SOURCE: Frontera Copper Corporation

December 19, 2008 10:08 ET

Frontera Copper Announces Waiver of Application of Shareholder Rights Plan

TORONTO and PHOENIX, AZ--(Marketwire - December 19, 2008) - Frontera Copper Corporation (TSX: FCC) (TSX: FCC.NT) (TSX: FCC.NT.A) today announced that the Board of Directors has waived the application of the Shareholder Rights Plan (the "SRP") in respect of the announcement made by Invecture Group, S.A. de C.V. ("Invecture") on December 9, 2008 that Invecture had increased its shareholdings of Frontera to above 20%.

As previously reported, Invecture became an "Acquiring Person" under the SRP on December 9 as a result of increasing its aggregate holdings in Frontera to 21.45% of the outstanding common shares. Invecture has subsequently represented to Frontera that it made such acquisition without any intention to become, or knowledge that it would become, an Acquiring Person. Invecture has further represented to Frontera that Invecture has now reduced its shareholdings of Frontera to less than 20%. The SRP provides that, in such circumstances, the Board of Directors has the discretion to waive the application of the SRP. The effect of the waiver granted by the Board of Directors is that the Rights will not separate or become exercisable as a result of Invecture having become an Acquiring Person on December 9, 2008. The waiver granted by the Board of Directors applies only to this one occurrence. In the event that Invecture or any other person becomes an Acquiring Person in the future, the SRP would continue to apply.

ABOUT FRONTERA COPPER CORPORATION

Frontera Copper is a Canadian mining, development and exploration company whose principal activity is the production of copper cathode from the Piedras Verdes run-of-mine heap-leach copper operation in Sonora, Mexico. Based on the January 1, 2008 ore reserves and the estimated recoverable copper contained on the leach pads at December 31, 2007, approximately 1 billion pounds of copper are projected to be produced over the remaining 17-year life of the operation.

For further information, please see Frontera Copper's website at www.fronteracopper.com or contact:

Contact Information

  • Rodney Prokop
    Vice President, Investor Relations
    (602) 424-5483
    Email Contact

    Alan Edwards
    President and Chief Executive Officer
    (602) 424-5488