strategic review update and financing
Lumina Copper Announces Update of Strategic Review and $23.75 Million Financing
Press Release: Lumina Copper Corp. –
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct 9, 2012) - Lumina Copper Corp. (TSX VENTURE:LCC) (the "Company") is pleased to report on the status of its strategic review initiated in June 2012. To date Lumina has had and continues to have transaction discussions with a number of major mining companies and has considered other opportunities for shareholder value creation.
Lumina has completed its current phase of drilling at Taca Taca with 129,000 meters of exploration drilling completed. Final assay results are expected in late October. A new National Instrument 43-101 ("NI 43-101") mineral resource estimate is expected to be completed in late November and will incorporate approximately 65,000 meters of new drilling completed since the last update in May 2012.
Based upon the updated mineral resource estimate and related metallurgical, engineering and infrastructure studies, a Preliminary Economic Assessment ("PEA") on a mining and milling operation at Taca Taca is expected to be completed during the first quarter of 2013. The PEA will provide additional technical information and the basis for detailed value discussions with prospective companies interested in acquiring Lumina and developing Taca Taca.
To fund the Company''s capital needs through to late 2013 including all remaining costs to complete the PEA (US$2.6 million), repay the US$13 million loan outstanding to Lumina Capital Limited Partnership and for general corporate purposes, the Company has agreed to issue 2.5 million shares to a single, arms-length, party at $9.50 per share for gross proceeds of $23.75 million by way of a non-brokered private placement. The private placement is subject to the approval of the TSX Venture Exchange.
David Strang, Lumina''s CEO said, "The exceptional exploration results over the last two years at Taca Taca will be finalized this fall with a new update of the mineral resource estimate and, early in 2013, a preliminary assessment of the potential economic value of this world-class deposit. Both studies should facilitate realizing superior shareholder value from the strategic review in which we are currently engaged, with the necessary funds in place to finance the plan."