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CYPRUS MINERALS ANNOUNCES BID FOR PERU'S CERRO VERDE COPPER MINE

 DENVER, Nov. 11 /PRNewswire/ -- Cyprus Minerals Co. (NYSE: CYM) announced today that it has submitted a bid for Sociedad Minera Verde, S.A., a producing copper mine located in southern Peru. Cyprus has been informally advised that it is the successful bidder for Cerro Verde, with official confirmation by Minero Peru, the seller, anticipated within one week.
 Cerro Verde is a large copper resource with 180 million tons of leachable ore reserves at 0.8 percent copper. Cyprus' bid includes an initial cash payment of $37 million and a commitment to further develop the large millable reserve, estimated to be in excess of 400 million tons. Cyprus believes that a substantially larger geologic resource is indicated. Closing of the transaction is subject to negotiation of an acceptable acquisition agreement, anticipated to occur over the next 30 to 60 days.
 Milton H. Ward, chairman, president, and chief executive officer of Cyprus Minerals, said, "Even in these times of low copper prices, Cerro Verde provides a unique opportunity to acquire a major copper asset at a very attractive price. If awarded the property, we will aggressively implement our plan to increase production from the readily available leachable ore and proceed with evaluation of longer term plans for development of the significant sulfide reserve. Cerro Verde would be a significant contributor to Cyprus' copper operations for the next several decades."
 The leaching operation at Cerro Verde would generate approximately 100 million pounds of annual production for over 20 years with cash costs initially at approximately 50 cents per pound. Upgrading the existing SX/EW operations will require about $110 million in capital over the next several years. Ore grades of over 1.0 percent copper are anticipated for the first five years of production. The longer term development of a modern milling facility, subject to completion of a favorable feasibility study, would require an additional investment of nearly $375 million and be capable of producing an additional 125 million pounds of copper per year. Cyprus' future investment in Peru would be conditional, based upon the feasibility study, stable copper prices, a stable political environment, and other conditions.
 Cyprus' interest in the property would range from 80 to 100 percent as a result of the Cerro Verde workers' right to acquire up to a 10 percent ownership interest pursuant to Peruvian privatization laws and an option granted to Compania de Minas Buenaventura, S.A., a highly regarded private Peruvian mining company, to acquire up to 10 percent of the project. Both the workers and Buenaventura would be required to pay to Cyprus the same value for the shares acquired as that paid by Cyprus.
 Cyprus Minerals Co., headquartered in Englewood, Colo., is a major producer of copper, coal, and lithium. The company also produces molybdenum and iron ore. Cyprus shareholders are expected to vote on Nov. 12 on the company's proposed merger with Amax Inc. Closing is expected to take place on Nov. 15.
 -0- 11/11/93
 /CONTACT: Michael Rounds of Cyprus Minerals, 303-643-5186/
 (CYM) CO: Cyprus Minerals Co. ST: Colorado IN: MNG SU:


JB-EH -- LA019 -- 3225 11/11/93 12:24 EST
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Publication:PR Newswire
Date:Nov 11, 1993
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