TORONTO, May 6 /CNW/ - Equinox Minerals Limited (TSX and ASX symbol: "EQN") ("Equinox" or the "Company") is pleased to report that its wholly owned subsidiary Lumwana Mining Company Limited ("LMC") has signed a five year concentrate offtake agreement (the "Agreement") with Konkola Copper Mines Plc ("KCM") for annual quantities of between 70,000 and 80,000 dry metric tonnes of concentrates from the Lumwana copper mine with an option by mutual agreement for additional annual quantities of Lumwana copper concentrates under the same terms as the Agreement. Refer to the Lumwana Technical Report (refiled April 2009) for details of Lumwana concentrate.
The copper treatment and refining charges under the Agreement are to be determined annually based on Japanese Smelter Benchmark terms.
KCM is majority owned by Vedanta Resources Plc, a London listed metals and mining company. KCM recently installed and commissioned the new Nchanga smelter on the Zambian Copperbelt; a modern smelter with output capacity of 300,000 tpa of copper anode and 1,850 tonnes per day of sulphuric acid. KCM also operates the Nchanga and Konkola copper mines, the Nkana Refinery and is developing the Konkola Deep copper mine.
Commenting, Craig Williams, Equinox President and CEO said: "This new long term offtake agreement with KCM supplements the Company's existing long term offtake agreement with Chambishi Copper Smelter Limited and together will account for a large majority of Lumwana's budgeted production. Outside of these agreements, LMC continues to make deliveries of concentrates to international metal traders under short term contracts providing Equinox with concentrate off-take flexibility."
Craig R. Williams - President & Chief Executive Officer
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Cautionary Language and Forward Looking Statements
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This press release contains "forward-looking statements" and
"forward-looking information", which may include, but is not limited to,
statements with respect to the future financial or operating performances
of Equinox, its subsidiaries and their respective projects, the future
price of copper and uranium, the estimation of mineral reserves and
resources, the realization of mineral reserve estimates, the timing and
amount of estimated future production, estimated costs of future
production, the sale of future production and the performance of off-
takers, capital, operating and exploration expenditures, costs and timing
of the development of the Lumwana Project, the costs of Equinox's hedging
policy, costs and timing of future exploration, requirements for
additional capital, government regulation of exploration, development and
mining operations, environmental risks, reclamation and rehabilitation
expenses, title disputes or claims, and limitations of insurance
coverage. Often, but not always, forward-looking information can be
identified by the use of words such as "plans", "expects", "is expected",
"is expecting", "budget", "scheduled", "estimates", "forecasts",
"intends", "anticipates", or "believes", or variations (including
negative variations) of such words and phrases, or statements that
certain actions, events or results "may", "could", "would", "might", or
"will" be taken, occur or be achieved. The purpose of forward-looking
information is to provide the reader with information about management's
expectations and plans for 2009 and subsequent years. Readers are
cautioned that forward-looking information involves known and unknown
risks, uncertainties and other factors which may cause the actual
results, performance or achievements of Equinox and/or its subsidiaries
to be materially different from any future results, performance or
achievements expressed or implied by the forward-looking information.
Such factors include, among others, those factors discussed in the
section entitled "Risk Factors" in the Company's Annual Information Form.
Although Equinox has attempted to identify statements containing
important factors that could cause actual actions, event or results to
differ materially from those described in forward-looking information,
there may be other factors that cause actions, events or results to
differ from those anticipated, estimated or intended. Forward-looking
information contained herein are made as of the date of this document
based on the opinions and estimates of management on the date statements
containing such forward looking information are made, and Equinox
disclaims any obligation to update any forward-looking information,
whether as a result of new information, estimates or opinions, future
events or results or otherwise. There can be no assurance that forward-
looking information will prove to be accurate, as actual results and
future events could differ materially from those anticipated in such
information. Accordingly, readers should not place undue reliance on
forward looking information.
The Company has included a non-GAAP performance measure in this news
release: "cash (C1) operating cost". The Company believes that, in
addition to conventional measures prepared in accordance with GAAP,
certain investors use this information to evaluate the Company. It is
intended to provide additional information and should not be considered
in isolation or as a substitute for measures of performance prepared in
accordance with GAAP. Cash (C1) operating cost is a common performance
measure in the copper industry and is prepared and presented herein on a
basis consistent with the industry standard Brook Hunt definitions. Cash
(C1) operating costs includes direct cash costs, minesite and realization
costs through to refined metal.
Certain technical information in this release is summarized or extracted
from the "Technical Report on the Lumwana Project, North Western
Province, Republic of Zambia" dated June 2008 as re-filed in April 2009
(the "Technical Report"), prepared by Ross Bertinshaw, Principal, Golder
Associates Pty Ltd, Daniel Guibal, Corporate Consultant, SRK Consulting
(Australasia) Pty Ltd, Andrew Daley, Director, Investor Resources Finance
Pty Ltd, and Robert Rigo, Vice-President - Project Development, Equinox,
each of whom is a "Qualified Person" in accordance with National
Instrument 43-101 -Standards of Disclosure for Mineral Projects ("NI 43-
101"). Information of a scientific or technical nature contained in this
press release arising since the date of the Technical Report is provided
by Equinox management and was prepared under the supervision of Robert
Rigo, Vice-President - Project Development or John Cooke, Exploration
Manager, each of whom is a "Qualified Person" in accordance with NI 43-
101. Readers are cautioned not to rely solely on the summary of such
information contained in this release, but should read the Technical
Report which is posted on Equinox's website (www.equinoxminerals.com) and
filed on SEDAR (www.sedar.com) and any future amendments to such report.
Readers are also directed to the cautionary notices and disclaimers
contained herein and therein.
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For further information: Craig R. Williams, (President and Chief Executive Officer); Michael Klessens, (V.P. Finance and CFO), Phone: +61 (0) 8 9322 3318, Email: equinox@equinoxminerals.com; Or Kevin van Niekerk, (V.P. Investor Relations/Corporate Development), Phone: (416) 865-3393, Email: kevin.van.niekerk@equinoxminerals.com; For information on Equinox and technical details on the Lumwana Project please refer to the company website at www.equinoxminerals.com
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