The Inmet Mining Corporation’s 55 percent owned subsidiary, Cayeli Bakir Isletmeleri (CBI), has entered into an agreement with an affiliate of Teck Cominco to purchase 100 percent of the shares of Teck Cominco's wholly-owned Turkish subsidiary, Teck Cominco Madencilik Sanayi (TCM).
TCM owns the Cerattepe Property which hosts both a high-grade copper deposit and a near surface gold - silver deposit. The Cerattepe Property is located five kilometers north of the city of Artvin in northeastern Turkey and some 200 kilometers by highway from the Cayeli mine owned and operated by CBI.
Consideration for the purchase of the shares of TCM consists of an initial payment of two million dollars payable on closing, a second payment of $4.5 million payable on the earlier of 18 months after closing and the start of commercial production, and a third payment of $4.5 million payable on the earlier of 12 months after the start of commercial production or December 31, 2006, as well as additional deferred payments payable on gold production from the Cerattepe Property.
Teck Cominco has held the Cerattepe Property since 1988 and has completed a total of 33,875 meters of diamond core drilling and carried out substantial feasibility work since 1990 totaling some C$17 million dollars in direct expenditures.
CBI intends to complete a feasibility study based on an initial concept of ramping down to the high-grade copper deposit, annually mining approximately 250,000 tons from underground, trucking the ore to the Cayeli plant site and processing it as a supplement to production from the Cayeli mine.
Inmet is a Canadian based international mining company. Its mining operations and investments produce copper, zinc and gold. The company’s strategy is focused on finding quality base metal reserves. Inmet's operating base consists of four competitive mining operations in Turkey’ Cayeli, Pyhasalmi, Troilus, and Ok Tedi. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
