Noranda eyes El Pachon (June 28, 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 100% of the El Pachon copper deposit on the border between Chile and Argentina.

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

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

Cambior and Comsur each hold an equal stake in the project, which hosts mining 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 two-month legal and financial due diligence.

Noranda has recently been acquiring projects in Chile, as well as advancing the large Antamina copper-zinc mine in Peru.

Through its 55%-held Falconbridge (FL-T), the company has acquired the 60,000-tonne-per-year Lomas Bayas copper mine in northern Chile.

Noranda is carrying out advanced exploration work at the El Morro copper project, also in Chile.

The company also has 33.75% of Antamina and 100% of Chile’s Altonorte copper smelter, which is undergoing a major expansion.