Capstone Mining Corp.
TSX : CS
TSX : CS.DB

Capstone Mining Corp.

December 24, 2008 14:07 ET

Capstone Mails Offer to Purchase to its Debentureholders

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 24, 2008) - Capstone Mining Corp. (TSX:CS)(TSX:CS.DB) announced that yesterday it mailed its "Offer to Purchase" to the holders of its Debentures.

For further information regarding the Debentures and the Offer to Purchase, please see Capstone Mining North Ltd.'s (formerly Sherwood Copper Corporation) management information circular filed on October 23, 2008 under the Capstone Mining North profile on www.sedar.com.

About Capstone Mining

Capstone Mining's objective is the profitable production of base and precious metals from high grade low cost mines in mining-friendly jurisdictions. The Minto Mine in Yukon and Cozamin Mine in Mexico meet these objectives and both mines have undergone staged expansions, the most recent of which were completed in late 2008, the benefits of which will be fully realized in 2009. In parallel with expanding production, major exploration programs conducted in 2008 have been completed and are anticipated to result in increased mineral resources and, subject to demonstrated economics, conversion to mineral reserves, potentially supporting further increases in production levels. In addition, Capstone controls the high grade Kutcho copper project in British Columbia, were on-going activities aim to advance the project towards a production decision. In addition to its low cost copper production, Capstone has a strong balance sheet and a significant copper hedge book priced well above current spot prices for copper.

Additional Information

Additional information on Capstone and its Minto Mine can be obtained on Capstone's website at http://www.capstonemining.com.

On behalf of the board of directors

CAPSTONE MINING CORP.

Stephen P. Quin, President & COO

Forward-Looking Statements

This document may contain "forward-looking statements" within the meaning of Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements are made as of the date of this document and Capstone Mining Corp. (hereinafter referred to as the "Company") do not intend, and do not assume any obligation, to update these forward-looking statements.

There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward looking statements.

The TSX does not accept any responsibility for the adequacy or accuracy of this press release.

Contact Information

  • Capstone Mining Corp.
    Darren Pylot
    Vice Chairman & CEO
    (604) 684-8894 or 1-866-684-8894
    or
    Capstone Mining Corp.
    Chris Tomanik
    (604) 684-8894 or 1-866-684-8894
    or
    Capstone Mining Corp.
    Mark Patchett
    (604) 684-8894 or 1-866-684-8894
    (604) 688-2180 (FAX)
    Email: info@capstonemining.com
    or
    Capstone Mining Corp.
    Stephen Quin
    President & COO
    (604) 687-7545 or 1-888-338-2200
    or
    Capstone Mining Corp.
    Chris Curran
    (604) 687-7545 or 1-888-338-2200
    (604) 689-5041 (FAX)
    Email: info@sherwoodcopper.com
    Website: www.capstonemining.com