Frontera Copper Corporation

Frontera Copper Corporation

June 10, 2005 10:38 ET

Frontera Copper Closes Unit Offering

TORONTO, ONTARIO--(CCNMatthews - June 10, 2005) - Not for distribution to U.S. news wire services or dissemination in the United States.

(All dollar amounts are expressed in United States currency unless otherwise noted)

Frontera Copper Corporation (TSX:FCC)(TSX:FCC.WT) is pleased to announce that it has closed its unit offering of 60,000 units at a price of Cdn$1,000 per unit for gross proceeds of Cdn$60,000,000. The net proceeds of the offering will be used together with the company's existing cash resources to fund the development of its wholly-owned Piedras Verdes copper project in Sonora, Mexico.

"With the completion of this offering, the Piedras Verdes project is financed to production," says Gary A. Loving, President and CEO of Frontera Copper. "The proceeds from this offering together with the long lead-time equipment we have secured will enable us to bring Piedras Verdes into production on budget in the second half of 2006."

Each unit issued consists of a Cdn$1,000 principal amount senior unsecured note and 100 common shares of Frontera Copper. The notes will not be convertible, will mature on June 15, 2010 and will pay interest semi-annually at a rate of 10% per annum. The units separate into notes and common shares immediately upon closing of the offering. The underwriting syndicate for the offering was led by RBC Capital Markets and included Haywood Securities Inc., Orion Securities Inc., BMO Nesbitt Burns Inc. and National Bank Financial Inc. Frontera Copper has granted the underwriters an over-allotment option exercisable for 30 days following the closing of the offering to purchase up to an additional 9,000 units on the same terms and conditions.

The notes are listed on the Toronto Stock Exchange and commence trading today under the symbol FCC.NT. Together with Frontera Copper's currently outstanding common shares, the common shares issued on the offering will also commence trading today on the Toronto Stock Exchange under the symbol FCC.

The securities referenced by this news release have not been registered under the United States Securities Act of 1933, as amended, or any state securities laws, and unless so registered may not be offered or sold in the United States absent registration or applicable exemption from registration requirements. This news release does not constitute an offer to sell or the solicitation of an offer to buy securities of Frontera Copper in any jurisdiction.

About Frontera Copper

Frontera Copper was incorporated in March 2002 to purchase and bring into production the Piedras Verdes open pit, run-of-mine, heap leach, SXEW copper project in Sonora, Mexico. In February 2005, the company signed a letter of intent with Grupo PEAL for the provision of contract mining services. Subject to Frontera Copper receiving all necessary permits, the company plans to begin construction activities in the third quarter of 2005. Copper production is expected to commence in the second half of 2006 at an annual rate of 70 million pounds per year of LME Grade A cathode at an average life-of-mine cash operating cost of $0.58 per pound. A total of 942 million pounds of copper is projected to be produced during the 18 year life of the project. Existing resources and prospective exploration targets adjacent to the proposed open pit have the potential to improve the economics and extend the life of the project.

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