AMT consolidates Copper Creek holdings

Tucson, Ariz.-based AMT International Mining (AAI-T) has arranged to buy out Copper Creek partner Broken Hill Proprietary (BHP-N).

To earn the Australian-based major’s 50% stake in a 1,680-acre portion of the Arizona copper property, AMT will make a cash payment and pay a sliding scale royalty to BHP upon production. AMT will also assume certain reclamation obligations regarding the property. Details of the transaction were not disclosed.

The deal gives AMT full ownership of 90% of the property area, situated east of the town of San Manuel. An adjacent block of claims is held 51% by AMT and 49% by Phelps Dodge (PD-N).

BHP’s decision to relinquish its interest comes in the wake of the company’s US$1.7-billion writedown against corporate earnings for the year ended May 31. Half of the writedowns came from assets acquired through Magma Copper, including the San Manuel mine and smelter complex southwest of the Copper Creek property.

In March, AMT started its second round of drilling at Copper Creek in hopes of delineating new breccia bodies and expanding the minable reserves.

Development of the project is expected to access shallow high-grade mineralization from underground, with the potential of a larger porphyry deposit in the future.