An exclusivity agreement with an un-named third party is over, and there is no deal for Peru Copper (PCR-T, CUP-X). The news sent the Vancouver-based companys share price down on Tuesday.
In Toronto on May 29 the companys shares fell nearly 17% or $1.13 to $5.53 on roughly 310,000 shares traded.
While the company on the other end of the agreement remains unknown, Peru Copper says the two parties couldnt reach an agreement on price or terms and that the agreement has not been extended.
Peru Copper says its looking at alternatives to further its Toromocho copper project which is situated roughly 140 km east of Lima.
It said such alternatives could include the sale of a portion of the project, the sale of the entire company or developing Toromocho on its own — which would mean raising more capital.
The company recorded a loss of US$1.3 million in the first quarter, compared to a US$1 million loss for the same period in 2006.
It blamed a US$400,000 increase in management fees and salaries from the previous year, which it says, was due to a severance payment made to a retired manager and management bonuses.
Also hitting its bottom line was stock-based compensation and travel expenses, which grew by US$100,000.
The company acquired Toromocho back in 2003 after making an agreement with state-owned Empresa Minera del Centro del Peru. It plans to have a feasibility study finished by the end of the fourth quarter of this year.
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