SOURCE: Copper King Mining

June 18, 2009 11:51 ET

Copper King Provides Update on Operations and Financing Activities

Key Debt Maturity Date Extended to January 2010

MILFORD, UT--(Marketwire - June 18, 2009) - Copper King Mining Corporation (PINKSHEETS: CPRK) ("Copper King" or the "Company") provided an update today on its operations and plans for establishing a lower-cost, long-term capital structure. As an important first step in its financing plans, the Company announced today that it has entered into loan modification agreements with all of its lenders having security interests in its mill and certain other assets. A key feature of these agreements is the extension of their maturity dates until January of 2010. The Company believes the extensions in maturity will provide ample time for it to refinance its entire balance sheet with long-term, lower cost institutional debt appropriate for a producing mining company. The Company believes its prospects for a refinance at lower rates are now substantially improved with the commencement of production at its mill and the near term achievement of a positive cash flow from operations.

The Company expects that new financing will include funds for the construction of an SX\EW leaching plant to generate additional revenue from the same mining operations. This complementary plant is expected to come on line during the last quarter of 2009, or early 2010.

"The commencement of production at the mill has greatly increased our prospects to complete attractive long-term financing and product sales contracts," said Mark D. Dotson, President and CEO of Copper King. "We are pleased to have extensions of key secured debt and are now working hard on our financing plan to provide for working capital and expansion. This refinancing of our liabilities and our increasing production levels will create two strong pillars for us to increase shareholder value."

Copper King has engaged Ambient Advisors, LLC of Los Angeles, California ("Ambient") to act as financial advisor on various matters including assisting in obtaining working capital, long-term project and debt refinancing.

About Copper King

Copper King controls over 59,000 acres of advanced-stage and development-stage mineralized acreage in Western Beaver County, Utah, and has commenced start-up of a 5,000 ton per day capacity floatation mill and concentrator for processing high-grade ores from its Milford Mineral Belt copper-gold-silver deposits. Copper King is led by an experienced management team focused on exploration and production using traditional and new technologies.

This press release may contain forward-looking information within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and is subject to the safe harbor created by those sections. There are many factors that could cause our expectations and beliefs about our plans to commence production, our plans to drill or our drilling results to fail to materialize: general world economic conditions; availability of capital; unfavorable geologic conditions; the complexity of exploration and production; prevailing prices for commodities, and general regional economic conditions. Copper King assumes no obligation to update the information contained in this press release.

Contact Information

  • Investor Relations Contact:

    Charles A. Moskowitz
    Email Contact