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| | January 08, 2010
Mt. Milligan To Proceed To Construction Goldcorp Maintains Share Ownership And Extends Credit Facility
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| | Vancouver, British Columbia: Robert Pease, President and CEO of Terrane Metals Corp. ("Terrane" or the "Company") (TRX: TSX-V), is pleased to announce the Board of Directors has approved a decision to proceed to construction on the Mt. Milligan Project (the "Project"). An Option Agreement (the "Agreement" see press release date July 9, 2008) with Goldcorp Inc. ("Goldcorp") (GG: NYSE;G: TSX) 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 $172 million 2010 construction budget.
"Mt. Milligan is an outstanding asset," said Chuck Jeannes, Goldcorp President and Chief Executive Officer. "Goldcorp believes that the best way to continue participating in the bright future of this project is through our equity interest in Terrane. We look forward to our continued involvement and to sharing in the future success of this exciting enterprise.
Robert Pease, President and CEO, Terrane stated: "With project ownership now clarified, Terrane will move forward with financing alternatives to develop the Mt. Milligan project. Terrane shareholder value is firmly underpinned by a six million ounce, low-cost and construction-ready reserve."
Mt. Milligan will be a conventional truck-shovel open pit mine with a 60,000 tpd copper flotation process plant. A 2009 Feasibility Update Study (see press release October 13, 2009) forecast average annual production of 262,100 oz gold and 89 million lb copper for the first six years of a 22-year mine life. Net of a copper credit, gold production cash cost is negative US$ 8 per oz, assuming an average copper price of $2 per pound. The Project will provide about 400 direct permanent jobs and significant long-term economic benefits for the region.
About Terrane Metals Corp.
Terrane Metals Corp. is an exploration and mine development company focused on the development of the Mt. Milligan copper-gold and Berg copper-molybdenum-silver projects in British Columbia, Canada.
TERRANE METALS CORP.
Signed "Robert Pease"
Robert Pease, P.Geo, FGAC
President and CEO
For Further information contact:
Ryan King, Investor Relations
(604) 681-9930 Phone
www.terranemetals.com
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
Cautionary Note Regarding Forward Looking Statements
Except for the statements of historical fact contained herein, the information presented in this News Release constitutes "forward-looking statements" as such term is used in applicable Canadian laws. These statements relate to analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management. In particular, statements concerning Mineral Resource and Mineral Reserve estimates should be viewed as forward-looking statements to the extent that they involve estimates of the mineralization that will be encountered if the property is developed. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects" or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans, "estimates" or "intends", or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and should be viewed as "forward-looking statements". Such forward looking statements, including but not limited to, those with respect to the price of metals, the amount of estimated mineralization and of contained metals and the timing of and possible outcome of pending economic evaluations and other factors and events described in this News Release, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such risks and other factors include, among others, the actual results of exploration activities; variations in the underlying assumptions associated with the estimation or realization of Mineral Resources and Mineral Reserves, the conclusions of economic evaluations and possible variations in ore grade or recovery rates; costs and timing of the development of new deposits; availability of capital to fund programs and the resulting dilution caused by the raising of capital through the sale of shares; accidents, labour disputes and other risks of the mining industry including without limitation those associated with the environment, delays in obtaining governmental approvals, permits or financing or in the completion of development or construction activities, title disputes or claims limitations on insurance coverage. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements contained in this News Release and in any document referred to in this News Release.
Forward looking statements are made based on management's beliefs, estimates and opinions on the date the statements are made and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable law. |
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