VANCOUVER, BRITISH COLUMBIA--(Marketwired - Oct. 6, 2014) - Stingray Copper Inc. ("Stingray"), a wholly-owned subsidiary of Mercator Minerals Ltd. (TSX:ML) ("Mercator"), announced today that it has initiated a sale process (the "Sale Process") to divest of its El Pilar copper development project (the "El Pilar Project").
The El Pilar Project is an oxide copper development project located in Sonora, Mexico. All of the permits required to commence the construction have been received. A Feasibility Study was prepared for Mercator in accordance with National Instrument 43-101 on the El Pilar Project and was filed on October 18, 2012 on SEDAR at
www.sedar.com under the Mercator company profile.
Stingray and its wholly-owned subsidiaries have negotiated a mutually acceptable forbearance arrangement with their creditor, RMB Australia Holdings Limited ("RMB") to allow Stingray to complete the Sale Process. In addition, Stingray and its wholly-owned subsidiaries have also negotiated a funding agreement with RMB that will allow them to continue normal course business at El Pilar during the Sale Process.
Stingray and its subsidiaries are not part of proceedings involving Mercator under the Bankruptcy and Insolvency Act (Canada).
It is the current intention of Stingray not to disclose developments with respect to the Sale Process until a specific transaction has been approved or otherwise determines that disclosure is necessary or appropriate. Stingray cautions that there are no assurances or guarantees that the Sale Process will result in a transaction or, if a transaction is undertaken, the terms or timing of such a transaction.
RBC Capital Markets has been engaged as financial advisor to conduct the Sale Process, and Deloitte Corporate Finance Inc. has been engaged as strategic advisor to Stingray.
Marc LeBlanc
President & Director - Stingray Copper Inc.
All inquiries regarding the Bankruptcy and Insolvency Act (Canada) proceedings of Mercator should be directed to the Proposal Trustee at 604-640-3062. Court materials and other information about the proceedings will be available on the Proposal Trustee's website at:
www.insolvencies.deloitte.ca/en-ca/Pages/mercator.aspx.