1. 1
COBRE DEL MAYO
Investor Presentation
October, 2014
(all amounts in USD unless otherwise noted)
Strictly Confidential
2. The information contained herein has been prepared to assist interested parties in making their own evaluation of the Piedras Verdes Project and does not purport
to be all inclusive or to contain all of the information that a prospective purchaser may desire.
Forward Looking Statements
This Investor Presentation and other communication with investors include forward-looking statements. These forward- looking statements include, without
limitation, statements regarding our future financial position and results of operations, our strategy, plans, objectives, goals and targets, future developments in the
markets in which we participate or are seeking to participate or anticipated regulatory changes in the markets in which we operate or intend to operate. In some
cases, forward-looking statements can be identified by terminology such as “aim,” “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,”
“guidance,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should” or “will” or the negative of such terms or other comparable terminology.
By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur
in the future. We caution potential investors that forward-looking statements are not guarantees of future performance and are based on numerous assumptions
and that our actual results of operations, financial condition and liquidity may differ materially from (and be more negative than) those made in, or suggested by, the
forward-looking statements contained in the Offering Memorandum for the Cobre del Mayo Notes. In addition, even if our results of operations, financial condition
and liquidity and the development of the industry in which we operate, are consistent with the forward-looking statements contained in this Management Discussion
and Analysis Report, those results or developments may not be indicative of results or developments in subsequent periods. Important factors that could cause
these differences include, but are not limited to:
2
Disclaimer and Forward Looking Statements
• risks related to our competitive position;
• risks related to our strategy and expectations about growth in demand for
copper and business operations, financial condition and results of
operations;
• risks related to the revocation, expropriation or termination of our mining
concessions or our water concessions or of the agreements pursuant to
which we explore or exploit mining concessions belonging to third parties;
• the inability to be compensated fairly in the event of termination of our
mining concessions or our water concessions;
• the impact of fluctuations in the market price for copper;
• the impact of changes in the prices of raw materials, labor and our products;
• our relationship with unions and our ability to negotiate collective bargaining
agreements;
• the availability of materials and equipment;
• our access to funding sources, and the cost of the funding;
• changes in regulatory, administrative or economic conditions affecting the
mining industry, including government interpretations and policies;
• the application and enforcement of environmental laws and regulations;
• risks related to Mexico’s social, political or economic environment;
• the impact of changes in the end uses of our products;
• fluctuations in the value of the U.S. dollar against the Mexican peso;
• risks associated with market demand for and liquidity of the notes; and
• changes in the taxation of our business.
We undertake no obligation to update or revise any forward-looking statement, whether as a result of new information or future events or developments.
COBRE DEL MAYO 2
3. 3
Index
I. Company Overview
II. Industry and Commodity Overview
III. Operational Environment
IV. Historical Financial Performance
V. Conclusion
VI. Appendix
COBRE DEL MAYO
4
16
20
22
25
28
3
5. 5
Cobre del Mayo Snapshot
§ Cobre del Mayo is a Mexican mining company that operates the Piedras Verdes (“PV”) copper mine in the north-western
state of Sonora, Mexico
§ PV is the third largest copper mine in Mexico, and it produces LME Grade A copper cathode
§ It began commercial production in 2006
§ Purchased by Invecture in mid 2009
§ During 2012 a flotation circuit owned by Kupari Metals with capacity of 5,500 tons per day (“tpd”) was built and in
April 2013 copper concentrate production began
§ In October, 2014, CDM purchased 100% of the common stock of Kupari Holdings the holding company for Kupari
Metals (“Kupari Acquisition”) owner of the flotation plant adjacent to Piedras Verdes
§ Current annual capacity of 34,500 t of cathode from SX-EW and 14,000 t of copper contained in concentrate
§ Mineral Reserves of 1.13 million tons of copper and 15+ year mine life
Piedras Verdes Advantaged Location and Access
Sonora
Ciudad
Obregon
Navojoa
Huatabampo
Chihuahua
Piedras
Verdes Alamos
P
Sinaloa
Guaymas
Baja
California
C
Deep Water Port
Private Airport
Commercial Airport
Railway
Rail Station
Major Highway
P
C
§ All infrastructure is in place
§ Easily accessible by air, road, rail and ports
§ Extremely competitive transportation costs for off-takers
given PV’s location and nearby infrastructure
§ Power: Connected to CFE grid to the mine owned and
maintained substation with continuous capacity of 25
MW; CDM is CFE’s single largest customer in the area
§ Water: CDM holds 7 titled water concessions for ~3.9
Mm³/yr while the requirement for the operation of the PV
Mine is ~2.0 Mm³/yr
COBRE DEL MAYO 5
6. 6
Cobre del Mayo Highlights
Strong cash flow generation enables deleveraging in the short term
Reserve of 1.13 million tons of copper and 15+ year mine life supported by independent 43-101
released in October 2014
Cash cost and production enhancement program initiated 2Q14 with six low capex initiatives
to be completed 1H15
Objective: LOM C1 cash cost of $1.65/lb
Low sustaining capex estimated at $14.2 million annually LOM
Located in low risk mining friendly jurisdiction; high quality infrastructure; excellent environmental safety,
community relations, and labor record
COBRE DEL MAYO 6
10
7. Key Initiatives Implemented Since Invecture Acquisition
§ In 2009, changed from contract mining to owner operation and purchased the former contractor’s equipment fleet.
