Tenke Mining Corp.

Tenke Mining Corp.

June 08, 2006 09:00 ET

Tenke Mining Corp.: Rio Doce Signs Investment Agreement on Las Flechas and TNR Northern Property Projects

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - June 8, 2006) - Tenke Mining Corp. ("Tenke" or "the Company") (TSX:TNK) is pleased to announce that Companhia Vale Rio Doce and its wholly owned subsidiaries Rio Doce Argentina S.A. and Compania Minera Latino-Americana Limitada (together "CVRD") have signed a comprehensive Investment Agreement ("the Agreement") providing CVRD with an option to take a controlling interest in Tenke's holdings in the Las Flechas, TNR Northern Properties and a limited number of other Tenke-staked properties in Argentina and Chile ("the Properties"). The Properties are predominantly located in San Juan Province, Argentina.

Under the terms of the Agreement, CVRD have the right to earn 52.5% of Tenke's interests in the Properties in return for funding exploration expenditures of US $7 million by April 18, 2009. CVRD can step in as operator at any time, however, initially Tenke's Argentine exploration staff will continue with exploration on behalf of CVRD.

Exploration by Tenke to date on the Properties has advanced several copper/gold targets which will be the subject of the coming season's exploration priorities. The most advanced of these projects include the Cerro Dante and La Aparecida targets on the Las Flechas mineral concessions and the Ranchillos and Ritsuko targets within the TNR Northern Property package. An exploration budget of US $1.55 million has been defined for the first period of the CVRD earn-in to be spent on parallel programs on several of the projects.

CVRD is one of the largest, fastest growing diversified mining companies in the world, with an increasing exploration presence in both Chile and Argentina. Tenke is pleased to have a company with the depth of CVRD involved in the advancement of the Properties which allows additional progress to be made on these targets in parallel to the multiple project copper/gold porphyry drilling program Tenke has at the nearby Vicuna, Jose Maria and Sillimanita projects.

On Behalf of the Board

Paul K. Conibear, President

Contact Information

  • Tenke Mining Corp.
    Sophia Shane
    Corporate Development
    (604) 689-7842
    (604) 689-4250 (FAX)