Excelsior to Purchase Johnson Camp Mine

Excelsior Mining (TSXV:MIN) through its wholly owned Arizona subsidiary, will purchase all assets of Nord Resources Corporation, specifically, the Johnson Camp Copper Mine. The mine is located adjacent to Excelsior’s Gunnison copper project in Arizona.
Excelsior also announced it has entered a binding term sheet for a concurrent financing of US$12 million.
As quoted in the press release:

Under the terms of the Purchase Agreement, Excelsior will acquire, through the court-appointed receiver (the “Receiver”), the Johnson Camp Mine including all fee title property, all patented and unpatented mining claims, all improvements, equipment, certificates of deposit, reports and records. Subject to court approval all assets will be transferred to Excelsior free and clear of all liens, and all back-taxes are to be paid by the Receiver from the proceeds of sale. Excelsior will acquire Nord’s Johnson Camp assets for total consideration of US$8.4 million under the following terms:

• US$5.2 million due on or prior to closing;
• US$1 million due on or before December 31, 2016; and
• US$2.2 million due on or before December 31, 2017.

Johnson Camp mining claims are contiguous with Excelsior’s Gunnison Project. The property consists of 59 patented lode mining claims, 117 unpatented lode mining claims and fee simple lands. The existing facilities includes a 4500 gallon per minute solvent extraction plant, a tank farm, an electrowinning plant with 88 electrowinning cells with capacity of 25 million pounds of copper cathode per annum, solution storage ponds, a truck shop, core storage building, offices, warehouse, laboratory, mechanical shop, a primary and secondary crusher, and various other equipment. Johnson Camp stopped mining operations in 2010 and has since been producing small amounts of copper from residual leach pads. The mine has been in receivership since 2014.
The closing of the Johnson Camp Transaction is subject to several conditions including the receipt of a final and non-appealable order from the Superior Court of Arizona, receipt of all consents required for the transaction, all non-permitted liens on the assets being discharged (subject to court approval) and the receipt of all regulatory approvals, including the approval of the TSX Venture Exchange. Closing is expected to occur in late November 2015.

Excelsior president and CEO, Stephen Twyerould, said:

This is an exciting development for the Company. The SX-EW plant at Johnson Camp is in good working order, and once our Gunnison Project to the south is permitted and ready for production, we expect that the copper solutions can be easily processed through the existing Johnson Camp facilities.  This is expected to allow us to significantly reduce our upfront capital requirements and the time required for the start-up of the Gunnison Project.  The Company also intends to thoroughly examine the potential of Johnson Camp, especially since this is the first time in its 130 year history that the entire Johnson Camp district has been consolidated under one ownership.

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