Monterrico Metals

Monterrico Metals plc (Monterrico) is a resource development company incorporated in the UK. Monterrico's Corporate HQ is in Hong Kong, and its principle operations are in Peru. The Company's principal asset is the large, wholly owned Rio Blanco copper/molybdenum deposit in northern Peru. This deposit has resources of 1.257 billion tonnes at 0.57%... copper & 228 ppm molybdenum, making it one of the largest undeveloped copper resources in the world. Monterrico plans to develop Rio Blanco as a conventional open pit mine producing copper and molybdenum concentrates. At planned production rates, as defined in the Detailed Feasibility Study, (see announcement of 5 February 2007), Rio Blanco will be amongst the 20 largest copper mines in the world, producing on average of 191,000 tonnes of copper per annum and 2,180 tonnes of molybdenum per annum during the first five years of operation. The target date for mine start-up is 2011. The Company also has a number of other exploration properties in Peru. On 27 April 2007, a Chinese consortium, Xiamen Zijin Tongguan Development Co. Ltd (the " Zijin Consortium") acquired a majority shareholding (89.9%) in Monterrico. This was the result of a cash offer of 350p per share, which was agreed between the Boards of Zijin Consortium and Monterrico. Under the terms of the offer, the Consortium announced that it intended to retain the listing of Monterrico on AIM and planned to reduce its shareholding in the Company to not more than 70%. On 21 September 2007, the Consortium sold down its shareholding from 89.9% to 79.9%. The Zijin Consortium consists of a partnership of three strategic Chinese companies: 45% Zijin Mining Group Co Ltd, 35% Tongling Nonferrous Metals Group Holdings Co Ltd and 20% Xiamen Construction and Development Co Ltd. The takeover by the Zijin Consortium brings the important benefits of technical expertise and financial strength, to Monterrico at the time when the Company is undergoing the transition from an exploration company to a major copper producer. As ...Read More