Noranda eyes El Pachon (July 09, 2001)

Vancouver — In an effort to increase its mining exposure in South America, Toronto-based Noranda (NRD-T) has signed a letter of agreement with Montreal-based Cambior (CBJ-T) and Bolivia’s Comsur to acquire the El Pachon copper deposit, situated on the border between Chile and Argentina.

The price of the acquisition is US$30 million, with the final US$2 million payable four years after the deal closes, or when a production decision is made.

Says Noranda President David Kerr: “This acquisition will boost our copper-mining potential quite significantly in South America, close to our existing mining and smelting operations in Chile.”

Cambior and Comsur each hold an equal stake in the project, which hosts reserves of 880 million tonnes grading 0.62% copper. Cambior, which is unloading its non-gold assets, says the deposit is minable by open-pit methods.

The deal remains subject to a 2-month period for legal and financial investigation.

Noranda recently has been acquiring projects in Chile, as well as advancing the large Antamina copper-zinc mine in Peru. Through its 55% stake in Falconbridge (FL-T), the company acquired the 60,000-tonne-per-year Lomas Bayas copper mine, in northern Chile. Also, Noranda is carrying out advanced exploration work at the El Morro copper project, in the same country.

The company has a 33.75% interest in Antamina, as well as a 100% stake in Chile’s Altonorte copper smelter, which is undergoing a major expansion.