DRAGOON, Ariz., April 12, 2004 (PRIMEZONE) -- Nord Resources Corporation (Other OTC:NRDS) is pleased to announce that it has engaged Investor Resources Limited to help the Company raise, on a private placement basis, up to US$5 million in equity financing. The financing will be used to fund expenditures for the resumption of copper production at the Company's Johnson Camp mine and for general and working capital purposes.
Investor Resources Limited ("IRL") provides client services for capital raising and financial structuring; acquisitions, joint ventures and divestitures, and project assessment and improvement. IRL focuses almost exclusively on the resources industry and has recently engaged the services of Dr. Leanne Baker to help expand its global client services. Dr. Baker is the former metals and mining equity analyst at Salomon Smith Barney and manager of commodity research at Philipp Brothers Inc.
Company Interests
Nord Resources owns the Johnson Camp SX-EW copper mine in Arizona, which is currently on care and maintenance. According to the Johnson Camp Feasibility Study conducted by The Winters Company, the mine can be returned to production approximately eight months after receipt of necessary financing, and production of 99.999% copper cathode can begin within three months of a restart. The Feasibility Study concluded that the Johnson Camp heap leach copper mine can be operated profitably and will generate significant cash flows at current copper prices, which recently touched eight year highs.
Nord Resources also owns the Coyote Springs porphyry copper-gold property near Safford in Graham County, Arizona. Coyote Springs is a significant, large tonnage porphyry copper-gold exploration target with exposed, surface copper oxides and potential for deeper copper sulfides. The property is situated immediately north and adjacent to the Phelps Dodge Corporation Safford Project which has been described by the US Geological Survey to be the largest undeveloped porphyry copper mining district in the world with proven undeveloped reserves.
In addition, the Company has an interest in Nord Pacific Limited (Other OTC:NORPF). Nord Pacific is involved in the Simberi Gold Joint Venture located in Papua New Guinea and has recently agreed to a Plan of Arrangement with Allied Gold Limited, an Australian company, under which Nord Pacific will be acquired by Allied Gold. Upon conclusion of the Plan of Arrangement, Nord Resources will own approximately 5 million shares of Allied Gold.
Nord Resources also owns a 2.5% royalty interest in Sierra Rutile Limited, which, based on current information, is slated to resume production of titanium dioxide in 2004. At one time, this project represented over 50% of the entire exports of Sierra Leone.
This release includes certain statements that may be deemed to be "forward-looking" statements within the meaning of the US Private Securities Litigation Reform Act of 1995. All statements released, other than statements of historical facts, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Corporation expects, are forward-looking statements. Although Nord Resources Corporation believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include metals prices, exploitation and exploration successes, availability of capital and financing, and general economic, market or business conditions. Nord Resources Corporation does not undertake any responsibility to update the forward-looking statements in the future.