MILFORD, Utah, Sept. 20, 2011 /PRNewswire/ -- Copper King Mining Corporation ("Copper King") (PINK SHEETS: CPRKQ) announced today that it and its wholly-owned subsidiary, Western Utah Copper Company (the "Companies"), obtained Bankruptcy Court approval for a sale of substantially all of their assets to CS Mining, LLC ("CS"). An order approving the sale was entered by the Bankruptcy Court on August 23, 2011. It is anticipated that the sale transactions will close by the end of September, 2011. CS' approved purchase price is composed of cash, the assumption of certain secured and unsecured debt, issuance of a promissory note, issuance of an equity interest and warrants, with a total stated value in excess of $110 million. Copper King will receive for the benefit of its creditors and stockholders cash, assumption of debt, 1% of the common voting equity in CS Mining as well as 2% in warrants for CS common voting equity. CS advised the Companies that, pending the closing, it is committed to funding necessary operating costs and that, after the closing, it intends to reopen the Companies' mill and resume mining operations.
John Bryan, CEO of the Companies, commented, "This is fantastic news for the Milford community, former employees, unsecured creditors, past and present secured creditors, and equity holders. After a contentious struggle, we reached a consensual agreement with no objections from the primary constituents to sell the Companies' assets. The assets were marketed to the international investment community for nearly 10 months and we are delighted that CS will be the new owner. We are particularly pleased that CS intends to resurrect the mining operations which will have a very positive impact on employment in the Milford community."
About Copper King and Western Utah Copper Company:
Copper King Mining Corporation (CPRKQ) is an investment company which, among other things, specializes in the acquisition, exploration, and development of mining and mineral properties. In January 2008, the company merged with Western Utah Copper Company (WUCC) its wholly owned Utah subsidiary.
Cautionary Information Regarding Forward-Looking Statement:
Forward-looking statements contained in this press release are made under the Safe Harbor Provision of the Private Securities Litigation Reform Act of 1995. Any such statements are subject to risks and uncertainties that could cause actual results to differ materially from those anticipated.
SOURCE Copper King Mining Corporation