Copper proj gets $10M more

Atlas Consolidated Mining and Development Corp. (ACMDC) and investment fund Crescent Asian Special Opportunities Portfolio have infused an additional $10 million into Carmen Copper Corp., which operates the Toledo copper mine in Cebu.

In a disclosure to the Philippine Stock Exchange, ACMDC said the partners have purchased a total of 112.33 million common shares of Carmen Copper, with ACMDC shelling out $6.55 million while Crescent Asian contributing $3.447 million.

Crescent Asian is an investment portfolio comprising institutional investors that manage funds in excess of $20 billion. It was established to finance proprietary special situation and alternative investment opportunities in the Asia-Pacific region.

Carmen Copper was one of the largest copper producers in Asia since 1955, until the suspension of its operations in 1994 after its mine site was flooded by a typhoon.

The newly rehabilitated Toledo mine has deposits of 874 million metric tons with an average grade of 0.41 percent copper. It is seen to produce copper concentrates by the second quarter of 2008.

Initial production is expected to reach 20,000 tons per day, seen to further increase to 42,000 tons.

Based on a previous feasibility study, the Toledo mine will produce over a 12-year period an average of 47,000 tons of copper and 41,000 ounces of gold plus pyrite and iron ore magnetite concentrates.

The reopening of the Carmen Copper mine, which requires about  $150 million to $200 million, is seen to generate about $3 billion in revenues.

ACMDC’s net profit for the year is expected to grow to P3 billion from P2 billion, mainly driven by the reopening of the Carmen Copper mine.