Metall completes purchase of Copper Range operation

The purchase by merger deal establishes Metall as a fully fledged operating company with interests in some of Canada’s largest mining concerns, including Teck Corp. (TSE) and Cominco Ltd. (TSE).

It also gives Metall access to proven and probable reserves of about 188 million tons grading 1.08% copper on land owned by Copper Range plus an additional 20 million tons grading 1.49% copper on contiguous leased lands.

Last year, Copper Range produced approximately 92 million lb copper cathode, and approximately one million oz silver byproduct. But production from underground mining operations is expected to increase to 128 million lb over the next three years.

Copper Range’s operating costs are also expected to drop to 65 cents per lb of copper cathode in 1990 from approximately 80 cents per lb this year as a result of increased production and improvements in productivity.

The purchase includes Copper Range’s mine, mill, smelter, power plant and state-of-the-art refinery at White Pine, Mich.

Metall says it has begun to place new operating management both on site at Copper Range and in Toronto. The Michigan company is already receiving technical advice from West German metals giant Metallgesellschaft AG which holds a 62.7% stake in Metall.

The purchase price of $83 million could increase to $98 million if Copper range achieves a specified minimum daily average amount of ore milled in 1989 and specified operating profits in each of 1989 through to 1993.

A new collective bargaining agreement involving Copper Range and the United Steelworkers of America, is tied to specified costs and production targets, Metall said.

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