Lumina Copper Corp LCPRF

News

[elmothefearless]

Ok..... this is brilliant. I bought shares last week in LCC @ $5.80. Why? Because the NSR with Teck is worth MINIMUM $50 million TODAY. I ran the numbers and the bare minimum, discounted to today (before the mine is built), at $4.00 copper prices, 90% recovery factor with only 9 billion lb's CU (original estimate, but it's higher now) is ~$51 million. Which meant LCC was trading, net of cash and this NSR, at ~$175 million with a 9 billion+ copper resource, 3 million oz's gold, 300 million lb's moly.
This is the cheapest copper junior on the market in a stable mining jurisdiction. Brilliant move by management.

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 03/24/11 -- Lumina Copper Corp. (TSX VENTURE: LCC) ("Lumina" or the "Company") is pleased to announce that the Company intends to complete a strategic reorganization of its business. Lumina's royalty interests and certain non-core assets will be transferred to a newly incorporated company to be called Lumina Royalty Corp. Shareholders of the Company will receive shares in Lumina Royalty Corp. in proportion to their shareholding in Lumina.
Lumina Royalty Corp. will hold the following key assets:
-- A 1.5% Net Smelter Return ("NSR") royalty on Teck Resources Ltd'sRelincho copper/molybdenum advance development project located in RegionIV, Chile.-- A 1.5% NSR royalty on Los Andes Copper Limited's Vizcachitascopper/molybdenum project located in Region V, Chile.-- A 1.08% NSR royalty on Lumina Copper Corp.'s Taca Tacacopper/gold/molybdenum project located in Salta Province, Argentina.-- A copper royalty, including the advance royalty payments (excluding theMay 2011 US $4 million payment), on Coro Mining Corp's San Jorgecopper/gold/molybdenum project located in Mendoza Province, Argentina.-- A 1.5% NSR royalty on all metal production, other than copper, on CoroMining's San Jorge copper/gold/molybdenum project.
The Taca Taca copper/gold/molybdenum project will remain in Lumina Copper Corp. along with the necessary cash to fund the Company's ongoing exploration and development program.
It is intended that, as part of the reorganization, Lumina's current shareholders will receive shares of Lumina Royalty Corp. by way of a return of capital on their shares of the Company. The return of capital will require the approval of the Company's shareholders at a shareholders meeting, which the Company expects to hold by the end of May 2011. Lumina has no plans to seek a public listing for Lumina Royalty Corp.'s shares in the near term.
The Company is completing the reorganization in order to focus on the development of its Taca Taca copper/gold/molybdenum project. The Taca Taca project, comprising approximately 2,500 hectares, is located in the Puna region of north western Argentina in Salta Province, approximately 230 kilometres west of the provincial capital of Salta and 90 kilometres east of the world's largest copper mine, Escondida. In January, the Company announced that it had initiated a 43,000m drill program and a comprehensive engineering and metallurgical testing program at Taca Taca. Both programs are expected to be completed by the end of 2011.
On October 9, 2008, Lumina announced it had received an independent National Instrument 43-101 ("NI 43-101") compliant mineral resource estimate for the Taca Taca project that at a 0.4% copper equivalent cut-off contained inferred mineral resources of 841 million tonnes grading 0.64% copper equivalent, containing 8.71 billion pounds of copper, 2.97 million ounces of gold and 333.70 million pounds of molybdenum(1).
Additional information on the Taca Taca project, including the NI 43-101 technical report "Amended Taca Taca Technical Report" dated January 22, 2010 by Robert Sim, P.Geo., can be found on Lumina's website (www.luminacopper.com) and on SEDAR (www.sedar.com).
Leo Hathaway, P.Geo., Vice President, Exploration and the Qualified Person (as defined by NI 43-101) for the Taca Taca project, has reviewed and approved the content of this press release.
(1) The copper equivalent cut off grade used in the calculation of the mineral resource estimate was determined using US$1.50 / lb copper, US$600 / oz gold and US$6.00 / lb molybdenum and was not adjusted for metallurgical recoveries as these remain uncertain. The formula used in the calculation was as follows: CuEQ = Cu% + (Au g/t x 0.583) + (Mo% x 6).
LUMINA COPPER CORP.
David Strang, President & CEO

[krogh]

But why did they do it? They must be preparing for a sale of Taca Taca, I hope. But what does this reorganization achieve? Why not just sell Taca Taca and let the remainder be the royalty company. Why create a royalty companynow? Do they plan to sell the royalty company to someone? But, in that case, they could just sell the royalties if they wanted to. 

[krogh]

Does anyone know if this team has more properties to explore after Taca Taca. 

[elmothefearless]

Yes, because they're preparing for a sale of Taca Taca."Why not just sell Taca Taca and let the remainder be the royalty Company".Uhm, because that's not how things work.  Go read up on the CEO's past 4 sales.  Each time he sells, he rolls over the other properties/royalties into a new company.  This is how it has to be don for legal purposes.  Anyway

[yopeace12]

Nice posts Elmo.  I agree that they will probably list the royalty company once they sell Taca Taca.  This management team is the best in the business., no doubt about it.  If you guys are interested in another company these guys operate, they also own 35% of the stock,  I would urge you to take a look an Anfield Nickel Corp.  Obviously, different resources but hopping on

[elmothefearless]

Wish I found this Company sooner."Mr. Strang is a graduate of Stanford University, BSc, Applied Earth Sciences. Mr. Strang was previously CEO & President of Global Copper Corp (Sold to TeckCominco), Vice President, Corporate Development for Northern Peru Copper Corp (sold to China Minmetals/Jiangxi Copper), CEO & President of Lumina Resources Corp (Sold to Western Copper Corp) and