Mt. Milligan Mine Sold to Thompson Creek Metals

By 250 News

Prince George, B.C.- Terrane Metals has sold its Mt.Milligan Mine to  Thompson Creek Metals out of Denver, Colorado.

In a  conference call  this morning,  Thompson Creek’s CEO  Kevin Loughry says Thompson is  paying  $650 million dollars  in cash and shares  for  the Terrane  assets which include Mt. Milligan, the Berg copper-molybdenum-silver deposit in B.C., an interest in the Howard's Pass in the Yukon and an interest in the Maze Lake gold project in Nunavut.

In addition,  Goldcorp which has  control of  58% of Terrane’s outstanding shares, will  be paid $240.5 million in cash and $13.9 million Thompson Creek shares  which  is about 8% per cent of the company. Goldcorp has already agreed to  support the  transaction.

When the deal is complete,  Thompson Creek will have the Endako Mine, the Mt, Milligan project which is  about 150 km northeast of Endako and the  Berg  project which is about 150 kilometers south west of Endako and which could be in production  within  5 to 6 years.

Loughry says this acquisition will diversify Thomson Creek   "The acquisition of Terrane fits well in our strategic growth plan, providing us with clear production and revenue growth while diversifying our commodity exposure, all in a project with mining and milling processes, and a regulatory environment, with which we have considerable experience.”

The only  permit that has yet to be  issued for the construction of Mt. Milligan  is  from the Fisheries department.  Road construction is already underway, and  the intention is that this fall,  the  area for the tailings pond will be cleared ,  to be prepared for  construction  next year.

Rob Pease, President and Chief Executive Officer of Terrane, stated: "We are pleased to join forces with Thompson Creek. Their financial depth, combined with the Royal Gold transaction, provides a clear path to complete funding of Mt. Milligan. Combined with their proven development and operating capabilities, this transaction has the opportunity to unlock the value of Mt. Milligan for all shareholders. Thompson Creek is committed to responsible development and mining and has an excellent track record of working cooperatively with host governments and communities wherever they operate, including British Columbia."

Chuck Jeannes, President and Chief Executive Officer of Goldcorp Inc. ("Goldcorp"), stated: "The Terrane management team has done an outstanding job in advancing Mt. Milligan towards development. The transaction with Thompson Creek provides a meaningful cash return for Terrane shareholders, while providing an opportunity to participate in the future success of Mt. Milligan through a combined, diversified, high growth base metals producer."

Mt. Milligan will be a conventional truck-shovel open pit mine with a 60,000 tpd copper flotation process plant. The average annual production over the 22 year estimated mine life is expected to be 81 million pounds of copper and 194,000 ounces of gold. Mt. Milligan is expected to provide approximately 400 direct permanent jobs and significant long-term economic benefits for the region.

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