DRAGOON, Ariz., June 24, 2005 (PRIMEZONE) -- Nord Resources Corporation (Pink Sheets:NRDS) is pleased to announce a significant opportunity to pursue its stated goal of becoming a mid-tier base metals producer.
The Company has received an option from TMD Acquisition Corp., a private company owned by two directors of Nord Resources, to acquire the mining and processing assets of the Tennessee Mines Division of Asarco ("TMD"), located near Knoxville, Tennessee, along with a group of exploration properties located in Middle Tennessee. TMD Acquisition currently has an agreement with Asarco for the purchase of the mining properties by TMD Acquisition. At the time TMD Acquisition Corp. acquired the right to purchase TMD, an option and right of first refusal was granted to Nord Resources to obtain TMD Acquisition's rights for fair consideration to be determined at the time they may be assigned, and is contingent upon financing and completion of due diligence. The TMD operations consist of:
-- three underground zinc mines with all existing equipment and
infrastructure;
-- a processing plant that produces zinc concentrates along with
aggregate byproducts, and;
-- all mineral rights and real property held by Asarco in the
region.
TMD last operated in late 2001, at which time operations were suspended during a period of low metal prices. TMD has typically produced very clean zinc concentrates at the rate of approximately 90,000 tons per year and containing over 125 million lbs. of zinc. This equates to approximately $70 million in annual revenues at current zinc prices. The facilities are in excellent condition and have been well maintained by Asarco since the 2001 suspension. Nord's management believes that full production could be achieved in less than 10 months from startup, subject to available financing. Negotiations are ongoing regarding a long-term contract for the sale of the zinc concentrates.
Further, although there can be no assurance, it appears that there may be significant upside exploration potential in both the immediate mine area and at the undeveloped Middle Tennessee Properties. In the mine area, TMD controls mineral rights in a belt approximately 17 miles long and 3 miles wide. In Middle Tennessee, TMD controls approximately 13,858 acres of advanced exploration ground, the bulk of which is held under private lease.
Nord's Chairman and CEO, Ron Hirsch, who is also one of the major owners of TMD Acquisition, stated "If Nord Resources exercises its option rights, it could truly be an extraordinary opportunity for the Company to build substantial shareholder value. Coupled with the pending financing of our Johnson Camp Copper Mine in Arizona, we anticipate increasing awareness of Nord's promise as a well-positioned, mid-tier base metals producer. In addition, Nord continues to pursue the exciting copper exploration prospects at our Coyote Springs, Arizona and Mimbres, New Mexico properties." In order for Nord to exercise its rights granted by TMD Acquisition, some waiver or removal of the lending restrictions on Nord's ability to engage in mining activities not related to its primary copper business will have to occur, and there can be no assurance that it will.
Ron Hirsch also commented on the Company's pending filing of outstanding reports with the U.S. Securities and Exchange Commission. "We continue to work diligently to make our filings with the SEC in an effort to come back into compliance with our reporting obligations. Although we cannot guarantee it, we anticipate that annual reports on Form 10-KSB for the fiscal years ended December 31, 2002, 2003 and 2004 will be filed in our 3rd quarter of this year," he said.
About Nord Resources Corporation:
Nord Resources is an Arizona-based natural resource company focused on near-term copper production from its Johnson Camp Mine and the exploration for copper, gold and silver at its properties in Arizona and New Mexico. The Company also owns approximately 5.1 million shares of Allied Gold Limited, an Australian company. In addition, the Company maintains a net profits interest in Sierra Rutile Limited, a Sierra Leone, West African company that controls the world's highest-grade natural rutile deposit. According to recent press articles, Sierra Rutile Limited plans to resume operations later this year. Please visit Sierra Rutile's website at www.sierrarutile.com for further information.
FORWARD-LOOKING STATEMENTS:
Any statements made in this press release which are not historical facts contain certain "forward-looking statements", as such term is defined in the Private Litigation Reform Act of 1995, concerning potential developments affecting the business, prospects, financial condition and other aspects of the company to which this release pertains. The actual results of the specific items described in this release, and the company's operations generally, may differ materially from what is projected in such forward-looking statements. Although such statements are based upon the best judgments of management of the company as of the date of this release, significant deviations in magnitude, timing and other factors may result from business risks and uncertainties including, without limitation, the company's dependence on third parties, general market and economic conditions, technical factors, the availability of outside capital, receipt of revenues and other factors, many of which are beyond the control of the company. The company disclaims any obligation to update information contained in any forward-looking statement.
These forward looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance, or achievement expressed or implied by such forward looking statements. In some cases, you can identify forward looking statements by terminology such as "may," "will," "should," "could," "intend," "expects," "plan," "anticipates," "believes," "estimates," "predicts," "potential," or "continue" or the negative of such terms or other comparable terminology. Although we believe that the expectations reflected in the forward looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, or achievements. Moreover, neither we nor any other person assumes responsibility for the accuracy and completeness of such statements.