First Quantum Minerals Ltd.

First Quantum Minerals Ltd.

February 10, 2010 05:14 ET

First Quantum Minerals Announces Finalization of the Acquisition of the Ravensthorpe Nickel Operation, Western Australia

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 10, 2010) - (All dollar amounts are expressed in United States dollars, unless noted otherwise)

First Quantum Minerals Ltd. ("First Quantum" or the "Company") (TSX:FM)(LSE:FQM) today announced the finalization of the acquisition of the Ravensthorpe Nickel Operation in Western Australia following the receipt of the relevant Government approvals. The acquisition will take effect on February 10, 2010.

The Company is planning to spend the next 12 months constructing two crushing plants in the modification of the crushing, conveying, stockpile and reclaim areas of the plant. This is expected to be followed by approximately six months of commissioning and ramp-up. The capital requirement for the modification is estimated at approximately US$150 million, depending on currency exchange rates.

Ravensthorpe Background The project is located in Ravensthorpe, Western Australia, approximately 550 kilometres south-east of Perth. It is an open cut mine and hydrometallurgical process plant that uses proven technology to recover nickel and cobalt to produce a mixed nickel cobalt hydroxide intermediate product. The Company expects the project's average annual production of nickel metal will be approximately 39,000 tonnes for the first five years after recommencement of operations and an average annual production of 28,000 tonnes of nickel metal over the expected life of mine of 32 years. Ravensthorpe's development was completed in 2007 however; operations were suspended in January 2009 after the LME nickel price dropped to as low as $8,810.00 per tonne in late 2008.

On Behalf of the Board of Directors of First Quantum Minerals Ltd.

G. Clive Newall, President

Listed in Standard and Poor's

Certain statements and information herein, including all statements that are not historical facts, contain forward-looking statements and forward-looking information within the meaning of applicable U.S. and Canadian securities laws. Such forward-looking statements or information include but are not limited to statements or information with respect to future price of nickel, copper or gold, estimation of mineral reserves and mineral resources, our exploration and development program, estimated future expenses including estimated cash operating costs and capital costs, timing of engineering, construction and commercial production, methods of mining, estimated internal rate of return and net present value of the Ravensthorpe project, exploration and development capital requirements, and our goals and strategies. Often, but not always, forward-looking statements or information can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "believes" or variations (including negative and grammatical variations) of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved.

With respect to forward-looking statements and information contained herein, we have made numerous assumptions including among other things, assumptions about the price of nickel, copper and gold, ore types, throughput and recovery rates, exchange rates and discount rates, anticipated costs and expenditures and our ability to achieve our goals. Although our management believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that a forward-looking statement or information herein will prove to be accurate. Forward-looking statements and information by their nature are based on assumptions and involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information.

See our annual information form and our quarterly and annual management's discussion and analysis for additional information on risks, uncertainties and other factors relating to the forward-looking statements and information. Although we have attempted to identify factors that would cause actual actions, events or results to differ materially from those disclosed in the forward-looking statements or information, there may be other factors that cause actual results, performances, achievements or events not to be anticipated, estimated or intended. Also, many of the factors are beyond our control. Accordingly, readers should not place undue reliance on forward-looking statements or information. We undertake no obligation to reissue or update forward-looking statements or information as a result of new information or events after the date hereof except as may be required by law. All forward-looking statements and information made herein, are qualified by this cautionary statement.

Contact Information

  • First Quantum Minerals Ltd. - North American contact
    Sharon Loung
    (647) 346-3934 or Toll Free: 1 (888) 688-6577
    (604) 688-3818 (FAX)
    First Quantum Minerals Ltd. - United Kingdom contact
    Clive Newall
    +44 140 327 3484
    +44 140 327 3494 (FAX)
    Hogarth Partnership Ltd.
    Simon Hockridge
    +44 (0) 20 7357 9477
    Clarity Communications - Australia contact
    Anthony Hasluck
    +61 08 9380 0700