Stingray Copper Inc.
TSX : SRY

Stingray Copper Inc.

September 09, 2009 10:47 ET

Stingray Issues Shares to Xstrata to Complete Acquisition of El Pilar Copper Property, Mexico

TORONTO, ONTARIO--(Marketwire - Sept. 9, 2009) - Stingray Copper Inc. (TSX:SRY) ("Stingray" or the "Corporation") is issuing to Xstrata Canada Corporation ("Xstrata") 1,829,837 common shares of the Corporation to complete the terms of the Agreement between the companies for the acquisition of Noranda Exploration Mexico S.A. de C.V., more particularly, the 100% ownership of the El Pilar copper property. Upon the delivery of the positive El Pilar Feasibility Study completed by M3 Engineering and Technology Corporation ("M3"), as described in the Corporation's News Release 2009-02, Stingray is obliged to issue these shares to Xstrata, so that post this share issuance, Xstrata will have been issued 9.99% of the issued shares of the Corporation. The share issuance is subject to usual regulatory approvals. Stingray's issued capital post this issuance will be 60,555,819 million shares.

The El Pilar copper property, located in Sonora, Mexico hosts a Mineral Reserve of 239 million tonnes that has been scheduled for a 14 year open pit mining operation. Mined ore will be heap leached and the copper will be extracted using conventional solvent extraction and electro-winning ("SX-EW") process technology to produce high quality cathode copper. M3 has estimated life of mine average annual cathode copper production of 68 million pounds at a cash operating cost of US $1.20 per pound of copper. The Initial Capital Cost is estimated at US $209 million and includes the construction of a Co-Generating Sulfuric Acid/Power Plant.

Stingray is actively pursuing project financing alternatives while continuing to develop the El Pilar project towards mine construction. The Corporation is well funded with roughly $15.9 million in working capital. Basic engineering of the Co-Generating Sulfuric Acid/Power Plant by Aker Chemetics is underway (See News Release 2009-05). Stingray is proceeding internally with basic engineering related to several other areas of the proposed operation as well as working with their consultant to acquire the necessary permits for the project.

Peter Mordaunt, P.Geo is the Qualified Person responsible for the technical content of this release.

Stingray Website: www.stingraycopper.com

TSX Symbol: Common Shares - "SRY"

Issued: 60,555,819 common shares

Forward Looking Statements:

Certain statements contained in this news release, including those regarding production, costs, timing of permitting, construction or production, future financial or operating performance and other statements that express management's expectations or estimates of future performance constitute "forward-looking statements". All statements, other than statements of historical fact, are forward-looking statements. Information concerning the interpretation of mineral resource and reserve estimates and capital cost estimates may also be deemed as forward-looking statements as such information constitutes a prediction of what mineralization might be found to be present and how much capital will be required if and when a project is actually developed. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties and contingencies. The Corporation cautions the reader that these statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements.
These risks, uncertainties and other factors include, but are not limited to: general business and economic conditions; the supply and demand for, deliveries of, and the level and volatility of prices of copper as well as petroleum products; the timing of the receipt of regulatory and governmental approvals for the Corporation's development project and other operations; the availability of financing for the Corporation's development project on reasonable terms; Stingray's estimation of its costs of production, its expected production and its productivity levels, as well as those of its competitors; power prices; the ability to procure equipment and operating supplies in sufficient quantities and on a timely basis; the ability to attract and retain skilled staff; engineering and construction timetables and capital costs for Stingray's development project; market competition; the accuracy of the resource estimate (including, with respect to size, grade and recoverability) and the geological, operational and price assumptions on which it is based; tax benefits and tax rates; the Corporation's ongoing relations with its employees, its business partners and joint venture partners and the local communities. These forward-looking statements involve risks and uncertainties relating to, among other things, changes in commodity prices and, particularly, copper prices, access to skilled mining development and mill production personnel, results of exploration and development activities, the Corporation's limited experience with production and development stage mining operations, uninsured risks, regulatory changes, defects in title, availability of materials and equipment, timeliness of government approvals, actual performance of facilities, equipment and processes relative to specifications and expectations and unanticipated environmental impacts on operations. These factors are discussed in greater detail in the Corporation's most recent Annual Information Form filed on SEDAR. Other assumptions are also more fully described in the Study.

The Corporation cautions that the foregoing list of important factors is not exhaustive. Investors and others who base their decisions on the Corporation's forward-looking statements should carefully consider the above factors as well as the uncertainties they represent and the risk they entail. The Corporation believes that the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. These statements speak only as of the date of this news release. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this news release. Moreover, these forward-looking statements may not be suitable for establishing strategic priorities and objectives, future strategies or actions, financial objectives and projections other than those mentioned above.

Contact Information

  • Stingray Copper Inc.
    Steve Brunelle
    Vice President
    (416) 368-6240
    or
    Stingray Copper Inc.
    Peter Mordaunt
    CEO & Chairman
    (416) 368-6240