Anfield Resources Inc. Signs Agreement With Blue Zen Memorial Parks ("BZM") to Advance Its Binghampton Copper Queen Copper Project in Arizona
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb. 13, 2014) -
Anfield Resources Inc. (TSX VENTURE:ARY) ("Anfield" or "the Company") is pleased to announce that it has signed a Purchase Agreement ("the Agreement"), subject to due diligence, with Blue Zen Memorial Parks ("BZM") to jointly advance Anfield's Binghampton Copper Queen (BCQ) copper project in Arizona. The initial stage of the Agreement includes a $2 million project-level investment by BZM - to be used to delineate an NI43-101-compliant copper resource estimate at BCQ - with an Operative Date no later than May 15th, 2014. Subject to the results of the NI 43-101 copper-equivalent resource estimate, Anfield will sell up to 50% of the BCQ project to BZM. Anfield has also agreed to provide BZM with a right of first refusal with regard to the BCQ project's production off-take agreement, whereby BZM would purchase 100% of mine production over the life of the mine.
The company of BZM's principal shareholder, TDL, consists of 20 operational entities which generate over $1.8 billion in sales on an annual basis. Moreover, it has land reserves of 9.3 million square metres and holds interests in mineral exploration and development assets worldwide. Even more importantly, TDL has begun to implement a vertical integration strategy in order to secure long-term copper resource supply and distribution channels. To this end, TDL is both currently building the Lianyungang Copper Processing Project, an 800,000-ton copper smelting facility in Jiangsu Province, China and pursuing the acquisition of copper mining assets across the globe.
"We are extremely pleased to sign this Agreement with BZM in order to advance the BCQ copper project," stated Corey Dias, CEO of Anfield. "As a reminder, BCQ is located in the Arizona volcanogenic massive sulphide (VMS) Belt of central Arizona, where a number of large, multiple-grade copper deposits have previously been discovered and placed into production. The largest of the mines in the VMS Belt - United Verde - produced approximately 2.5 billion pounds of copper at an average grade of 4.36% before closing down in the 1960s.
In BZM we believe we have found a partner who has a significant incentive to see the BCQ project advance to the production stage - reflected in its desire to secure the production off-take agreement at an early stage - namely, its need to maximize capacity utilization at its copper smelter. Moreover, Anfield's success in negotiating a production off-take agreement places it in a unique position vis-a-vis many of its junior resource peers, as such an agreement - which can be used as collateral to secure debt lending for project capex, a crucial component of the building of a mine - materially increases the likelihood that a project would reach the production stage". Under the terms of the Agreement, Anfield will sell up to 50% of the BCQ project, subject to the results of the NI43-101 resource estimate; the initial $2 million investment will either represent: 1) 20% of the BCQ project, if the resource estimate is equal to, or greater than, 2 billion pounds of copper-equivalent; or 2) 50% of the BCQ project, if the resource estimate is less than 2 billion pounds of copper-equivalent. If the resource estimate is greater than 2 billion pounds, BZM will have the option to acquire an additional 30% interest in the BCQ project - in addition to its initial 20% ownership stake - at a purchase price of $1 million per 10% increment.
Subject to certain milestones, this Agreement also provides a comprehensive framework for the: 1) joint funding, and preparation of, a Preliminary Economic Assessment; 2) joint funding, and preparation of, a Feasibility Study; and 3) joint funding, and construction of, the mine and subsequent copper production. The Agreement also gives BZM the right of first refusal with regard to the BCQ production off-take agreement, providing BZM with an option to purchase 100% of mine production over the life of the mine, priced at a 10% discount to the LME copper spot price.
About Binghampton Copper Queen (BCQ)
The Binghampton Copper Queen project, located 27 kms southeast of Prescott, Arizona, and within the Arizona VMS Belt, consists of 2,032 hectares of both patented and State land. The two past-producing copper mines on the property - Binghampton and Copper Queen - are separated by a mile-wide valley. According to the Arizona Geological Survey, Binghampton produced approximately 8Mlbs of copper at an average grade of 3.1% prior to its closing in the 1920s, while Copper Queen produced less than 100Klbs. According to the Arizona Geological Survey, the Arizona VMS Belt has 48 past and present producers and contains 70 known deposits. Combined production in the Arizona VMS Belt totalled 55.3 million tons of copper at an average grade of 3.6%. The Unite Verde mine, one of four mines which produced 1 million tons or more of copper, is the largest in the area and produced 33.5 million tons at an average copper grade of 4.36%.
About Anfield Resources Inc.
Anfield is a publicly traded corporation listed on the TSX-Venture Exchange (TSX VENTURE:ARY) and is engaged in mineral exploration, development and production in the United States and Chile. Its focus is on acquiring and developing an array of strategic mineral projects, which, in addition to the BCQ Project, are summarized below:
The North Star Copper Project, located less than 50 miles northwest of Tucson, targets relatively shallow oxide copper at the historic North Star site in the heart of copper country in southern Arizona. The Project consists of 200 mining claims covering approximately 4,000 acres, and has been permitted to conduct exploration drilling at 16 sites.
The Aura Project, 20 miles east of Copiapo, is a nascent copper production operation in Atacama, Chile, one of world's foremost copper producing regions. Aura consists of eight land concessions totalling over 2,800 acres. From these concessions, copper-mineralized material at the Project is mined and stockpiled for shipment to the Enami Processing facility, a government mining agency whose sole mandate is to facilitate the operations of small and medium-sized mining companies.
Anfield's Uranium assets include 239 mining claims and nine state leases on over 10,000 acres in southeastern Utah, and 24 mining claims in Arizona. The mining claims are located in historical uranium producing regions, targeting areas where past uranium mining or prospecting occurred. The claims are within a 75-mile radius of the White Mesa mill, the only operating conventional uranium mill in the US, which potentially provides Anfield with an opportunity to toll mill its uranium ore.
To find out more about Anfield, visit its website at www.anfieldresources.com.
About Blue Zen Memorial Parks Inc.
Blue Zen Memorial Parks Inc., a publicly traded corporation listed on the Canadian Securities Exchange, recently expanded its strategic focus to include mining development and mineral exploration, with the ultimate aim of acquiring and integrating mining assets. The Company currently has 36,401,420 issued and outstanding common shares.
R. Tim Henneberry, P.Geo., Advisor to Anfield is the Qualified Person as defined in National Instrument 43-101, who has reviewed and approved the technical content of this news release.
On behalf of the Board of Directors
ANFIELD RESOURCES INC.
Corey Dias, Chief Executive Officer
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