Quadra FNX Mining Ltd.

Quadra FNX Mining Ltd.

September 14, 2011 08:30 ET

Quadra FNX Completes Joint Venture With Sumitomo for Development of Sierra Gorda

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 14, 2011) - Quadra FNX Mining Ltd. (the "Company" or "Quadra FNX") (TSX:QUX) is pleased to announce that Quadra FNX with Sumitomo Metal Mining Co., Ltd and Sumitomo Corporation (collectively "Sumitomo") have completed the formation of the previously announced Joint Venture to develop the Sierra Gorda copper-molybdenum project in Chile (see Press Release: May 16, 2011). Going forward Quadra FNX, with 55% of the Joint Venture and Sumitomo with the remaining 45%, will conduct activities through Sierra Gorda SCM ("SGJV"), a subsidiary of Quadra FNX and the existing owner of Sierra Gorda.

Upon closing Sumitomo made the first cash contribution of $360 million to SGJV as part of its initial $724 million funding obligation and Quadra FNX was reimbursed $167 million for amounts advanced by it to SGJV from May 2011 to closing. Quadra FNX now has a cash balance of approximately $1.1 billion, excluding its 55% share of cash in SGJV.

Paul Blythe, President & CEO comments, "Our Sierra Gorda project is a long-life asset that is transformational to Quadra FNX and this Joint Venture provides both the capital and a partner that has a long history of industry experience. We look forward to a successful relationship with Sumitomo."

About Quadra FNX Mining Ltd. (TSX:QUX)

Quadra FNX Mining Ltd. is a leading mid-tier copper mining company with corporate offices in Vancouver, B.C. and Toronto, Ontario. Quadra FNX produces copper, nickel and precious metals from its operating mines: Robinson in Nevada, Carlota in Arizona, Franke in northern Chile, and McCreedy West, Levack, which includes Morrison, and Podolsky in Sudbury, Ontario. The Company has two key development projects, including the Sierra Gorda copper-molybdenum project in Chile, and the Victoria project, an advanced exploration project in Sudbury. Quadra FNX employs approximately 2,500 people in North and South America.

Contact Information

  • Media and Investor Relations Contact:
    Derek White
    Executive Vice President, Corporate Development

    Nawojka Wachowiak
    Vice President, Investor Relations
    (416) 985-8317