AQM Copper Inc.
TSX VENTURE : AQM
BVLAC : AQM

AQM Copper Inc.

July 08, 2010 14:34 ET

AQM Copper Inc. Announces 50/50 JV With Teck for Zafranal Project

- New Terms Eliminate the Back-in Right of Teck, Eliminate Cash Payments, and Eliminate the NSR Royalty;

- 2010 Exploration Significantly Increased Potential of Zafranal Main Zone and Exploration Will Continue Throughout 2010

- Visit New Website www.aqmcopper.com

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 8, 2010) - AQM Copper Inc. (TSX VENTURE:AQM)(BVLAC:AQM) ("AQM" or "the Company") is pleased to announce the amendment of the original option agreement with Teck Peru S.A., a subsidiary of Teck Resources Limited ("Teck"), whereby AQM Copper will immediately vest at a 50% interest in the Zafranal Project and Teck and AQM would form a 50/50 JV for the continued exploration and potential development of the Zafranal Project through a sole purpose Peruvian company.

The original terms of the May 13, 2009 Option/JV Agreement were amended to allow the immediate formation of a 50/50 Joint Venture and to eliminate cash payments to Teck Peru S.A., the retained NSR Royalty and Teck Peru S.A.'s back-in rights.

The revised terms of the agreement now provide that:

  • upon TSX approval AQM shall issue to Teck Peru S.A. 5 million common shares of AQM Copper Inc.,

  • AQM, which has completed the Initial Work commitment of US$7.5M under the original Option/JV Agreement, shall solely fund the next US$10.7M in project expenditures (the "Carried Period"). 

  • After the Carried Period, each party must contribute according to their share in the JV or standard dilution applies. 

  • Under the JV, AQM is the operator until a production decision is made, at which time Teck may elect to be the operator. The JV will be administered by a Board of Directors representing both parties according to their participating interests.

Teck discovered the Zafranal Main Zone in 2003 as part of a regional exploration program in Southern Peru and outlined a significant conceptual resource through RC and core drilling. AQM examined Zafranal as part of a tender process run by Teck; after a bidding process, in May 2009, AQM was awarded the right by Teck to earn into the Zafranal property through an Option/JV arrangement.

AQM commenced a 40,000m+ drill program mostly focused on a 2km long segment of the 3.5+km east-west trending intensely mineralized Main Zone, one of six porphyry copper-gold targets within the Zafranal project. To date, a large zone of porphyry copper-gold style mineralization has been identified at the Main Zone, including a higher grade secondary enrichment blanket over 3.3km strike, 600m width and 50-150m+ thick. Both high grade secondary enrichment and primary mineralization continue to expand. Included in the current program are metallurgical testing and exploration of additional zones within the Zafranal Project. AQM and Teck will immediately establish a technical committee to guide the work program through the end of 2010.

"We are extremely pleased to come to this beneficial agreement for both parties," states President Bruce Turner. "Clearly Teck recognizes the potential at Zafranal and we're pleased to be working with them as we continue to advance the project." 

Together with this announcement, AQM is pleased to launch its new website, www.aqmcopper.com, where details of the new deal can be found along with updated diagrams, maps, photos and information.

Dr. Tom Henricksen, consultant geologist of the Company and Chief Geologist for AQM Peru, the Company's Qualified Person for the purposes of NI 43-101, has approved the information contained in this news release.

ON BEHALF OF THE BOARD OF DIRECTORS

Bruce Turner, President and CEO

ABOUT AQM: AQM Copper Inc. is a Canadian based mineral exploration company developing copper deposits in South America. Through its wholly owned Peruvian subsidiary, Minera AQM Peru SAC, the company is developing the Zafranal Copper-Gold Porphyry Project located in Southern Peru. Management and directors have extensive experience working for the world's largest mining Copper producers. Please refer to them Company's website for further information regarding the Company and its projects.

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