QUADRA and FNX Announce Merger of Equals

 

TORONTO, ON - Quadra Mining Ltd. and FNX Mining Company Inc. reported that they have entered into a definitive agreement to merge the two companies to create a new leading intermediate copper producer. The combined company will be named Quadra FNX Mining Ltd.

Leverage to the Sudbury Basin, one of the world's most prominent mining camps, delivering copper and precious metal production and nickel optionality at the McCreedy West, Levack and Podolsky properties, and growth from the Levack Footwall Deposit development project, the recently announced Victoria discovery, and the substantial exploration potential from FNX's significant land position

Significant copper production from the Robinson Mine in Nevada, Carlota Mine in Arizona and Franke Mine in Chile, coupled with long term growth potential from the large-scale Sierra Gorda development project. Quadra's proposed joint venture partnership with State Grid International Development Limited ("SGID") of China will provide funding for the development and operation of Sierra Gorda and the Franke mine in Chile

 The merged company will have anticipated 2011 production of approximately 300 million pounds of copper, 150,000 ounces of precious metals, with significant leverage to by-product metals including nickel, gold, platinum and palladium. In addition it will have the optionality to produce primary nickel.

 Focused in low risk geopolitical environments with primary assets located in Canada, the USA and Chile

Paul Blythe, President and CEO of Quadra, stated: "The merger of Quadra and FNX is a springboard transaction that creates a leading intermediate copper producer with financial strength, a solid asset base, and an experienced and entrepreneurial management team. Consistent with our longstanding strategy of growth through a combination of organic and M&A strategies, Quadra FNX will build on the strong foundation of both companies to continue growing and delivering value for Quadra FNX's existing and new shareholders."

The company’s address is 1055 Dunsmuir Street, P.O. Box 49185, Vancouver, BC V7X 1K8, 604-689-8550, fax: 604-689-8556.