Several mining groups are carrying out due diligence reviews of the assets of Canada Tungsten (TSE), and in particular the company’s advanced copper project near Andacollo, Chile.
The company’s largest shareholder, Cyprus Amax (NYSE), is conducting discussions with as many as four or five parties interested in the sale of its 48.3% interest in Canada Tungsten.
Wayne Lenton, Canada Tungsten’s president, said an announcement of a new major shareholder may be made shortly. In the meantime, the company has commissioned Denver-based Mincorp to carry out a final feasibility study for the copper project. The study should be completed in October. Canada Tungsten and its 30% Chilean partner plan to develop the project as a low-cost, open-pit, heap-leach operation using solvent extraction-electrowinning.
A preliminary study estimates capital costs as being US$55 million, with startup scheduled for 1996. The operation would produce 37 million lb. of high-quality cathode copper per year for 15 years, at an operating cost of US50 cents per lb.
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