[DELETED LOGO] NORD PACIFIC LIMITED
201 Third Street NW, Suite 1750
Albuquerque, NM 87102
505/241-5820
Fax: 505/766-9922
NEWS RELEASE
NORD PACIFIC CLOSES PURCHASE OF TRITTON COPPER PROJECT
AND ACCEPTS BASIC FINANCING TERM SHEET FOR DEVELOPMENT OF MINE
June 5, 2000 OTCBB: NORPF
Toronto Stock Exchange: NPF
Albuquerque, New Mexico - - Nord Pacific Limited announced
today it had closed the transaction to purchase the remaining 50%
interest in the Tritton copper project, New South Wales,
Australia, and that it had accepted a preliminary offer of bank
financing to develop the mine. Terms of the purchase agreement
with Straits Resources Limited, giving the Company 100%
ownership, were previously announced December 17, 1999.
Development plans call for Tritton to be an underground mine
producing an average of 18,000 tonnes (40 million pounds)
annually of copper in concentrates beginning in 2002 over a mine
life exceeding seven years.
The limited recourse debt financing from Bank of Western
Australia Ltd. ("BankWest") would consist of a number of debt and
credit support instruments including cash advance facilities of
A$35 million (US$20 million); credit facilities for hedging the
copper price, the currency exchange rate and the interest rate;
and a credit facility to cover statutory bonding requirements.
The BankWest financing is conditional on a number of factors,
chief among them satisfactory technical review by BankWest's
external independent engineer, syndication with other banks and
completion of formal documentation. BankWest has provided
similar financing for the Company's nearby Girilambone copper
mine.
Commenting on the proposed Tritton financing, chief
executive Dr. Pierce Carson stated, "The Company is very pleased
to accept this comprehensive term sheet which management
anticipates would allow the mine to be developed on a 100% debt
basis. The financing reflects the excellent relationship the
Company has enjoyed with BankWest for many years and demonstrates
the Bank's faith in the Tritton project and in Nord Pacific's
management team."
The Company is currently negotiating agreements with
construction and mining contractors to develop the mine.
Construction is planned to begin in the fourth quarter of 2000.
Allowing twelve months for underground work to reach and develop
the upper levels of the orebody, initial production could be
expected in the first quarter of 2002.
Dr. Carson said, "The Tritton mine is key to Nord Pacific's
future and is expected to provide continued cash flow from
operations as the Girilambone mine approaches the end of its
life. The new mine fits well with the Company's strategy to
focus on achievable projects that generate cash flow and earnings
with an emphasis on copper and precious metals."
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In addition to the Tritton project, Nord Pacific owns an
interest in the nearby Girilambone copper mine which has been in
production since 1993 and 100% of the Simberi gold development
project in Papua New Guinea. Nord Pacific also has a carried
interest in the Johnson Camp copper mine in Arizona, owned by the
Company's 28.5% shareholder, Nord Resources Corporation. In
addition, the Company carries out activities in the United
States, Mexico and Canada.
Safe Harbor Statement under the Private Securities
Litigation Act of 1995: The statements contained in this release
which are not historical fact are "forward looking statements"
that involve various important risks, uncertainties and other
factors which could cause the Company's actual results to differ
materially from those expressed in such forward looking
statements. These factors include, without limitation the risk
factors disclosed in the Company's securities filings.
For information contact:
Pierce Carson, President and Chief Executive Officer
(505) 241-5820
Website: www.nordpacific.com