7
In 1H14 acquired 6 CAT 789 trucks and a CAT 6050 hydraulic shovel
§ Purchased, re-engineered and installed a crushing, screening, conveying and stacking system
§ Diversification of processes:
— Crush for Leach, Run of Mine (ROM) leach, and SX/EW produce copper cathode
• Installed capacity of 87 tpd, increasing to 97 tpd in 2H15, with additional cells expanding to 105 tpd
— Flotation plant produces 37 tpd of copper contained in concentrate and will expand to approx. 45 tpd.
• Plant is operating at 6,000 tpd, and upgrades to process 8,200 tpd are planned for completion by 1H15
• The Kupari Acquisition fully integrates the flotation and copper concentrate production into CDM
• Simplifies and optimizes ore allocation among processes
• Facilitates process improvements that involve both heap leaching and flotation
• Diversifies operational risk across two processes and products
Cathode and Cu Contained in Concentrate Monthly Production Evolution (t)
Cathode( Copper(contained(in(concentrate(
Acquisi2on(by(
Invecture(
!543!!
!5,000!!
!4,500!!
!4,000!!
!3,500!!
Tons!
!3,000!!
!2,500!!
!2,000!!
!1,500!!
!1,000!!
!500!!
!%!!!!
3,798
Jan!
Feb!
Mar!
Apr!
May!
Jun!
Jul!
Aug!
Sep!
Oct!
Nov!
Dec!
Jan!
Feb!
Mar!
Apr!
May!
Jun!
Jul!
Aug!
Sep!
Oct!
Nov!
Dec!
Jan!
Feb!
Mar!
Apr!
May!
Jun!
Jul!
Aug!
Sep!
Oct!
Nov!
Dec!
Jan!
Feb!
Mar!
Apr!
May!
Jun!
Jul!
Aug!
Sep!
Oct!
Nov!
Dec!
Jan!
Feb!
Mar!
Apr!
May!
Jun!
Jul!
Aug!
Sep!
Oct!
Nov!
Dec!
Jan!
Feb!
Mar!
Apr!
May!
Jun!
2009! 2010! 2011! 2012! 2013! 2014!
