Company News
| April 08, 2010 Van Dyke Copper Mine Purchase | |
| Vancouver, B.C.: Bell Copper Corporation ("Bell Copper" or the "Company") (TSX-V Symbol: BCU) is pleased to announce that the Company has concluded a binding letter of intent on an option to purchase (the "Purchase Option") the Van Dyke Copper Mine (the "Property") located in Miami, Arizona. Under the terms of the Purchase Option, the Company will pay $25,000 for the exclusive right to purchase the Property (the "Purchase"). The Purchase is subject to a 2.5% Net Smelter Royalty (the "NSR") on all mineral production, 2% of which may be purchased for a period of three years by the payment of US$1.5 million for each 1% purchased. The Purchase is subject to the acceptance of the TSX Venture Exchange. The Van Dyke project contains 1100 acres of patented ground and was developed in the early 1900s when a shaft was sunk to a depth of 1692 feet. The mine produced 11.8 million pounds of copper between 1929 and 1945 from azurite, malachite, chrysocolla and tenorite ores grading just over 5.0 % Cu per ton. Between 1968 and 1980 Occidental Minerals drilled seventy exploration holes (sixty-two of which encountered measureable copper mineralization) on the Property. Forty-six of these holes were used to estimate a non-NI43-101 compliant, historical resource of 112,000,000 tons at a grade of 0.52% copper. These historical resources at the Property are to be used for geological purposes only. They have not been adequately reviewed by a Qualified Person to be reported as current resources and they cannot be relied upon. Metallurgical test work by Occidental indicated that between 70% and 80% of this copper could be recovered by means of in situ sulfuric acid leaching, with 3.8 pounds of acid being consumed per pound of copper produced. Under the Purchase, the Company will make total cash payments of US$ 2.5 million (the "Purchase Price") via an initial cash payment of US$ 500,000 and the issuance of 2 million shares on the expiration of the due diligence period on January 1, 2011. Subsequently, the Company will pay the remainder of the Purchase Price by making annual Purchase payments of US$ 250,000 for a period of eight years for an aggregate total of US$ 2.0 million. The annual Purchase Price payments are to be considered pre-payments against the NSR and will be deducted from the amounts owing under the NSR upon initiation of production from the Property. It is expected that upon completion of the due diligence period and following the payment of the initial cash payment and share issuance, a drilling program will be initiated under the direction of Dr. Timothy Marsh in an effort to produce a NI43-101 compliant resource on the Property. The Company anticipates that the Van Dyke project can provide for continuity of low cost copper cathode production following the mining of the leachable copper resources at the La Balsa project in Mexico. All resources at the Van Dyke project are historical in nature and are to be used for geological purposes only. There has been insufficient exploration to define a current mineral resource and it is uncertain if further exploration will result in the historical resource being delineated as a current mineral resource. These historical resources may lack original assay sheets, specific gravity determinations and quality control data, and must only be regarded as historical resources that cannot be relied upon by anyone. They have not been adequately reviewed by a Qualified Person to be reported as current resources. The contents of this News Release were prepared and/or supervised by Dr. Timothy Marsh, Ph.D., P.Eng., the Company's President and a Qualified Person. Under the Spinco Transaction announced in Stockwatch on Dec. 7, 2009, the residual BellCo, to be named Phoenix Copper, will retain the Company's interest in the Van Dyke Project, residual interest in the Granduc Project and the La Balsa Project. The Spinco transaction is subject to shareholder as well as court approval and subject to the acceptance of the TSX Venture Exchange. Further particulars will be announced in due course. About Bell Copper Bell Copper is focused on the exploration and development of copper assets in the Americas through internal efforts and via strategic partnerships. For more information on Bell Copper: www.bellcopper.net On behalf of the Board of Directors of Bell Copper Corporation "Michael Werner" Michael Werner, CEO & Director For further information please contact the Company Tel: 604 669-1484 or email: info@bellcopper.net THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE. Forward-looking statements in this release are made pursuant to the 'safe harbor' provisions of the Private Securities Litigation Reform act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties | |
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