Prince George, B.C.- The Mount Milligan Mine project has cleared another hurdle as the Board of Directors has approved a decision to proceed to construction on the Mt. Milligan Project.

Robert Pease,  President and CEO of Terrane Metals Corp.  has announced  An Option Agreement  with Goldcorp Inc. ("Goldcorp") which provided for a one-time opportunity to convert their equity interest in Terrane into a participating joint venture has expired.

As part of the Agreement, Terrane obtained a $40 million credit facility guaranteed by Goldcorp, which has been extended to May 7, 2010. The Company will now consider financing alternatives for the recently approved $172 million 2010 construction budget.

"Mt. Milligan is an outstanding asset," said Chuck Jeannes, Goldcorp President and Chief Executive Officer. "Goldcorp believes that the best way to continue participating in the bright future of this project is through our equity interest in Terrane. We look forward to our continued involvement and to sharing in the future success of this exciting enterprise.

 

Pease states  "With project ownership now clarified, Terrane will move forward with financing alternatives to develop the Mt. Milligan project. Terrane shareholder value is firmly underpinned by a six million ounce, low-cost and construction-ready reserve."

Mt. Milligan will be a conventional truck-shovel open pit mine with a 60,000 tonne per day copper flotation process plant.

 

The most recent  study forecast average annual production of 262,100 oz gold and 89 million lb copper for the first six years of a 22-year mine life.

 

The project will provide about 400 direct permanent jobs and significant long-term economic benefits for the region.