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Terrane Seeks Asian Partner for Mt. Milligan

Wed, Jan 13, 3:31 PM ET, by The Gold Stock Strategist

Last week, Goldcorp (TSE:G) (GG) let expire its one-time option to convert non-voting preferred shares in Terrane Metals’ (CVE:TRX) (TRXOF) Mt. Milligan gold and copper project into a 59 percent common share interest in the company. We indicated at the time that this milestone cleared up the ownership of Terrane, giving them a green light to seek other financing options.

Finding a new partner “is our intention now, and Goldcorp knows that,” Pease indicated to Bloomberg reporters. “Likely partners that we’re pursuing are the metal smelting and refining companies.

Yesterday, Bloomberg reported that Terrane is in talks with Japan’s Mitsubishi Corp., Sumitomo Corp. and other companies to help finance the $866 million gold-copper mining project. In addition to the Japanese mining interest, there are reports that Chinese and Korean mining companies may be interested in Terrane.

Terrane will be first focused on financing the recently approved 2010 construction budget of $172 million.

The Mt. Milligan project is projected to annually produce 89 million pounds of copper and 262,100 ounces of gold over a 22-year mine life.

This is good news for Terrane shareholders who bought on speculation the Goldcorp would completely buy out Terrane to get at the Mt. Milligan deposit. Mt. Milligan is a world class asset with 6 million proven and probable ounces of gold and 2.1 billion pounds of copper. The project is scheduled to begin production by late 2012.

Shares of Terrane Metals are up 5 percent this afternoon, with an OTC price of $1.27 per share.


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This Article's Word Cloud:   Bloomberg   Corp   Goldcorp   Metals   Milligan   Pease   Terrane   Yesterday   addition   annually   asset   class   cleared   companies   company   copper   deposit   expire   financing   gold   indicated   interest   interested   late   light   milestone   million   mine   mining   news   option   other   ounces   ownership   percent   pounds   production   project   recently   share   shares   smelting   that   there   this   time   week   with   would   year

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