Bell Copper Corporation ("Bell Copper" or the "Company") (TSX
VENTURE:BCU) announces that the Company has implemented a strategic
plan to work through the unprecedented challenges in the capital
markets.
Capital Markets
Since the closing of the Company's private placement financing
in May of 2011, the capital markets in Canada and globally have
been generally challenging with limited institutional and
investment banking appetite for financing for junior exploration
and development companies. In this environment it is imperative
that Bell Copper preserve capital and reduce expenditures.
Strategic Plan
Bell Copper intends to reduce its exposure to non-core project
expenditures by exploring potential strategic transactions with
respect to the Company's non-core projects.
As part of this strategy, the Company intends to option or enter
into a joint venture arrangement in respect of its Sombrero Butte
project located in Pinal County, Arizona, which is drill ready. In
the event that no option or joint venture arrangement is
undertaken, exploration will be placed on hold until the capital
markets improve and the Company is able to finance exploration on
acceptable terms.
Consistent with this strategy, in April 2012, the Company
entered into an option agreement with AKA Ventures Inc. ("AKA")
whereby AKA can earn a 60% interest in the Company's Kabba project
by expending a total of Cdn$6 million on exploration and other work
on the project and issuing to the Company a total of 10 million
shares of AKA over a three-year period (see the news release issued
by the Company on April 11, 2012).
In the absence of equity financing, management believes that
such partnerships make sense based on the upside potential of the
projects versus the current market capitalization of the
Company.
The Company also intends to eliminate its exposure to the
secured term credit facility provided to the Company's wholly-owned
subsidiary, Rogue River Resources Corp., by Macquarie Bank Limited
via the sale of the Company's La Balsa project located in
Michoacan, Mexico.
In support of this strategy to reduce non-core project
expenditures, the Company has also reduced staff on its technical
team and has incurred no major expenditures on its projects other
than payments required to keep such projects in good standing.
The Company intends to focus on moving forward its core project,
the Van Dyke project located in Miami, Arizona (see the news
release issued by the Company on March 12, 2012). The Van Dyke
project consists of approximately 1100 acres of patented ground and
was developed in the early 1900s when a mineshaft was sunk to a
depth of 1692 feet. The mine produced 11,800,000 pounds of copper
between 1929 and 1945 from azurite, malachite, chrysocolla and
tenorite ores grading just over 5.0% copper. Between 1968 and 1980,
Occidental Minerals Corporation drilled 70 exploration holes on the
property, 62 of which encountered copper mineralization. 46 of
these holes were used to estimate a historical mineral resource of
112,000,000 tons at a grade of 0.52% copper. This historical
estimate is derived from an internal report prepared by Occidental
Minerals Corporation in 1973. This report was not prepared in
accordance with currently accepted guidelines for the preparation
of mineral resources and mineral reserves and does not comply with
National Instrument 43-101 ("NI 43-101"). A qualified person, as
such term is defined under NI 43-101, has not done sufficient work
to classify the historical estimate as current mineral resources or
mineral reserves. Bell Copper does not consider the historical
estimate to be a current mineral resource or mineral reserve
estimate and the historical estimate should not be relied upon.
Metallurgical test work by Occidental Minerals Corporation
indicated that between 70% and 80% of this copper could be
recovered by means of in situ sulfuric acid leaching, with 3.8
pounds of acid being consumed per pound of copper produced. In
2010, Bell Copper acquired 35 federal mining claims covering
approximately 600 acres contiguous with the southern edge of the
Van Dyke property, where additional mineralization may be
encountered. Currently, there are two underutilized SXEW plants
located near the Van Dyke project.
Management proposes to use equity financing to move the Van Dyke
project forward, and believes that a share consolidation on a seven
for one basis, which will be proposed to the Company's shareholders
at the upcoming annual and general meeting scheduled to be held on
June 26, 2012 (see the news release issued by the Company on May
30, 2012), will improve the Company's ability to raise such equity
financing. The policies of the TSX Venture Exchange restrict the
Company from issuing shares at a price per share less than $0.05,
which is a significant premium to the Company's current share
price. Management expects the share consolidation to result in a
higher price per share, enabling the Company to issue common shares
at a price near the then current market price.
Bell Copper Value
Based on current copper prices, management believes that the
value of Bell Copper is in excess of its present market
capitalization.
Qualified Person
Dr. Timothy Marsh, Ph.D., P.Eng., President of Bell Copper and a
qualified person as such term is defined in NI 43-101, has reviewed
and approved the scientific and technical information included in
this news release.
About Bell Copper
Bell Copper is a public company focused on the development and
exploration of its copper assets in the Americas through internal
efforts and via strategic partnerships.
More information on Bell Copper: www.bellcopper.net.
On behalf of the Board of Directors of Bell Copper
Corporation
Michael Werner, CEO & Director
This press release contains "forward-looking information" within
the meaning of applicable Canadian securities legislation. Forward
looking information includes, but is not limited to, statements
with respect to the impact of the share consolidation on the
Company and the development potential of the Company's properties.
Generally, forward-looking information 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", "could", "would", "might"
or "will be taken", "occur" or "be achieved". Forward-looking
information is 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 information, including but not limited to: general
business, economic, competitive, political and social
uncertainties; acquisition risks, the actual results of current
exploration activities; delay or failure to receive board or
regulatory approvals; timing and availability of external financing
on acceptable terms; the Property not being integrated successfully
or such integration proving more difficult, time consuming or
costly than expected, not realizing on the potential benefits of
the proposed transaction; conclusions of economic evaluations;
changes in project parameters as plans continue to be refined;
future prices of mineral prices; failure of plant, equipment or
processes to operate as anticipated; accidents, labour disputes and
shortages and other risks of the mining industry; and, delays in
obtaining governmental approvals or required financing or in the
completion of activities. Although the Company has attempted to
identify important factors that could cause actual results to
differ materially from those contained in forward-looking
information, there may be other factors that cause results not to
be as anticipated, estimated or intended. There can be no assurance
that such information 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 information. The Company does not
undertake to update any forward-looking information, except in
accordance with applicable securities laws.
NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES
PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX
VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR
ACCURACY OF THIS RELEASE.
Contacts: Bell Copper Corporation Bulgan Orgilsaikhan
Communications Manager (416) 309-2895info@bellcopper.net
www.bellcopper.net