COBRE DEL MAYO 7
8. 8
Stable Low Risk Operations and Processes
COBRE DEL MAYO
§ $327.1 M in capex has been invested since 2009 with
limited sustaining capex going forward, estimated at $14.2
M/yr LOM
§ Ore processing method is chosen according to grade,
mineralization, and leaching and flotation characteristics
to provide the best overall economics using: (i) ROM heap
leach (ii) crushed ore heap leach (iii) ore for concentration
8
16
9. 9
Piedras Verdes Project Today1
§ The PV Mine has been transformed into a high quality copper producing asset with strong operating metrics and
competitive Cash Cost
— LTM 2Q14 sales totaled $288.9 million
• Copper Cathode:
• Since January 2012, PV cathode production has averaged 83 tpd
• LTM 2Q14 cathode production of 28,834 t generating $207.2 million of sales
• Copper Concentrate:
• Since April, 2013, copper contained in concentrate produced has averaged 37 tpd
• LTM 2Q14 copper contained in concentrate production of 12,955 t generating $81.7 million of sales
— LTM 2Q14 EBITDA of 106.1 million
— Strong credit metrics1:
• Leverage is 2.8x Net Debt / LTM EBITDA (2Q14)
• Capitalization is 50.9% Debt / Total Capitalization (2Q14)
— Strip Ratio has declined from 3.2x in FY 2012 to 2.2x during 2Q14
Cathode & Concentrate Sales EBITDA and EBITDA Margin
$62.4 $81.7
$3.28
$3.91
$3.57
$3.31 $3.22
$78.2 $197.7 $238.2 $225.2 $207.2
$4.00
$3.00
$2.00
$1.00
$0.00
$300
$225
$150
$75
$0
FY 2010 FY 2011 FY 2012 FY 2013 2Q14 LTM
$/lb
$M
Cathode Sales ($M) Sales of Conc. ($M) Cu Price ($/lb)
33% 33%
44%
39%
37%
$26.0 $65.6 $105.7 $113.0 $106.1
$125
$100
$75
$50
$25
$0
FY 2010 FY 2011 FY 2012 FY 2013 2Q14 LTM
$M
Consolidated EBITDA ($M) Consolidated EBITDA Margin (%)
1. Gives effect to the Kupari Acquisition that has been consummated
2. Considering total debt of $320.6 M (weighted average interest rate of 10.35%) and $53.4M of Cash and Equivalents
50%
40%
30%
20%
10%
0%
%
COBRE DEL MAYO 9
11. § Cu production and recovery improvement projects will reduce unit cost by increasing Cu production and lowering
§ We expect cathode production to reach 100 tpd and copper in concentrate production to reach 40 tpd without a
significant increase in mining rate. We believe it is reasonable to expect a reduction of C1 cash cost to $1.65/lb
Capex /
EBITDA
per yr
$2.5M /
$6.0M
unit opex without major capex commitment
Project Benefit Timing
• Increase concentrate Cu production 4Q14
by approx. 4 tpd
$4.0M /
$4.5M
4Q14 $3.0M /
$5.0M
11
Opportunity for Low Capex to Achieve Significant Cash Cost Reduction
Crusher Fines
Classification
(Cathode production
increase)
• Improved recovery from highly
altered fines
• Improved ROM recovery by
eliminating fines
• Increase Cu cathode production by
between 5 - 7 tpd
4Q14
Flotation of Classifier
Slimes
(Concentrate production
increase)
Intermediate Grade Ore
Crushing
(Cathode production
increase)
• Finer crushing of intermediate grade
ore and increased tonnage of crush
to leach will increase Cu cathode
production by 5 tpd by leaching more
crushed ore with better kinetics
Description
• Separates screened fines producing
coarse leachable sands (2.5 ktpd)
and high clay slimes (1.5ktpd) from
approximately 4.0 ktpd of screened
fines grading 0.40%Tcu. Cu
recovery estimated at 80%.
• Additional flotation cells will recover
Cu from classifier slimes
• A 75% recovery is expected on
approx. 1.5 ktpd ore at 0.50% TCu
• The minus 60 mesh slimes will
produce 4 tpd of additional Cu in
concentrate
• This flotation concentrate will be
upgraded in the existing cleaner
circuit
• Increase crushed ore production by
3- 4 ktpd and reduce p80 to 3/8 inch
with estimated 8% recovery
improvement
COBRE DEL MAYO 11
12. Capex /
EBITDA
per yr
• Reduce unit electricity consumption
by 12% ($0.9M/yr)
• Elimination of the use of cobalt
sulphate ($0.9M/yr)
• Increase in effective nameplate
capacity to 105 tpd
• Increase Cu cathode production by
0.7 tpd ($1.0M/yr)
• Additional sulphuric acid generation
of 90 tpd ($4.0M/yr)
4Q14 to
2Q15
$3.0M /
$1.8M
4Q14 $1.5M /
$5.0M
• Decrease Opex of $3.4M/yr 4Q14 $2.0M /
$3.4M
12
Opportunity for Low Capex to Achieve Significant Cash Cost Reduction (cont’d)
Project Benefit Timing
Replace SXEW Lead
Anodes with Titanium
Anodes
(Increase nameplate
capacity & reduce opex)
Heap Leaching Cleaner
Tails
(Cathode production
increase & acid production)
Reduction of Waste Haul
Distance
(Reduce Opex)
Description
• Replacement of lead anodes with
titanium anodes reduces power
consumption and increases EW
capacity
• Cu and pyrite in cleaner tails will be
recovered from flotation plant and
leached to recover residual Cu and
generate acid.
