Minera Rayrock announces production plans for Ivan

The Ivan copper project in northern Chile is to enter production, Minera Rayrock (TSE) has announced.

he junior expects start-up to commence by mid-1994 at about 22 million lb. copper cathode per year and at an average cost of US56-59 cents per lb. Development costs, including working capital, will be an estimated US$31.6 million. Minera has used equity financing to raise $28.7 million for the project. Debt financing, to be arranged under the terms of a US$18-million commitment letter from the Chase Manhattan Bank of Canada, will also be used. Engineering design work of the Ivan plant is under way and work on the decline portal for the underground mine should begin in September. Condemnation drilling on the mine and plant site is complete. Minera’s major shareholder is Rayrock Yellowknife Resources (TSE), which has a 45% fully diluted equity interest (a 58% voting interest). Other shareholders include J.P. Morgan Investment Management and Morgan Guaranty Trust Co. of New York, which, combined, own (in trust) about 33% of the Minera’s subordinate voting shares (a 6.6% voting interest). The two New York companies acquired the shares for investment purposes on behalf of various clients.