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Abacus Mining and Exploration Corp V.AME

Alternate Symbol(s):  ABCFF

Abacus Mining & Exploration Corporation is a Canada-based mineral exploration and mine development company focused on copper and gold in British Columbia (B.C.) and Nevada. The Company’s main asset is a 20% ownership interest, together with KGHM Polska Miedz S.A. (80%), in the proposed copper-gold Ajax Mine located southwest of Kamloops, B.C., which has undergone a joint provincial and federal environmental assessment process. The Ajax Project comprises eight Crown grants, including the Ajax East and West pits. The Company is also engaged in the process of acquiring a 100% interest in the Willow copper-gold property located near Yerington, Nevada, and it also controls the contiguous Nev-Lorraine claims subject to a ten-year lease agreement. The Willow property is located approximately 65 kilometers southeast of Reno and approximately 13-kilometer due west of Yerington, Nevada, in the Buckskin Mountain Range. Its porphyry copper deposits are Yerington, Ann Mason, Bear and MacArthur.


TSXV:AME - Post by User

Comment by sesses3on Mar 03, 2012 2:06pm
157 Views
Post# 19622422

RE: RE: RE: Canadian Website on AME NR's ...

RE: RE: RE: Canadian Website on AME NR's ...

The deadline is April 4, see the bottom of page 21 in KGHM's results for Q4 2011: https://www.kghm.pl/_files/Report/QSr_4_2011ang.pdf

KGHM's supervisory board apparently meets in the middle of this month, so that's likely when a decision will be made. By then the acquisition of QuadraFNX will also have closed, and they now also know the effects of the new Polish mining tax (which was voted into effect friday).

If KGHM is serious about their strategy of increasing copper production, they'll continue with Ajax. On the other hand, the Polish government still has final say over what happens at KGHM, and they seem to want to extract as much cash as possible (whether through dividends or the new mining tax). Hence they may decide to dump Ajax to lower cap-ex requirements, even if KGHM's management would prefer to keep it.

Still, the cost of exercising the option is little more than pocket change for KGHM, so I'd expect them to go ahead and then perhaps put the project on hold later on if they need to preserve cash.

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