Centenario Copper Corporation

Centenario Copper Corporation

October 17, 2007 12:41 ET

Centenario Copper Corporation Announces Conversion of Special Warrants and Listing on the Toronto Stock Exchange

TORONTO, ONTARIO--(Marketwire - Oct. 17, 2007) - Centenario Copper Corporation (TSX:CCT) is pleased to announce that effective October 18, 2007, its shares will begin trading publicly on the Toronto Stock Exchange ("TSX") under the symbol "CCT".

On July 19, 2007, the Corporation closed an offering of 16,000,000 Special Warrants at a price of US$5.00 per Special Warrant, providing net equity proceeds of approximately US$74,900,000. A prospectus qualifying the distribution of 16,000,000 common shares issuable upon the conversion of the Special Warrants was receipted by the Ontario Securities Commission on October 12, 2007, clearing the way for the Special Warrants to automatically convert into common shares, effective at the close of business today. These underlying shares will be eligible for trading tomorrow on the Toronto Stock Exchange. With the conversion of the Warrants into common shares, Centenario has 40,943,838 Common Shares issued and outstanding.

Richard Colterjohn, President and Chief Executive Officer of Centenario, said, "the listing of Centenario on the TSX is a key milestone in the evolution of our young company. As the premiere mining exchange in the world, the TSX will bring greater visibility and enhanced liquidity to the Centenario story and I look forward to building on our existing shareholder base as we move forward to realize upon the considerable potential of the company."

Centenario Copper Corporation was founded in 2004 with the goal of becoming a leading mid-tier copper producer. The 100% owned Franke Property, located in the Altamira mining district of Region II in Chile, is a development-stage solvent extraction-electrowinning project containing 26.3 million tonnes of proven and probable reserves, with an average grade of 0.95% total copper. In the second quarter of 2007, a bankable feasibility study was completed and Centenario received environmental impact approval for the development of a plant to produce 30,000 tonnes of copper cathode per annum. With the proceeds of the aforementioned equity financing and an underwritten US$110 million project debt credit facility, Centenario anticipates it has adequate financial resources available to fund the construction of the Franke Project. Construction is now underway and the Corporation is targeting initial cathode production in December 2008. A 30,500 meter pre-production drilling program has also recently been completed and a revised reserve and mine plan is anticipated before the end of 2007.

The Corporation also owns 100% of the Pelusa Property, located several kilometres west of the Franke Property. Centenario's management believes the Pelusa Property is highly prospective for developing additional copper resources that could be exploited as standalone operations or as satellites to the Franke Property. Initial drilling on the China target in late 2006 and early 2007 has resulted in a NI 43-101 compliant Indicated Resource of 12.0 million tonnes, with an average grade of 0.56% total copper and an Inferred Resource of 19.3 million tonnes, with an average grade of 0.50% total copper. A 28,000 meter drill program is currently underway, including an infill program at China and an evaluation of a number of additional priority targets on this large property. Initial results from this program are anticipated during the fourth quarter of 2007.

In addition, Centenario holds an option to acquire the Pan de Azucar Property, located approximately 45 km southwest of the Franke Property. Preliminary exploration results have been encouraging for a potential copper-gold target, and a preliminary 6,000 meter drill program is underway, with initial results anticipated before the end of 2007.

Copies of the prospectus as well as NI 43-101 Technical Reports on the Franke Property and the Pelusa Property are posted on SEDAR and on the Company's web site.

CAUTIONARY STATEMENT: No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This News Release includes certain "forward-looking statements". All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding future plans and objectives of Centenario Copper Corporation, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Centenario's expectations are the risks detailed herein and from time to time in the filings made by Centenario Copper Corporation with securities regulators.

Contact Information

  • Centenario Copper Corporation
    Richard Colterjohn
    President and CEO
    (416) 360-0059
    (416) 360-8204 (FAX)
    Website: www.centenariocopper.com