The Crested Butte News Serving the Gunnison Valley since 1999
The proposed molybdenum mine on Mt. Emmons has suffered a major setback. The primary partner, Thompson-Creek Metals Inc has pulled out of the project. See the announcement below and pick up a copy of the Crested Butte News this week for more details.
—Mark Reaman
Thompson Creek Terminates Option Agreement with U.S. Energy Corp.
Thompson Creek Metals Company Inc. (“Company” or “Thompson Creek”), a growing, diversified North American mining company, today announced that it has terminated its Option Agreement with U.S. Energy Corp. to acquire an interest in the Mount Emmons molybdenum project located in Gunnison County, Colorado.
“We made the strategic decision to step back from the Mount Emmons project and focus our efforts and resources on our Berg exploration property located in British Columbia,” stated Kevin Loughrey, Chairman and Chief Executive Officer of Thompson Creek. “Berg represents an attractive development project that potentially expands our molybdenum production, but also can further our diversification efforts. The measured and indicated resources for the Berg property include 3.3 billion pounds of copper, 412 million pounds of molybdenum, and 61 million ounces of silver. We have redirected the pre-feasibility funding previously budgeted for Mount Emmons to Berg for an advanced scoping study to be initiated in 2011,” he added.
“In addition to Berg, we are continuing our work on the Endako Expansion Project, which is scheduled for completion later this year, and the construction and development of the Mt. Milligan copper-gold mine, which is expected to commence production in late 2013. Endako and Mt. Milligan are near-term catalysts that we expect will significantly increase revenue, net income and shareholder value. Consequently, we believe it is best to focus our efforts on these three projects and allow U.S. Energy Corp. to develop Mount Emmons as they see fit,” said Mr. Loughrey.
Mr. Loughrey continued, “We are proud to have partnered with U.S. Energy Corp. They have been an excellent partner and we respect the work they have done on the project. We continue to believe that the Mount Emmons molybdenum project is a very good project that presents significant opportunities for the local and state economies.”
The termination of the Option Agreement will have no material impact on the Company’s financial statements.
About Thompson Creek Metals Company Inc.
Thompson Creek Metals Company Inc. is a growing, diversified North American mining company. The Company produces molybdenum at its 100%-owned Thompson Creek mine in Idaho and Langeloth Metallurgical Facility in Pennsylvania and its 75%-owned Endako mine in northern British Columbia. The Company is also in the process of constructing the Mt. Milligan copper-gold mine in northern British Columbia, which is expected to commence production in 2013. The Company’s development projects include the Davidson molybdenum property and the Berg copper-molybdenum-silver property, both located in northern British Columbia. Thompson Creek has approximately 967 employees. Its principal executive office is in Denver, Colorado and its Canadian administrative office is in Vancouver, British Columbia. More information is available at www.thompsoncreekmetals.com.
