AQM Copper Announces Mitsubishi Materials Investment in Zafranal

AQM Copper Announces Mitsubishi Materials Investment in Zafranal 
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 07/02/13 -- AQM
Copper Inc. (TSX VENTURE:AQM)(BVL:AQM) ("AQM " or the "Company") is
pleased to announce that Mitsubishi Materials Corporation has agreed
to invest US$22.60 million into the Company's wholly owned Peruvian
subsidiary Minera AQM Copper Peru S.A.C.("MAQM") and committed an
additional US$15.07 million in exchange for an indirect interest of
20% in the Company's Zafranal Project in southern Peru currently
owned in a 50-50 joint venture with Teck Resources Limited.  
Under the terms of the Subscription Agreement, Mitsubishi Materials
Corporation ("MMC") has agreed to subscribe for shares in MAQM for an
aggregate purchase price of US$22.6 million, resulting in MMC holding
a 40% shareholding interest in MAQM and AQM holding the remaining
60%. The completion of the share subscription is subject to a number
of conditions precedent, including the confirmation of
representations and warranties of AQM as set out in the Subscription
Agreement, compliance with covenants set out in the Subscription
Agreement, and completion of certain Peruvian corporate matters
necessary to facilitate the share subscription by MMC. The share
subscription is expected to close in several weeks once such Peruvian
corporate filings and corporate law processes are complete. As MAQM
holds a 50% interest in Compania Minera Zafranal ("CMZ"), the
Zafranal Project joint venture company, this provides MMC with a 20%
indirect interest in CMZ and the Zafranal Project.  
Upon the completion of the share subscription, the Company, MMC and
MAQM will enter into a joint venture shareholders' agreement pursuant
to which MMC and the Company will jointly contribute to MAQM's 50%
interest in the Zafranal Project. The Company and MMC have settled
the terms and form of the joint venture shareholders' agreement. All
major decisions regarding MAQM and the ongoing development of the
Zafranal Project will require the approval of both MMC and the
Company. During the initial carried period where MMC has agreed to
fund an additional US$15.07 million, MMC will have a casting vote on
all major decisions.   
The additional US$15.07 million that MMC has agreed to fund, is
expected to more than cover its 40% share of MAQM's anticipated costs
of proposed Pre-Feasibility and Feasibility Studies for the Zafranal
Project (subject to approval by the shareholders of CMZ to initiate
such studies). AQM's share of MAQM's costs related to such studies
will be solely funded from MMC's initial US$22.6 million investment,
which is expected to result in the Company holding effectively a
carried interest in the Zafranal Project through to a production
Following the carried period, each of MMC and the Company will be
required to fund their pro rata share of programs and budgets or will
be subject to dilution.  
Mr. Bruce Turner, President and CEO of AQM stated that "this
significant investment in the project by MMC underscores the quality
of the project and an endorsement of AQM's ability to continue to
advance it toward production. With this funding in place, we are
excited to be positioned to commence progress on a proposed
Pre-Feasibility Study in the months ahead. We look forward to having
MMC as our partner going forward."  
Bruce Turner, President and CEO  
ABOUT AQM Copper: AQM Copper Inc. is a Canadian based mineral
exploration company exploring and developing copper deposits in South
America. Through its wholly owned Peruvian subsidiary, Minera AQM
Copper Peru S.A.C., the Company is developing the Zafranal
Copper-Gold Porphyry Project located in Southern Peru. Minera AQM
Copper Peru S.A.C. is the operator of a 50/50 Joint Venture with Teck
Resources Limited through a sole purpose Peruvian company, Compania
Minera Zafranal.  
The Company published a favourable independent Preliminary Economic
Assessment ("PEA") in January 2013 which calculated a NI 43-101
compliant Measured and Indicated Resource of 557.2 Mt grading 0.36%
Cu and 0.07 g/t Au. The PEA was completed by Tetra Tech WEI Inc.,
("Tetra Tech"), and contains production parameters, capital costs,
operating costs, pre-tax and post-tax financial projections for an
open pit mine processing 80,000 t/d of mill feed and a leach
operation based on the treatment of approximately 20,000 t/d of oxide
and secondary sulphide material. Using long-term forecasted copper
and gold prices of US$3.00/lb and US$1,274/oz respectively; and an
initial capital cost of US$ 1,520 million, the Project is projected
to yield a post-tax Net Present Value at 8% discount rate, of US$ 588
million and an internal rate of return (IRR) of 17.4%. The valuation
is based on 100% of the Project and 100% Equity. The reader should be
aware that the preliminary economic assessment is preliminary in
nature, and includes inferred mineral resources that are considered
too speculative geologically to have the economic considerations
applied to them that would enable them to be categorized as mineral
reserves. The reader should also be aware that there is no certainty
that the results forecast in the preliminary economic assessment will
be realized. Mineral resources that are not mineral reserves do not
have demonstrated economic viability.  
The Company's management and directors have extensive experience
working for the world's largest mining copper producers and
investment banking backgrounds. Please refer to the Company's website
at, for further information regarding the Company
and the Zafranal Project.  
Except for statements of historical fact relating to AQM Copper Inc.,
certain information contained herein constitutes "forward-looking
statements". Forward-looking statements include statements that are
predictive in nature, depend upon or refer to future events or
conditions, or include words such as "expects", "anticipates",
"plans", "believes", "considers", "intends", "targets", or negative
versions thereof and other similar expressions, or future or
conditional verbs such as "may", "will", "should", "would" and
"could". We provide forward-looking statements for the purpose of
conveying information about our current expectations and plans
relating to the future and readers are cautioned that such statements
may not be appropriate for other purposes. By its nature, this
information is subject to inherent risks and uncertainties that may
be general or specific and which give rise to the possibility that
expectations, forecasts, predictions, projections or conclusions will
not prove to be accurate, that assumptions may not be correct and
that objectives, strategic goals and priorities will not be achieved.
These risks and uncertainties include but are not limited to those
identified and reported in AQM Copper Inc's public filings, which may
be accessed at Other than as specifically required by
law, we undertake no obligation to update any forward-looking
statement to reflect events or circumstances after the date on which
such statement is made, or to reflect the occurrence of unanticipated
events, whether as a result of new information, future events,
results or otherwise.
Spyros P. Karellas
Pinnacle Capital Markets LTD.
(416) 433-5696
(416) 800-8921
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