Frontera Copper Corporation

Frontera Copper Corporation

July 07, 2005 10:47 ET

Frontera Copper Unit Offering Increased to Cdn$69.0 Million

TORONTO, ONTARIO--(CCNMatthews - July 07, 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.NT)(TSX:FCC.WT) is pleased to announce that it has completed the issuance of an additional 9,000 units for gross proceeds of Cdn$9,000,000 pursuant to the over-allotment option granted to the underwriting syndicate, led by RBC Capital Markets, in conjunction with the previously announced unit offering. The closing of the over-allotment option increases the unit offering to a total of 69,000 units raising aggregate gross proceeds of Cdn$69,000,000. Details of the unit offering are described in Frontera Copper's prospectus dated June 1, 2005 and in the press releases issued June 2 and 10, 2005. 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.

"The successful completion of the over-allotment further endorses the quality of the Piedras Verdes project which is on schedule to be producing LME Grade A, copper cathode in the second half of 2006," says Gary A. Loving, President and CEO Frontera Copper Corporation.

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.

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.

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