28th Jan 2014 09:13
LONDON (Alliance News) - First Quantum Minerals Ltd Tuesday said it is conducting a review of the measured and indicated estimate used for the Cobre Panama project in Panama.
The copper producer said that, following its acquisition of Inmet Mining Corp in March 2013, it has decided to review the resource of 3.27 billion tonnes, inclusive of reserves, reported by Inmet in May 2010.
The company said the revised project will have an installed capacity of roughly 70 million tonnes per year for the first 10 years, 17% higher than the Inmet plan, with further expansion up to 100 million tonnes per year beyond the tenth year.
First Quantum said on the basis of the current resource estimate and the planned installed capacity, the project would produce an average of roughly 320,000 tonnes of copper yearly on a life-of-mine basis, roughly 20% higher than the Inmet plan.
The company also noted an average life of mine by-product production of 100,000 ounces of gold, 1.8 million ounces of silver and 3,500 tonnes of molybdenum. It said the average copper grade for the first 10 years would be 0.5%.
First Quantum also said it has signed a mandate letter for a USD2.5 billion five-year term loan and revolving facility with Standard Chartered Bank and BNP Paribas.
The company said it will use the funds to support the company's extensive capital program and for general corporate purposes.
First Quantum shares were up 0.3% to 1,074.10 pence in early trading Tuesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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