VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 24, 2011) - Lumina Copper Corp. (TSX VENTURE:LCC) ("Lumina" or the "Company") is pleased to announce that the Company intends to complete a strategic reorganization of its business. Lumina's royalty interests and certain non-core assets will be transferred to a newly incorporated company to be called Lumina Royalty Corp. Shareholders of the Company will receive shares in Lumina Royalty Corp. in proportion to their shareholding in Lumina.
Lumina Royalty Corp. will hold the following key assets:
A 1.5% Net Smelter Return ("NSR") royalty on Teck Resources Ltd's Relincho copper/molybdenum advance development project located in Region IV, Chile. A 1.5% NSR royalty on Los Andes Copper Limited's Vizcachitas copper/molybdenum project located in Region V, Chile. A 1.08% NSR royalty on Lumina Copper Corp.'s Taca Taca copper/gold/molybdenum project located in Salta Province, Argentina. A copper royalty, including the advance royalty payments (excluding the May 2011 US $4 million payment), on Coro Mining Corp's San Jorge copper/gold/molybdenum project located in Mendoza Province, Argentina. A 1.5% NSR royalty on all metal production, other than copper, on Coro Mining's San Jorge copper/gold/molybdenum project.
The Taca Taca copper/gold/molybdenum project will remain in Lumina Copper Corp. along with the necessary cash to fund the Company's ongoing exploration and development program.
It is intended that, as part of the reorganization, Lumina's current shareholders will receive shares of Lumina Royalty Corp. by way of a return of capital on their shares of the Company. The return of capital will require the approval of the Company's shareholders at a shareholders meeting, which the Company expects to hold by the end of May 2011. Lumina has no plans to seek a public listing for Lumina Royalty Corp.'s shares in the near term.
The Company is completing the reorganization in order to focus on the development of its Taca Taca copper/gold/molybdenum project. The Taca Taca project, comprising approximately 2,500 hectares, is located in the Puna region of north western Argentina in Salta Province, approximately 230 kilometres west of the provincial capital of Salta and 90 kilometres east of the world's largest copper mine, Escondida. In January, the Company announced that it had initiated a 43,000m drill program and a comprehensive engineering and metallurgical testing program at Taca Taca. Both programs are expected to be completed by the end of 2011.
On October 9, 2008, Lumina announced it had received an independent National Instrument 43-101 ("NI 43-101") compliant mineral resource estimate for the Taca Taca project that at a 0.4% copper equivalent cut-off contained inferred mineral resources of 841 million tonnes grading 0.64% copper equivalent, containing 8.71 billion pounds of copper, 2.97 million ounces of gold and 333.70 million pounds of molybdenum(1).
Additional information on the Taca Taca project, including the NI 43-101 technical report "Amended Taca Taca Technical Report" dated January 22, 2010 by Robert Sim, P.Geo., can be found on Lumina's website (www.luminacopper.com) and on SEDAR (www.sedar.com).
Leo Hathaway, P.Geo., Vice President, Exploration and the Qualified Person (as defined by NI 43-101) for the Taca Taca project, has reviewed and approved the content of this press release.
(1) The copper equivalent cut off grade used in the calculation of the mineral resource estimate was determined using US$1.50 / lb copper, US$600 / oz gold and US$6.00 / lb molybdenum and was not adjusted for metallurgical recoveries as these remain uncertain. The formula used in the calculation was as follows: CuEQ = Cu% + (Au g/t x 0.583) + (Mo% x 6).
LUMINA COPPER CORP.
David Strang, President & CEO
CAUTION REGARDING FORWARD LOOKING STATEMENTS: This news release contains "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to the completion of a reorganization of the Company and the transfer of certain of the Company's passive assets to a company to be incorporated, the future price of gold, silver, copper and molybdenum, and the Company's commitment to, and plans for developing any of its projects. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "can", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: the risks of the Company not obtaining the required approvals to proceed with the proposed reorganization, tax consequences of the proposed reorganization, risks related to the exploration and potential development of the Company's projects, risks related to international operations, the actual results of current exploration activities, conclusions of economic evaluations, changes in project parameters as plans continue to be refined, future prices of gold, silver, copper and molybdenum, as well as those factors discussed in the sections relating to risk factors of our business filed in the Company's required securities filings on SEDAR. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results to be materially different from those anticipated, described, estimated, assessed or intended.
There can be no assurance that any forward-looking statements 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 statements. The Company does not undertake to update any forward-looking statements that are incorporated by reference herein, except in accordance with applicable securities laws.
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term defined is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
For more information, please contact
Lumina Copper Corp. David Strang President & CEO + 604 646 1880 + 604 687 7041 (FAX) firstname.lastname@example.org www.luminacopper.com