Mitsubishi Materials Corp. has advanced $28.75 million to Similico Mines Ltd., a subsidiary of Vancouver's Copper Mountain Mining Corp. (CMMC), to assist in the redevelopment of a copper mine near Princeton, B.C.
The bridge loan will fund development needed to start mine production at the end of 2010.
"I am extremely pleased that Mitsubishi agrees to help us develop this project by the bridge-loan in a very challenging financial time," said company CEO Jim O'Rourke. "Despite the current economic turbulence, we have added confidence that the project will be developed within the budget and schedule. We're taking a long-term positive view on the price of copper and expect an improvement in the global economic situation by 2011 when the mine is scheduled to be operating."
CMMC and Mitsubishi are negotiating definitive agreements in accordance with the memorandum of understanding announced October 1.