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SOUTH CROFTY INVESTMENT SECURED
Cornish Minerals Limited, the parent company of mine operator Western United Mines Limited, has announced that Stage 1 of an earn-in agreement with Canada-based Celeste Copper Corporation has been completed. The agreement means that Celeste has acquired an 18 per cent interest in the development of South Crofty Mine, West Cornwall and Norman Brewster, President and CEO of Celeste, will take a seat on the Cornish Minerals’ board.
"I am delighted that we have successfully concluded the first stage of the earn-in agreement and look forward to working closely with our colleagues at Celeste," said Alan Shoesmith, Chief Executive of Western United Mines. "This is a very exciting milestone in South Crofty's progress towards production.
"Mr Brewster brings a wealth of experience and technical ability to the South Crofty project and his abilities will assist greatly in the challenges ahead."
Norman Brewster said: "We are very pleased to have achieved this stage of financing and are excited by the prospect of advancing South Crofty's exploration programme."
As announced in a news release dated 25 May 2011, Celeste entered into an earn-in agreement with Cornish Minerals Limited to acquire an eventual 60 per cent equity interest – with the ability to go to 100 per cent based on a valuation after having earned the 60 per cent. Stage 1 aimed to achieve up to 25 percent interest. The remaining 7 percent Stage 1 balance is expected to be completed soon.
Ends 29 November 2011
Media enquiries: Sue Bradbury PR Tel: 01872 863863
Notes to editors
1. Alan Shoesmith will be available for interview at South Crofty from 2pm on Tuesday 29 November
2. An"earn-in agreement" is a typical funding mechanism in the mining industry,whereby an investor/company (in this case Celeste) can gain ["earn"] a certain ownership in a company or project (in this case the South Crofty mine) by spending an agreed [with the owner of the company or project] amount of money on the company, project and/or related assets.
