Copper North and Yukon Energy Corporation Sign Letter of Intent
VANCOUVER, Jan. 29, 2013 /PRNewswire/ - Copper North Mining Corp. ("Copper North" or "the Company") (TSX.V: COL) is pleased to announce it has signed a Letter of Intent ("LOI") with the Yukon Energy Corporation ("YEC") setting out essential elements of a Power Purchase Agreement ("PPA") and ancillary agreements to be negotiated, executed and delivered between the parties for the supply of electricity by YEC to the Company at the Carmacks Copper Project ("the Project") Yukon, Canada.
The PPA will contain the terms and conditions upon which YEC will supply Copper North with the electricity requirements for the Project from YEC's grid-based electricity generation through YEC's transmission grid (the "Grid") and transmission connection from the Project to the Grid.
Subject to the approval of the Yukon Utilities Board (the "YUB"), the LOI provides that key provisions of the PPA will include:
- Specification of project power requirements, including maximum megavolt-ampere loads as well as projected annual energy demand during the life of the project;
- Funding arrangements for grid connection, system upgrades, operating costs related to grid connection and removal and decommissioning costs; and
- Rate charges applicable to all major industrial customers.
The Company anticipates that YEC will serve the Project from the existing Carmacks-Stewart 138 kV transmission line, built along the Klondike Highway. A new substation (tap-off) in the vicinity of McGregor Creek would feed an 11 km 34.5 kV transmission spur-line to the Project's main substation, terminating on a dead-end structure ahead of the site substation.
Copper North will provide the capital (currently estimated at $9.7 million) for the design, permitting and construction of the tap-off from the existing Grid, and 11 km 34.5 kV transmission line.
President and Chief Executive Officer, Dr. Sally Eyre stated "we have reached yet another milestone at the Carmacks Copper Project. Following completion of the Feasibility Study at the end of 2012, the LOI now enables us to advance negotiations with YEC regarding a PPA for the supply of electricity".
About Copper North
Copper North is a Canadian mineral exploration and development company. Copper North's assets include the Carmacks Copper Project located in the Yukon, and the high-grade, stratiform-copper Redstone Property, located in the Northwest Territories. Copper North trades on the TSX Venture Exchange under the symbol COL.
Please visit www.coppernorthmining.com.
On behalf of the Board of Directors:
"Sally L. Eyre"
Dr. Sally L. Eyre
President, CEO and Director
This news release includes certain forward-looking information or forward-looking statements (collectively "Forward-Looking Information") for the purposes of applicable securities laws. Forward-Looking Information includes, but is not limited to, statements with respect to the PPA, the ancillary documents thereto and provisions to be included therein; possible events, conditions or performance that are based on assumptions about future courses of action; activities relating Carmacks and the matters contemplated under the LOI, the PPA and the documents and agreements ancillary thereto; design, permitting, construction and infrastructure time lines and requirements; capital cost estimates. In certain cases, Forward-Looking Information can be identified by the use of words and phrases such as "plans", "expects" or "does not expect", "scheduled", "estimates", "anticipates", "potential", "recommends" or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would" or "will be taken", "occur" or "be achieved". These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements to differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations include, among others, the timing and success of negotiations and finalization of the PPA and the documents and agreements ancillary thereto, market prices, availability of capital and financing, general economic, market or business conditions, uninsured risks, regulatory changes, availability of personnel, materials and equipment, timeliness of government and other regulatory approvals, unanticipated environmental impacts on operations and other exploration risks detailed herein and from time to time in the filings made by the Company with securities regulators. In making the forward-looking statements, the Company has applied several material assumptions including, but not limited to, the assumptions that the matters contemplated under the LOI will proceed as planned, approval of the YUB will be obtained in a timely manner, market fundamentals will result in sustained metals and mineral prices, current exploration and other objectives concerning Carmacks can be achieved and that the Company's other corporate activities will proceed as expected and any additional financing needed will be available on reasonable terms. Although the Company has attempted to identify important factors that could affect the Company and may cause actual actions, events or results to differ materially from those described herein, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. 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 statements. Accordingly, readers should not place undue reliance on Forward-Looking Information. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise except as otherwise required by applicable securities legislation.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Copper North Mining Corp.