Mercator Minerals Ltd MLKKF

Metals & Mining Industrial Metals & Minerals

Mercator Minerals, Ltd. is a mineral resource company engaged in the mining, exploration, development and operation of its mineral properties in Arizona, United States and Sonora, Mexico. The Company’s principal assets are the 100% owned Mineral Park Mine, a producing copper-moly mine located near Kingman, Arizona and the El Pilar Project located in Sonora Mexico. The primary focus of the Company is the expansion of copper production and molybdenum concentrate production at the Mineral Park Mine, and the development of the El Pilar Project. Its other projects include The El Creston molybdenum property, which is 175 kilometers south of the United States Border and 145 kilometers northeast of the city of Hermosillo; Molybrook, which is located on the south coast of Newfoundland, and Ajax, which is located 13 kilometers north of Alice Arm, British Columbia.

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Mercator Minerals Ltd

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Post by Sharpie009on Jan 29, 2009 7:24pm

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Post# 15738755

Relevant Mercator Info

Copper $1.44 current price
Moly $9.75 current price

Base Case model $1.50 copper was used
$10.00 moly was used

Under base case scenario economics were robust.

IRR of 51% and quick payback.

Caveat is will Mercator be in violation of loan covenant starting in the second quarter of this year. If they are in violation a cash sweep will be triggered and any free cash flow paid back to the noteholders. That is the danger here.

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