategic move for Abacus and positions us well in the Afton mine camp."
To complete the due diligence, the buildings and the tailings storage facility will be assessed on condition, value and use for potential production for up to 25,000 tons per day operation. All permits and environmental issues will be reviewed and it will also be determined if any additional permits are required for mining operation. In addition, a cost benefit analysis will be completed that takes into account the value of the various facilities and storage area under a conceptual mine plan.
The Company owns a 100% interest in certain mineral properties in the Afton area and has signed a Letter of Intent with Teck Cominco Limited (TSX:TEK.MV.A and TEK.SV.B) ("Teck Cominco") for the purchase of Afton Operating Corporation's milling and processing buildings, tailings storage areas, associated permits and other infrastructure. The Company will issue 18.5 million shares in various stages over a two year period and pay two $5 million cash payments to Teck Cominco. The first payment of $5 million is due and payable on the first anniversary after signing the formal agreement and the second $5 million is due on the second anniversary. When the foregoing payments have been made, Teck Cominco will relinquish its back-in rights in respect of the Company's mineral properties. Completion of the transaction is subject to due diligence, definitive documentation, receipt of necessary regulatory approvals and customary conditions of closing. Upon completion of closing, Teck Cominco will become a significant shareholder of the Company.
On Behalf of the Board,
ABACUS MINING AND EXPLORATION CORPORATION
Paddy Nicol, MBA
The TSX Venture Exchange has not reviewed and does not accept the responsibility for the adequacy or accuracy of this news release.
You can view the Next News Releases item: July 6, 2005,Afton Area Properties - Rainbow And Dm/Audra/Crescent Resource Summary
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