Quadra Mining Ltd.

Quadra Mining Ltd.
FNX Mining Company Inc.

FNX Mining Company Inc.

May 21, 2010 11:42 ET

CORRECTION: Quadra and FNX Complete Merger

TORONTO, ONTARIO--(Marketwire - May 21, 2010) - The following corrects and replaces the release issued at 8:00 am ET, on May 21, 2010, for Quadra Mining Ltd. and FNX Mining Company Inc. The contact information, including the email addresses and websites, was incorrect. The complete, corrected release follows.

Quadra Mining Ltd. ("Quadra") (TSX:QUA) and FNX Mining Company ("FNX") (TSX:FNX) are pleased to announce that that they have completed the merger of the two companies to create a new leading intermediate copper producer. The combined company will be named Quadra FNX Mining Ltd. and will trade under the symbol QUX on or about May 26, 2010.

The merger was structured as a court-approved plan of arrangement (the "Transaction") under the Business Corporations Act (Ontario) pursuant to which Quadra has acquired all of the issued and outstanding common shares of FNX. Under the terms of the Transaction, former shareholders of FNX are entitled to receive 0.87 common shares of Quadra and $0.0001 for each common share of FNX, subject to adjustment for fractional shares. Outstanding options and warrants to acquire FNX shares have been converted into options and warrants to acquire Quadra shares, adjusted in accordance with the same exchange ratio. FNX will be delisted from the TSX on or about May 26, 2010.

"The new Quadra FNX creates an excellent platform for growth and positions us to be a leading consolidator in the mid-cap copper space," said Paul Blythe, who becomes President and Chief Executive Officer of the Company. "We now possess the market capitalization, financial strength and cash generating capacity to allow us to pursue further growth through transactions and through internal growth via our pipeline of significant and high potential projects."

Paul Blythe continues, "Quadra FNX has excellent diversified production and development project base spread across low-risk jurisdictions in North and South America, and has a significant presence in two of the most important mining camps in the world, the Sudbury Basin in Canada and the Atacama region in northern Chile," said Blythe. "Our combined management team brings together complementary and entrepreneurial cultures that are focused on generating value through growth, and we are looking forward to capitalize on the opportunities created by our merger."

Quadra FNX has a market capitalization of CDN$2.2 billion, a treasury of approximately US$600 million, and minimal debt. Quadra FNX is expected to produce an estimated 300 million pounds of copper and 150,000 ounces of platinum group metals in 2010 from its five producing mines.

About Quadra FNX

Quadra FNX is a leading mid-tier copper mining company with corporate offices in Vancouver, B.C. and Toronto, Ontario. Quadra FNX produces copper and platinum group metals from its operating mines: the Robinson mine in Nevada, the Carlota mine Arizona, Franke mine in northern Chile, and the McCreedy West, Levack and Podolsky mines in Sudbury, Ontario. The company possesses several advanced development projects, including the Sierra Gorda copper-molybdenum project in Chile, the Morrison Deposit in Sudbury, and the Malmbjerg molybdenum development project in Greenland. Quadra FNX employs approximately 1,650 people in North and South America. Quadra FNX common shares are listed on the Toronto Stock Exchange and on or about May 26, 2010, its ticker symbol will change from "QUA" to "QUX". The website containing information about the combined company will be available at http://www.quadrafnx.com on May 25th, 2010.

Forward-Looking Statement

Certain information contained in this news release, including information relating to the financial position of Quadra FNX and future production of Quadra FNX may be deemed "forward-looking". These statements relate to future events or future performance and reflect Quadra FNX's expectations regarding the future growth, results of operations, business prospects and opportunities of Quadra FNX. In some cases forward-looking information can be identified by terminology such as "may", "will", "should", "expect", "intend", "plan", "anticipate", "believe", "estimate", "projects", "potential", "scheduled", "forecast", "budget" or the negative of those terms or other comparable terminology. These forward-looking statements reflect Quadra FNX's current internal projections, expectations or beliefs and are based on information currently available to Quadra FNX . Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause Quadra's actual results and financial position to be materially different from those expressed or implied by such forward-looking information, and developed based on assumptions about such risks, uncertainties and other factors including:

  • uncertainties related to actual capital costs, operating costs and expenditures, production schedules and economic returns from Quadra FNX's mining projects;
  • risks related to the integration of businesses and assets of Quadra FNX;
  • inherent hazards and risks associated with mining operations;
  • future acquisitions or other projects could require Quadra FNX to use the cash in its treasury or incur debt;
  • risks associated with Quadra FNX being subject to government regulation, including changes in regulation;
  • risks associated with Quadra being subject to extensive environmental laws and regulations, including changes in regulation;
  • risks that Quadra FNX's title to its property could be challenged;
  • political and country risk;
  • risks resulting from Quadra FNX's need to attract and retain qualified personnel;
  • risks relating to the availability and cost of key operating supplies and services;
  • risks associated with Quadra FNX's dependence on transportation facilities and infrastructure; and
  • uncertainties related to production ramp-up at the Carlota Mine and the Franke Mine.

A discussion of these and other factors that may affect Quadra FNX's actual results, performance, achievements or financial position is contained in the filings by Quadra and FNX with the Canadian provincial securities regulatory authorities, including Quadra's and FNX's Annual Information Forms. Although Quadra FNX believes that the forward-looking information contained in this news release are based on reasonable assumptions, readers cannot be assured that actual results will be consistent with such statements. Accordingly, readers are cautioned against placing undue reliance on forward-looking information. Quadra FNX expressly disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, events or otherwise, except in accordance with applicable securities laws.

Contact Information

  • Quadra FNX Mining Ltd.
    Paul Blythe
    President and CEO
    Quadra FNX Mining Ltd.
    David Constable
    Vice President Investor Relations