SMM11, June 1 -: Excelsior Mining plans to complete construction of its Gunnison copper mine in southeastern Arizona and go into production next year after reaching a $75 million project financing plan with Triple Flag Mining Finance. Triple Flag will buy $65 million worth of copper from Gunnison and $10 million from Excelsior. The package includes options for Triple Flag and provides an additional $65 million for the second phase of the project's expansion.
Under the second phase plan, Excelsior could expand production to 75 million pounds per year, and under the third phase plan, it could expand to 125 million pounds per year.
According to the January 2017 feasibility study, Gunnison has a net present value after tax of $807 million, a discount rate of 7.5 per cent and an after-tax internal rate of return of 40 per cent. The initial construction will cost US $46.9 million and the payback period will be 2 to 8 years.
The company currently has a market capitalization of $217 million.
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