• Purchase of 400 Ha of adjacent land
east of PV for additional waste
dumps
Note:
* The engineering, analysis and investment cases for each individual project reflect preliminary estimates which will vary when the respective projects are in stable
operation
** Calculations were made considering a copper price of $3.20/lb
COBRE DEL MAYO 12
13. 13
Updated 43 – 101 Reserve and Resource Report
COBRE DEL MAYO
13
§ Updated 43-101 compliant Reserve Report released in August 2014 (published October 13, 2014)
§ Reserve of 1.13 million tons of copper with a life of mine of 15+
§ Gives effect to the Kupari Acquisition, incorporating heap leaching and flotation to process copper ore
§ Average production of ~47 kt/a (~103 Mlbs) of copper annually over a remaining 15+ year mine life.
§ Total production of ~790 kt (~1.7 Bn lbs) of copper over the current life of mine.
§ LOM cash costs are estimated at $1.65/lb copper (excluding royalties).
§ The project NPV (8%) is estimated at $1,196 M based on assumptions described therein.
Summary Mineral Reserves and Resources
18
Estimated$Reserves
Ore$(kt) Grade$(%) Total$Cu$(t)
!!!Ore!to!ROM 211,817 0.18 388,261
!!!Ore!to!Crushing 151,375 0.30 454,283
!!!Ore!for!Concentrate 57,148 0.51 292,374
Proven$&$Probable 420,340 0.27 1,134,918
!!!Waste 548,998
!!!Strip!Ratio 1.31x
Resources
Ore$(kt) Grade$(%) Total$Cu$(t)
!!!!!!Measured 304,970 0.26 792,922
!!!!!!Indicated! 210,060 0.25 525,150
!!!Total!M+I 515,030 0.26 1,318,072
!!!Inferred 52,690 0.24 126,456
Total$Resource 567,720 0.25 1,444,528
14. 14
Relevant Agreements and Risk Management
Cathode Hedging
Arrangement
§ 12 month forward sale agreement from July 2014 to June 2015
— 600 t per month @ a fixed price of $6,870/t (approx. $3.11/lb)
— Cash settlement, no margin
§ 8 month forward sale agreement from August 2014 to March 2015
— 1,800 t per month @ a fixed price of $7,130/t (approx. $3.23/lb)
— Cash settlement, no margin
COBRE DEL MAYO 14
16
Copper Cathode
§ Agreement for sale of 100% of PV cathode production to Trafigura expires Dec14.
— Cathode sold FOB at the mine and paid twice weekly against holding certificates
§ Agreement for sale of 100% of 2015 PV cathode production to two internationally
renowned, reliable, credit-worthy commodity traders (50% of cathode production to each
trader). Both agreements are valid
from
January
1,
2015
through
and
including
December
31,
2015.
Mining Concessions
§ We have the exclusive right to explore and exploit 31 mining concessions with an initial
term of 50 years which terminate between 2043 and 2062
— 26 mining concessions owned by PV
— 5 mining concessions owned by Grupo Rexgo. The right to exploit these concessions
is governed by a contract subject to international arbitration
§ Royalties: Grupo Rexgo charges PV a 3% net sales royalty for the copper mined from
their underground resource concessions (beneath PV owned land)
§ Land Ownership: PV owns all of the land at the mine in addition to a reserve for leach pad
and waste dump expansion
Notes:
1. Minerales Frontera Cobre del Mayo SA de CV is a Restricted Company for purposes of the Cobre del Mayo Indenture according to the Supplemental Indenture dated February 6, 2014.
