Constellation Copper reloads treasury (August 18, 2005)

Vancouver – Constellation Copper (CCU-T) has closed a $14.4-million financing with funds earmarked for further exploration and expansion at its Lisbon Valley project in southeastern Utah.

The soon-to-be mid-tier copper producer placed almost 16 million special warrants at 90 apiece in a brokered offering through a syndicate of underwriters led by Sprott Securities. Each special warrant is exchangeable for one share and one-half a warrant. Every full warrant is exercisable at $1.20 for two years.

Constellation intends to use the proceeds for continued drilling at its Flying Diamond copper deposit, located about 7 km south of the Lisbon Valley mine. A portion of the funds will also be allocated to boost production capacity by 10% at Lisbon Valley operations.

Mining recently commenced at Lisbon Valley with stripping of waste rock underway. The fleet of largely new heavy equipment has been assembled and is now fully operational. Full commercial operation of the crushing plant is anticipated by late-August, leading to acid leaching of stacked ore in September and cathode copper production beginning in mid-November.

Lisbon Valley will be an SX-EW (solvent extraction-electrowinning) copper operation, scheduled to produce over 50 million pounds of copper annually at estimated cash costs of about US50 per pound.

The three main deposits (Sentinel, Centennial and GTO) comprising Lisbon Valley hosts proven and probable reserves of 33 million tonnes grading 0.52% copper with a stripping ratio of 2.25-to-1.

In addition to its Utah mine, Constellation also holds the advanced stage Terrazas copper-zinc project in Chihuahua State, Mexico, and the San Javier del Cobre project in Sonora, Mexico.