Arimetco strikes deal to sell copper production to Billiton

Shares of Tucson-based Arimetco International (TSE) recently rose 25 cents to $3.35 after the company entered into a 5-year copper sales agreement with New York metals trader Billiton Metals. Under terms of the agreement, Billiton will purchase 100% of the cathode copper produced at Arimetco’s Yerington and Johnson mines in Nevada and Arizona. The marketing deal will permit the company to expand its operations by constructing another SX-EW plant at Yerington with a capacity of 45,000 lb. per day.

Construction of the new plant and leach pads is expected to reach completion by August with commercial production beginning in September. The completed facility will increase Yerington’s production capacity to 65,000 lb. per day, up from the current 20,000 lb. per day.

All permits for the project have been granted by the Nevada Department of Environmental Quality, and an adequate leach pad area for the expanded plant has also been permitted. The new plant is designed to allow for eventual expansion to 80,000 lb. per day, Arimetco said. The company has nearly 21 million shares issued and outstanding on a fully diluted basis.