15. 15
Relevant Agreements and Risk Containment (cont’d)
COBRE DEL MAYO 15
16
Insurance Policy
§ Insurance policy coverage for commercial loss/operational stoppage
— Policy underwritten by Zurich and Royal & SunAlliance with general coverage of
$306.6 for certain risks that are typical in the mining industry
Mining Tax
§ Mexican government implemented a special duty on mining concessions roughly
equivalent to 7.5% of EBITDA starting January, 2014
§ As currently roughly 95% of CDM ore is derived from Grupo Rexgo mining concessions,
tax is payable by the concession holder in respect to its EBITDA
Labor / Environmental
§ Safety, environmental compliance and labor relations are key areas of focus of PV
§ Since Invecture’s acquisition, Piedras Verdes has had a solid safety track record
— Lowest premium for “Riesgo de Trabajo” (worker risk) as classified by IMSS,
demonstrating the safety standards at CDM
§ Approx. 427 of our 1,040 employees (including Kupari) are represented by the
Confederación de Trabajadores de Mexico (“CTM”)
— No work stoppages in the history of the Piedras Verdes Mine
§ Certified as a Socially Responsible company by the Mexican Center for Philanthropy
(Centro Mexicano para la Filantropía) and certified as a Clean Industry by the Mexican
Federal Attorney for Environmental Protection (Procuraduría Federal de Protección al
Ambiente), the enforcement arm of the Mexican environmental ministry
Copper Concentrate
§ PV sells copper concentrate to internationally recognized trading companies
§ Current a contract with Louis Dreyfus for the delivery of 10 kt beginning on October 13th,
2014 until December 15th, 2014
§ Concentrate delivered FOB port of Guaymas (229 km from mine)
17. n The market has consistently underestimated the copper price when forecasting long term prices
n Actual copper prices have been much higher due to continuing shortfalls in supply. Delays in new projects,
Actual
Copper
Price
Broker
Consensus
(as
forecast
during
Q4
of
year
indicated)
17
Copper Price Forecasts Over Time
supply interruption and declining production from existing mines have been the main drivers
Copper Historical Price vs. Forecasts
4.50
4.00
3.50
3.00
2.50
2.00
1.50
1.00
0.50
-‐-‐
2014
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
COBRE DEL MAYO 17
18
Source: Broker Research
1. With the exception of 2014’s forecast which is as of 13 August 2014
2010
2009
2008
Actual
2010
LT
2009
LT
2008
LT
2007
LT
2006
LT
2005
LT
2004
LT
2003
LT
2002
LT
2001
LT
2000
LT
2011
LT
2011
2012
2014
LT:
$2.98
/
lb
2012
LT
2013
LT
2013
Long
Term
Price
(as
forecast
during
Q4
of
year
indicated)
(1)
18. 18
Incentive Price Drives the Floor Value of Copper
n Investment in large projects is very capital intensive and in increasingly so as head grade declines
n The incentive price required to justify investments in the expansion of existing mines and the construction
of new ones is estimated at $3.50/lb ($7,716/t)
— Incentive price considers required Cu price to achieve specified rate of return on expansion capex(1)
n Although short term copper prices are unpredictable, we believe that long term prices must be driven by
the increase over time of the incentive price (necessary to justify the investment in new production to
maintain global output)
Incentive Prices for Major Projects
Source: Wood Mackenzie
1. Analysis based on long term price required to give a 12.0% risk adjusted IRR on a pre-tax 100% equity basis.
COBRE DEL MAYO 18
18
c / lb
Paid Metal (M lbs)
19. 19
Cu Pricing Considerations
n Copper has traded in the market at a premium to the 90th percentile of the C1 cash cost curve
— C1 cash cost as estimated by Wood Mackenzie
C1 90th Percentile Costs vs. Cu Price1
$1.11 $1.62 $2.57 $2.55 $2.39 $2.65
$5.00
$4.00
$3.00
$2.00
$1.00
Source: Wood Mackenzie, LME
1. 90th percentile as estimated by Wood Mackenzie. LME prices for 2013 4Q. May, 2014.
