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| Thompson Creek Metals / USA Signs Option Agreement To Acquire Molybdenum Deposit |
| = With Target To Acquire Up To 75% Of Shares Of U.S. Energy |
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Thompson Creek Metals Company Inc. (the Company) of the USA announced on the 19th of August that its wholly owned subsidiary, Thompson Creek Metals Company USA (TCUSA), has signed an Option Agreement with U.S. Energy Corp. (USE) that gives TCUSA an option to acquire up to 75% in USE's Lucky Jack molybdenum property in Crested Butte of Colorado State. Luck Jack molybdenum deposit has been located in Gunnison County 3 miles northwest of Crested Butte of Colorado State and the deposit is located beneath the surface of Mount Emmons. The Company said that the Lucky Jack Project is one of the largest, high-grade, undeveloped molybdenum deposits in the world, with a mineral resource in excess of 700 million lbs. of molybdenum. According to an exploration conducted by AMAX in 1978, the report indicated <> molybdenum content of 0.2 - 1.0% (0.4% on average), <> ore bed of 70 meters on average and <> estimated reserve of 90 million tons. Also, according to survey performed by Behre Dolbear in 2007, it showed <> grading 0.38% MoS2 (0.228% Mo) at a cutoff grade of 0.2% MoS2 (0.12% Mo). This resource contains 760 million lbs. of molybdenum (Mo). Under the Option Agreement, TCUSA has made a US$500,000 payment to USE upon signing and, then, TCUSA will pay US$1 million annually to USE for six years, beginning on the 1st January of 2009 and ending on the 1st January of 2014. TCUSA can earn the right to acquire a 15% interest in the project by spending a total of US$15 million on the project, including the direct payment to USE by the 30th June of 2011. To earn a 50% interest, TCUSA must spend a cumulative total of US$50 million by the 31st July of 2018. After obtaining a 50% interest, TCUSA will hold the following two options ; (1) TCUSA may elect to form a 50 - 50 joint venture with USE for further development, or (2) TCUSA may choose to raise its interest up to 75% by incurring an additional US$350 million in project expenditures, for a cumulative total US$400 million in expenditures and payments. |
| last modified : Thu 28 Aug, 2008 [10:48] |
