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CYPRUS LAC PARTNERSHIP WINS EL ABRA BID

 ENGLEWOOD, Colo., Oct. 11 /PRNewswire/ -- Cyprus Minerals Company (NYSE: CYM) and Lac Minerals Ltd. today announced that their 50/50 partnership, Cyprus Lac Minerals Company, has been notified by Corporacion Nacional del Cobre de Chile (CODELCO) that it is the successful bidder for a 51 percent interest in the El Abra Copper property in Chile. Both Cyprus and Lac, with a team of highly qualified technical and financial advisors, performed extensive studies of the property and submitted a development plan which will lead to the production of 225,000 tonnes per year of refined copper cathodes, with production to begin approximately 39 months after closing.
 Milt Ward, chairman, president, and chief executive officer of Cyprus Minerals Company, and Peter Allen, president and chief executive officer of Lac Minerals Company, said, "We are very pleased and excited that we have been given the opportunity to work with CODELCO on the development of what we believe may well be the premier mine of the decade. The mine, which should have 20 years of production from the oxide ores with cash production costs in the low 40 cent range, will require an investment of approximately $1 billion. Subsequent development of the large underlying sulfide reserves could begin in about 10 years if economic conditions warrant their development."
 The bid of Cyprus Lac Minerals Company for the 51 percent interest in the El Abra deposit contemplates a payment to CODELCO of $404 million at closing. In addition, Cyprus Lac Minerals will contribute to the venture equity of up to $151 million on CODELCO's behalf. The partners anticipate that approximately $700 million of limited recourse debt financing will be arranged for the development of the project. Additionally, the bid includes a payment to CODELCO of 5 percent of the incremental profit before taxes, arising from the exploitation of the non-leachable sulfide ores contained in the deposit.
 The closing of this transaction is conditional upon satisfactory documentation of the joint venture. The partners have committed to commence immediately to document the agreements reached.
 -0- 10/11/93
 /CONTACT: Michael Rounds of Cyprus Minerals Company, 303-643-5186/
 (CYM)


CO: Cyprus Minerals Company ST: Colorado IN: MNG SU:

SH -- NY011 -- 0566 10/11/93 09:09 EDT
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Publication:PR Newswire
Date:Oct 11, 1993
Words:368
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