COBRE DEL MAYO 19
18
$1.67
$3.42
$4.00
$3.61
$3.32 $3.18
$0.00
2005 2010 2011 2012 2013 2Q14 LTM
$/lb
C1 Cash Cost 90th Percentile ($/lb) Average Cu Price ($/lb)
21. 21
Stable Operating Environment in Mexico1
§ Mexico is an economic leader in Latin America and is the world’s 14th largest economy by GDP (2014E and
2015E real GDP growth of 2.4% and 3.5%, respectively)
— High degree of political stability
— OECD/WTO country and member of 12 free trade agreements, including NAFTA
— Mexican Peso has long history of one of the ten most traded global currencies
§ As a result of mining-supportive governmental policies, stability, OECD tax regime and abundance of resources,
Mexico has attracted extensive investment from international mining companies
— Over 850 mining companies operate in Mexico; 287 of which have foreign investment, and currently operate
82 producing projects within Mexico
— ~40% of mine production and ~70% of investments in exploration are undertaken by foreign investors
§ Mexico is recognized as a mining friendly jurisdiction
— Largest producer of silver globally (18% of global production)
— 3rd largest producer of copper in Latin America
§ Sonora is among the most prolific mining areas and one of the safest states in Mexico
Others,'27%'
Coahuila,'8%'
San'Luis'
Potosí,'5%'
COBRE DEL MAYO 21
26
Total Mining Production in Mexico2
Sonora,'27%'
Zacatecas,'
24%'
Chihuahua,'
13%'
2014 Copper Production in Mexico3
Sonora,'79%'
Zacatecas,'
10%'
Others,'6%'
Sources:
1 IMF, Brook Hunt, World Bank, U.S. Geological Survey
2 Secretariat of the Economy, 2012
3 National Institute of Statistics & Geography
26. 26
Conclusion
§ Operating mine without new project development risk
§ Favorable logistics and infrastructure
§ Good labour relations
§ Long life of mine of 15+ years
§ Implementing low capex program to achieve a significant reduction in C1 cash costs
§ Reasonable leverage, very strong credit metrics by comparison with other B/B3 rated companies
Attractive Yield/Risk Profile vs. Peers: COBREM bonds yield substantially wide of any
reasonable comparable
Company Ticker Rating YTM1
Cobre del Mayo COBREM 10¾
Comparable Issuers:
(15Nov18) B3/B 10.3%
Hudbay HBMCN 9½
COBRE DEL MAYO 26
16
Source:
Bloomberg
1.
As
of
October
22,
2014
(1Oct20) B3/B 8.6%
Taseko Mines TKOCN 7¾
(15Apr19) B3/B 8.6%
Thompson Creek TCMCN 9¾
(1Dec17) B1/B 6.9%
Thompson Creek TCMCN 7⅜
(1Jun18) Caa2/CCC- 9.1%
Thompson Creek TCMCN 12½
(1May19) Caa2/CCC- 9.9%
27. 27
Conclusion
Low risk mining
friendly jurisdiction;
high quality
infrastructure;
Very strong cash
flow generation
enables
deleveraging
premier track record COBRE DEL MAYO
15+ year mine life
supported by
independent 43-101
completed in
August 2014
Cash cost and
production
enhancement
program initiated
2Q’14
Low sustaining
capex estimated at
$14.2 million
annually LOM
http://www.cobredelmayo.com/
COBRE DEL MAYO 27
46
29. 29
Kupari Acquisition Summary
Two of our three shareholders (“Parent Companies”), Frontera Copper Corporation (“Frontera”) and Frontera
Cobre del Mayo Mexico (“Frontera Mexico”), have acquired all of the common shares of Kupari Holdings, S.A.
On October 3, 2014 they contributed them to Cobre del Mayo S.A. de C.V. (“Cobre del Mayo”) as fresh equity.
Frontera and Frontera Mexico acquired these common shares for cash. Frontera and Frontera Mexico have also
committed to acquire all of the preferred shares of Kupari Holdings subject to the prior approval of the Mexican
Federal Economic Competition Commission (Comisión Federal de Competencia Económica or “COFECE”).
Upon receipt of the COFECE Authorization, Frontera will (i) cause approximately $42.5 million of the preferred
stock of Kupari Holdings to be conveyed in payment of debts of this same amount owed to Cobre del Mayo and
(ii) pursuant to an agreement among the Parent Companies and Cobre del Mayo, the remaining preferred stock
will be contributed as additional equity to Cobre del Mayo no later than February 1, 2016. The preferred shares
convey the right to a nominal dividend, are perpetual and do not generally have the right to vote.
Our third shareholder, Lawrie Associates LLP, has committed to subscribe for $15.5 million of additional equity of
Cobre de Mayo by October 17, 2014.
Through its wholly owned subsidiaries, Kupari Holdings owns and operates a flotation plant adjacent to the
Piedras Verdes Mine that processes refractory and vein type copper ore that it purchases from Cobre del Mayo.
As a consequence of these transactions, Cobre del Mayo will own and operate the floatation plant and will be
able to directly process its copper ore both by leaching and by flotation.
COBRE DEL MAYO 29
6