* To focus on development of Mt. Milligan project
* Sees production from Mt. Milligan by 2012
* Exploring various avenues for funding Mt. Milligan
(Refiles to clarify headline)
By Euan Rocha
TORONTO, March 8 Canadian exploration company
Terrane Metals Corp TRX.V is focusing on becoming a junior
gold producer and plans to spin-off its Berg copper-molybdenum
project, Chief Executive Rob Pease said on Monday.
"We are going to try and position Terrane as a gold
company, as gold companies get premiums in the market," said
Pease, while speaking along the sidelines of the PDAC mining
convention in Toronto.
Pease expects the spin-off of Berg, located in the western
Canadian province of British Columbia, to occur within this
Terrane is focused the development of its Mt. Milligan
copper-gold project, which is also located in British Columbia.
The project, over a 22-year mine life, is expected to produce
almost 200,000 ounces of gold and 80 million pounds of copper
Terrane, which is majority owned by Canada's Goldcorp
(G.TO), expects capital expenditure costs of C$915 million to
develop the Mt. Milligan project, with full production expected
by the end of 2012.
Pease said the company is looking at numerous ways to fund
the development costs.
"We are going to talk to the equity markets and may do
something there. We are also analyzing the possibility of going
into some copper and/or gold stream sales as part of our
financing," said Pease, in an interview with Reuters.
"We have down a lot of work on project debt already that is
well advanced. We are hoping to supply a lot of financing from
the debt side," said Pease, who indicated that as much as 50 to
60 percent of the project's development cost could be funded by
The PDAC convention, organized by the Prospectors and
Developers Association of Canada, is the largest industry
gathering of its kind, drawing more than 20,000 participants
this year as global metals demand promises to hold steady and
the world emerges from economic crisis.
(Editing by Lincoln Feast)
(firstname.lastname@example.org; Reuters Messaging:
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